Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costs Total costs KA-15 KA-24 Total 600 400 360 750 $ 72,000 540 1,750 $ 120,000 1,000 900 2,500 $ 192,000 15,000 35,000 50,000 187,200 $ 429,200 Required: a. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses direct labor costs to allocate overhead costs. Note: Round your answer to 1 decimal place. > Answer is complete but not entirely correct. Predetermined overhead rate 3.7 % of direct labor cost

Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costs Total costs KA-15 KA-24 Total 600 400 360 750 $ 72,000 540 1,750 $ 120,000 1,000 900 2,500 $ 192,000 15,000 35,000 50,000 187,200 $ 429,200 Required: a. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses direct labor costs to allocate overhead costs. Note: Round your answer to 1 decimal place. > Answer is complete but not entirely correct. Predetermined overhead rate 3.7 % of direct labor cost

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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Required information [The following information applies to the questions displayed below.] Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costs Total costs Required A Required B KA-15 Required C Product costs per unit 600 360 750 $ 82,000 16,500 Required: a. Compute the individual product costs per unit assuming that Kilbourne Appliances uses the number of units to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Kilbourne Appliances uses direct labor cost. c. Compute the individual product costs per unit assuming that Kilbourne Appliances uses direct material costs to allocate overhead to the products. KA-24 400 540 1,750 $ 130,000 38,500 KA-15 KA-24 $ 222,520.00 $ 251,180.00 Total 1,000 900 2,500 $ 212,000 55,000…
! Required information [The following information applies to the questions displayed below.] Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costs. Total costs KA-15 600 360 750 $ 80,000 16, 200 $ KA-24 400 540 1,750 128,000 37,800 Total 1,000 900 2,500 $ 208,000 54,000 202,800 $ 464,800
Angle Max Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next year's expected costs and activities are shown below. Direct labor hours Machine hours Overhead costs Multiple Choice Assume that the Assembly Department allocates overhead using a plantwide overhead rate based on machine hours. How much total overhead will be assigned to a product that requires 2 direct labor hour and 3.30 machine hours in the Assembly Department, and 4.50 direct labor hours and 0.4 machine hours in the Finishing Department? O$17.60. Assembly 180,000 DLH 380,000 MH $380,000 $20.40. Finishing 148,000 DLH 91, 200 MH $562, 400
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A company manufacturing two products furnishes the following data Annual output Product Output units Machine Hours Purchase Orders Machine set-ups A 5000 20000 160 20 B 60000 120000 384 44 Total 65000 140000 544 64 The annual overheads are as under. Rs Volume related activity costs 4,50,000 Set up related costs 9,20,000 Purchase related costs 5,18,000 Total 1,888,000 You are required to calculate the overheads cost per unit of each product A and B based on Activity based costing method.