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…
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