FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Pinnacle Corp, budgeted $270,880 of overhead cost for the current year. Actual overhead costs for the year were $231,160. Pinnacle's plantwide allocation base, machine hours, was budgeted at 52,180 hours. Actual machine hours were 59,080. A total of 97,530 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is: Oa. $4.43 per machine hour Ob. $2.78 per machine hour Oc. $2.37 per machine hour Od. $5.19 per machine hourarrow_forwardPinnacle Corp. budgeted $267,020 of overhead cost for the current year. Actual overhead costs for the year were $244,310. Pinnacle's plantwide allocation base, machine hours, was budgeted at 49,250 hours. Actual machine hours were 40,080. A total of 104,080 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is: a.$5.42 per machine hour b.$2.57 per machine hour c.$2.35 per machine hour d.$4.96 per machine hourarrow_forwardJefferson Company expects to incur $572,760 in manufacturing overhead costs during the current year. Other budget information follows: Direct labor hours Machine hours Department A 16,650 8,880 Required: a. Use direct labor hours as the cost driver to compute the allocation rate. Determine the amount of budgeted overhead cost for each department. b. Use machine hours as the cost driver to compute the allocation rate. Determine the amount of budgeted overhead cost for each department. c. Assume that Department A manufactured a product that required 160 direct labor hours and 85 machine hours. If overhead is allocated based on direct labor hours, how much overhead would be allocated to this product? d. Assume that Department A manufactured a product that required 160 direct labor hours and 85 machine hours. If overhead is allocated based on machine hours, how much overhead would be allocated to this product? Req A and B Req C and D Department B Department C 5,550 22, 200 11,100 13,320…arrow_forward
- Munabhaiarrow_forwardYosko Company expects to produce 2,070 units in January that will require 4,140 hours of direct labor and 2,230 units in February that will require 4,460 hours of direct labor. Yosko Company budgets $6 per unit for variable manufacturing overhead; $2,100 per month for depreciation; and $10,800 per month for other fixed manufacturing overhead costs. Prepare Yosko Company's manufacturing overhead budget for January and February, including the predetermined overhead allocation rate using direct labor hours as the allocation base. (Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing overhead.) VOH cost per unit Yosko Company Manufacturing Overhead Budget Two Month Ended January 31 and February 28 Budgeted VOH Budgeted FOH Depreciation Other FOH costs Total budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate January February Totalarrow_forwardThe manufacturing overhead budget for Pina Colada Company contains the following items. Variable costs (b) Indirect materials Indirect labor Maintenance expense Manufacturing supplies Total variable Variable costs Indirect materials Indirect labor Maintenance expense Manufacturing supplies Total variable $21,120 Total cost 11,520 $ 9,600 5,760 $48,000 The budget was based on an estimated 1,920 units being produced. During the past month, 1,440 units were produced, and the following costs incurred. $21,600 13,000 7,900 4,800 Fixed costs $47,300 Supervision Inspection costs Insurance expense Depreciation Total fixed Fixed costs Supervision Inspection costs Insurance expense Depreciation $16,300 Total fixed 1,000 1,900 14,400 $33,600 $17,700 1,200 2,100 14,100 How much should have been spent during the month for the manufacture of the 1,440 units? $35,100arrow_forward
- Jackson Company's expected activity level for next year is 100,000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs: Variable Indirect $140,000 materials Indirect labor 200,000 Factory supplies B) $360,000. C) $458,000. 20,000 D) $408,000. Depreciation $60,000 Taxes Supervision 10,000 A flexible budget prepared at the 80,000 machine hours level of activity would show total manufacturing overhead costs of how much? OA) $384,000. 50.000 Fixedarrow_forwardThe total factory overhead for Bardot Marine Company is budgeted for the year at $930,000, divided into two departments: Fabrication, $636,000, and Assembly, $294,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require three direct labor hours in Fabrication and four direct labor hours in Assembly. The bass boats require one direct labor hour in Fabrication and three direct labor hours in Assembly. Each product is budgeted for 6,000 units of production for the year. When required, round all per unit answers to the nearest cent. a. Determine the total number of budgeted direct labor hours for the year in each department. Fabrication ______direct labor hours Assembly ______direct labor hours b. Determine the departmental factory overhead rates for both departments. Fabrication $ ____ per dlh Assembly $ ____ per dlh c. Determine the factory overhead allocated per unit for each product using the department factory overhead…arrow_forwardChampion Company manufacturing overhead budget for the first quarter of 2016 contained the following data: Variable Costs Indirect materials $40,000 Indirect labor 24,000 Utilities 20,000 Maintenance 12,000 Fixed Costs Supervisor’s salary $80,000 Depreciation 16,000 Property taxes 8,000 Actual variable costs for the first quarter were: Indirect materials $37,200 Indirect labor 26,400 Utilities 21,000 Maintenance 10,600 Actual fixed costs were as expected except for property taxes which were $9,000. All costs are considered controllable by the department manager except for the supervisor’s salary. Instructions Prepare a manufacturing overhead responsibility performance report for the first quarterarrow_forward
- The total factory overhead for Big Light Company is budgeted for the year at $1,127,280. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 14,200 units. Each night light requires 3 hours of direct labor. Desk lamps are budgeted for 9,500 units. Each desk lamp requires 2 hours of direct labor. a Determine the total number of budgeted direct labor hours for the year.fill in the blank 1 direct labor hours b Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places.$fill in the blank 2 per direct labor hour c Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b). Round your answers to two decimal places. Night Lights $fill in the blank 3 per unit Desk Lamps $fill in the blank 4 per unitarrow_forwardPrepare a flexible production budget for the year ending December 31 for Cedar Jeans Company using production levels of 16,000, 18,000, and 20,000 units produced. The following additional information is necessary to complete the budget: Variable costs: Direct labor ($6.00 per unit) Direct materials ($8.00 per unit) Variable manufacturing costs ($2.50 per unit) Fixed costs: Supervisor's salaries $80,000 Rent 12,000 Depreciation on equipment 24,000arrow_forwardHaroot Company's master budget shows that the planned activity level for next year is expected to be 20,000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: Indirect labour Factory supplies Indirect materials Depreciation on factory building Total manufacturing overhead $45,000 4,000 21,000 15,000 $85.000 If the company operates at 21,000 machine hours, how much is allowed on a flexible budget for manufacturing overhead costs? a. $89,250 b. 73,500 $88,500 C. d. $85,000arrow_forward
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