Jeff Boyer, of Rainking Company, designs and installs custom lawn and garden irrigation systems for homes and businesses throughour the state. Each job is different, requiring differene materials and labor for installing the systems. Rainking estimated the following for the year: 250 5,000 క,000 S75,000 S65,000 Number of installations Number of direct labor hours Direct materials cost Direcr labor cost Overhead cost During the year, the following actual amounts were experienced: Number of installations 245 5,040 S59.350 $75,600 S64,150 Number of direct labor hours Direct materials used Direct labor incurred Overhead incurred Required: 1. Should Rainking use process costing or job-order costing Explain. 2. IF Rainking uses a normal costing system and overhead is applied on the basis of direct labor hours, what is the cost of an installation that takes $3,500 of direct materials and 50 direct labor hours? 3. Explain why Rainking would have difficulty using an actual costing system.

Required Information [The following information applies to the questions displayed below.] The Platter Valley factory of Bybee Industries manufactures field boots. The cost of each boot includes direct materials, direct labor, and manufacturing (factory) overhead. The firm traces all direct costs to products, and it assigns overhead cost to products based on direct labor hours. The company budgeted $15,000 variable factory overhead cost, $90,000 for fixed factory overhead cost and 2,500 direct labor hours (its practical capacity) to manufacture 5,000 pairs of boots in March. The factory used 2,700 direct labor hours in March to manufacture 4,800 pairs of boots and spent $15,600 on variable overhead during the month. The actual fixed overhead cost incurred for the month was $92,000. The Platter Valley factory of Bybee Industries uses a two-variance analysis of the total factory overhead variance. Required: 1. Compute the total flexible-budget variance for overhead and the production…

a. Eye for detail is an interior decorating firm located in sydney. The following costs were incurred in the firms contract to redecorate the local council offices: direct material $5,600 Professional labour 12 000 The firms budget for the year included the following estimates: Budgeted overhed $800,000 Budgeted proffesional labour 500,000 1. Calculate the total cost of the firms contract to redcorate the council offices. Overhead is applied to contracts using a predetermined overhead rate, calculated annually, based on the professional labour cost. Materials are charged directly to each contract  2. Using the total cost to calculate a service fee, assuming that the company adds a 40 per cent profit margin to total cost. b. Refer to the information for a. 1.  Calculate the fee charged to redecorate the council offices assuming that the firm uses a chargeout rate of $360 per professional labour hour, which includes a profit margin of 40 per cent, and 120 hours are worked on the…

Mukhi

Hazelnut Corporation manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $143,484 in overhead. The company has identified the following information about its overhead activity pools and the two product lines: Quantity or Amount Consumed by Basic Activity Pools Materials handling Quality control Machine maintenance Cost Driver Number of moves Number of inspections Number of machine hours Required 1 Complete this question by entering your answers in the tabs below. Basic Model Luxury Model Required 2 Required 3 Required 4 Required: 1. Suppose Hazelnut used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. 2. Calculate the activity rates for each activity pool in Hazelnut's ABC system. 3. Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system. 4. Determine the amount of overhead Hazelnut will assign…

Mariposa, Inc., produces machine tools and currently uses a plantwide overhead rate, based on machine hours. Harry Whipple, the plant manager, has heard that departmental overhead rates can offer significantly better cost assignments than can a plantwide rate. Mariposa has the following data for its two departments for the coming year:   Department A Department B Overhead costs (expected) $528,000 $132,000 Normal activity (machine hours) 110,000 55,000 Required: 1. Compute a predetermined overhead rate for the plant as a whole based on machine hours.$fill in the blank 1 per machine hour 2. Compute predetermined overhead rates for each department using machine hours. Round your answers to one decimal place. Department A $fill in the blank 2 per machine hour Department B $fill in the blank 3 per machine hour 3. Suppose that a machine tool (Product X75) used 60 machine hours from Department A and 140 machine hours from Department B. A second machine tool (Product Y15)…

15, please answer the question. thanks

Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($500,040 926,000 units) Parker Plastic had the following actual results for the past year: Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used Number of Labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 1.200,000 12,200,000 $7,320,000 324,000 $3,855,600 $1,300,000 $ 381,000 Required: Calculate Parker Plastic's direct labor rate and efficiency variances Direct Labor Rate Variance Direct Labor Efficiency Vince Standard Quantity 13 square foot 0.25 hour 0.25 hour Standard Price (Rate) $ 0.70 per square foot $ 12.20 per hour $ 1.40 per hour Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting…

Part "Mendes" is used in one of Shawn's products. The company's Accounting Department reports the following costs of producing the 12,000 units of the part that are needed every year. Direct Materials $4.79 Direct labor $1.16 Variable overhead $2.68 Supervisor's salary $3.38 Depreciation of special equipment $2.67 Allocated general overhead $1.54 An outside supplier has offered to make the part and sell it to the company for $14.86 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $5651 of these allocated general overhead costs would be avoided. What would be the impact on total net income if Shawn accepted the supplier's offer?  Round only your final answer to the nearest…

1. Should EcoScape use process costing or job-order costing? Job-order costing 2. If EcoScape uses a normal costing system and overhead is applied on the basis of direct labor hours, What is the overhead rate? Round your answer to the nearest cent. per direct labor hour What is the average actual wage rate? per direct labor hour What is the cost of an installation that takes $3,650 of direct materials and 20 direct labor hours?