Quality Maintenance Machining Assem bly Total Control Budgeted overhead costs before allocation P350,000 P200,000 P400,000 P 300,000 P1,250,000 Budgeted machine hours 50,000 25,000 50,000 Budgeted direct labor hours 25,000 Budgeted hours of service: Quality Control Maintenance 21,000 35,000 40,000 7,000 7,000 12,000 10,000 18,000
Q: Comans Corporation has two production departments, Milling and Customizing. The company uses a…
A: Fixed manufacturing overhead cost of Customizing Department = $64,400 Number of direct labor hours…
Q: A company has traditionally allocated its overhead based on machine hours but had collected this…
A: Activity-based costing is used to distribute the overhead. in this overheads are allocated on the…
Q: Rabia Company has two support departments, Human Resources and Maintenance, and two producing…
A: Joint cost is the cost allocation process where the joint costs of the organization are allocated…
Q: The management of Winterroth Corporation would like to investigate the possibility of basing its…
A: Predetermined overhead rate refers to the overhead rate determined by dividing the Estimated…
Q: Mahon Corporation has two production departments, Casting and Customizing. The company uses a…
A: Applied overhead is recorded as a kind of direct overhead charge in the cost-accounting technique.…
Q: Comans Corporation has two production departments, Milling and Customizing. The company uses a…
A: Cost accounting is broadly used by the management in order to make great business decisions. Under…
Q: Using the step-down method, allocate the service department costs to the consuming departments. Then…
A: Solution:- Allocate the service department costs to the consuming departments. Then compute…
Q: White Company has two departments, Cutting and Finishing. The company uses a job-order costing…
A: Req 1.Pre-determined Overheads rate for deptt has been computed as above.
Q: White Company has two departments, Cutting and Finishing. The company uses a job-order costing…
A: Overhead means the cost incurred indirect in factory for the production of goods. Job costing means…
Q: White Company has two departments, Cutting and Finishing. The company uses a job-order costing…
A: The predetermined overhead rate is calculated as total manufacturing overhead divided by the…
Q: Camm Corporation has two manufacturing departments--Forming and Assembly. The company used the…
A: Estimated fixed manufacturing overhead cost per MH = $4,600 / 2,000 = $2.30
Q: he Oliver Company manufactures products in two departments: Mixing and Packaging. The company was…
A: Estimated overhead costs/Estimated allocation base = Predetermined OH allocation rate Predetermined…
Q: 1. Under the direct method of allocation, the amount of Custodial Services cost allocated to the…
A: 1. Calculate the amount of Custodial services cost allocated to the cutting department:- Custodial…
Q: Assume that department C applies factory overhead based on units produced with an estimate of 5,000…
A: Calculation of ratio to allocate cost Using step method, Cost allocation of Maintenance department…
Q: Eisentrout Corporation has two production departments, Machining and Customizing. The company uses a…
A: Predetermined fixed overhead rate (Machining) = Estimated total fixed manufacturing overhead cost /…
Q: Garza Corporation has two production departments, Casting and Customizing. The company uses a…
A: Estimated Total Manufacturing Overhead = Total Fixed Manufacturing Cost + Total Variable…
Q: Using the reciprocal method, the applied factory overhead of the assembly department if it used…
A: Factory overhead means the cost which is incurred in factory but not directly linked with…
Q: a) How much overhead would be assigned to each unit under the traditional allocation method? b) How…
A: NOTE: As per our guidelines, we are supposed to answer 3 sub-parts only. Please repost the…
Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…
A: The standard amount of factory overhead cost assigned to each unit of production is known as the…
Q: White Company has two departments, Cutting and Finishing. The company uses a job-order costing sys-…
A: Predetermined Overhead rate =(Estimated Manufacturing Overhead/Base) Predetermined Overhead rate:…
Q: XYZ has two production departments, Forming and Finishing. The company uses a job-order costing…
A: The cost of a particular job for which the finished goods are produced is determined using the…
Q: Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single…
A: The corporation face difficulty in distributing the indirect costs incurred in operations, so they…
Q: A company has traditionally allocated its overhead based on machine hours but had collected this…
A: Overhead unit under the traditional allocation method = Total Overhead costs / Total Machine Hours…
Q: A company has traditionally allocated its overhead based on machine hours but had collected this…
A: Total machine hours for Product 1 = 4*750 = 3,000 hours Total machine hours for Product 2 = 3*1500 =…
Q: Corsair uses an activity-based system and classifies overhead into three activity pools: Setup,…
A: Part D) Direct Manufacturing Labour Budget: First, we need to calculate the Number of Production…
Q: A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs…
A: Solution: Total estimated overhead costs = $85,557 + $67,616 = $153,173 Budgeted direct labor hours…
Q: Assume that department C applies factory overhead based on units produced with an estimate of 5,000…
A: Factory overhead refers to the costs or expenses incurred by an organization while the manufacturing…
Q: Eisentrout Corporation has two production departments, Machining and Customizing. The company uses a…
A: Estimated total manufacturing overhead for the Machining Department = Total fixed manufacturing…
Q: JimBob Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs.…
A: Solution- Manufacturing OH allocated to Job 603 Assembly OH (35*10)…
Q: A company has traditionally allocated its overhead based on machine hours but had collected this…
A: Total overhead = 11,400+217,800+27,450 = $256,650 Machine hours per unit of product 1 = 4 Total…
Q: Karvel Corporation uses machine hours as the basis for allocating manufacturing overhead costs to…
A: Predetermined overhead: =Estimated overhead/ Estimated machine hours Over or under applied: =Actual…
Q: laybrooks Corporation has two manufacturing departments--Casting and Assembly. The company used the…
A: Predetermined overhead rate:-These rate is calculated by dividing the activity base with the total…
Q: Using the reciprocal method, the applied factory overhead of the assembly department if it used…
A: Factory overhead means the cost which is incurred in factory but not directly linked with…
Q: Ahlheim Corporation has two production departments, Forming and Assembly. The company uses a…
A: Computation of the amount of overhead applied in both department is as follows:
Q: lue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single…
A: The overgead expenses are those expenses that are incurred to run the business but the overhead…
Q: Comans Corporation has two production departments, Milling and Customizing. The company uses a…
A: Option B. $3,558
Q: A company has traditionally allocated its overhead based on machine hours but had collected this…
A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…
Q: Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single…
A: Given information is: Estimated overhead in Painting department = $243300 Estimated direct labour…
Q: Rex Industries has identified three different activities as cost drivers: machine setups, machine…
A: The overhead rate is calculated as ratio of overhead activity and annual usage.
Q: Ultimate Manufacturers has three production departments (assembling, finishing and packaging) and…
A: Overheads costs -These are indirect cost incurred in the business entities. Overhead cost includes:…
Q: John Company has two service departments, Maintenance and Human Resources. John Company also has two…
A: Total cost is the overall cost incurred in the process of manufacturing the goods during the…
Q: Eisentrout Corporation has two production departments, Machining and Customizing. The company uses a…
A: Fixed predetermined overhead rate for the Machining Department = Total fixed manufacturing overhead…
Q: Columbo Corporation has two production departments, Forming and Finishing. The company uses a…
A: Overhead means an expenses which is not direclty linked with production or sale but indirectly…
Q: the company marks up its manufacturing costs by 10% then the selling price for Job A319 would be…
A: Calculation of overhead rates Fixed manufacturing overhead rate (Milling department) = Fixed…
Q: White Company has two departments, Cutting and Finishing. The company uses a job-order costing…
A: Pre-determined overhead rate is the rate that is usually computed by the entity for the purpose of…
Q: t the beginning of the year, Glaser Company estimated the following: Assembly Testing Department…
A: Manufacturing overhead means the expense incurred in factory which is not directly linked with…
Q: Required:1. Compute the plantwide predetermined overhead rate and calculate the overhead assigned…
A: I am answering the first three sub-parts of the question as per bartleby guidelines. Please…
Q: White Company has two departments, Cutting and Finishing. The company uses a job-order costing…
A: Overhead rate is computed by dividing the total overheads by the predetermined basis which usually…
Q: Ultimate Manufacturers has three production departments (assembling, finishing and packaging) and…
A: Production Departments Assembling Finishing Packaging Budgeted Overhead Production…
Q: The management of Winterroth Corporation would like to investigate the possibility of basing its…
A: Overhead costs are the cost which are indirectly involved production process and cannot be directly…
Using the direct method, the total amount of
If NUBD Co. uses the step-down method of allocating service costs beginning with quality control, the maintenance costs allocated to the Assembly Department would be
If NUBD Co. uses the direct method of allocating service department costs, the total service costs allocated to the assembly department would be
If NUBD Co. uses the reciprocal method of allocating service costs, the total amount of quality control costs (rounded to the nearest peso) to be allocated to the other departments would be
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- The company is considering using a two-stage cost allocation system and wants to assess the effects on reported product profits. The company is considering using Engineering Hours and Users as the allocation base. Additional information follows. Toot! TiX Total Engineering hours 7,650 5,650 13,300 Users 9,500 17,100 26,600 Engineering – hour related administrative cost $ 114,380 User-related administrative cost $…Required information [The following information applies to the questions displayed below.] Data Performance, a computer software consulting company, has three major functional areas: computer programming, information systems consulting, and software training. Carol Bingham, a pricing analyst, has been asked to develop total costs for the functional areas. These costs will be used as a guide in pricing a new contract. In computing these costs, Carol is considering three different methods of the departmental allocation approach to allocate overhead costs: the direct method, the step method, and the reciprocal method. She assembled the following data from the two service departments, information systems and facilities: a. b. Budgeted overhead (base) Information Systems (computer hours) Facilities (square feet) C. Service Departments Information Systems $ 368,000 240 Direct Method Step Method (Information Systems Goes First) Step Method (Facilities Goes First) Reciprocal method Computer…Garrell Corporation is conducting a time-driven activity-based costing study in its Customer Support Department. The company has provided the following data to aid in that study: Time-driven activity rate (cost per unit of activity) Activity cost pool: Receiving Calls Resolving Issues Settling Disputes Cost Object Data: Number of calls received Number of issues resolved Number of disputes settled Customer P 31 17 1 $5.46 $8.58 $13.26 Customer Q 21 10 Required: Using time-driven activity-based costing, determine the total Customer Support Department cost assigned to cach customer.
- Objective: Consider that you are an analyst at Regeneron Pharmaceuticals. You need to decide how to allocate administrative overhead costs to Regeneron's main commercial products (Eylea, Dupixent, Kevzara and Praluent). Determine how to appropriately allocate the costs in the table below to each of the commercial products using an allocation methodology of your choice. Department2019 Annual Operating ExpenseTime spent supporting Commercial productsCommercial$200MM100%IT$100MM25%Facilities$150MM0%Finance$25MM20%Human Resources$75MM10% Use the supporting document Net Product Sales of REGN Products to facilitate your analysis. Provide a written summary of how you allocated the overhead costs to each product in an outline of no more than one page. As a starting point, it's recommended that you revisit the material we covered in Chapter 12. Guidance on calculations:Start off with Net Product Sales of REGN Products. Your objective pertains to 2019 expenses, so you should be reviewing 2019…Two years ago, company scientists developed an alloy with all of the properties of the raw materials used in XL-D that generates no wastewater. Some prototype components using the new material were produced and tested and found to be indistinguishable from the old components in every way relating to their fitness for use. The only difference is that the new alloy is more expensive than the old raw material. The company has been test-marketing the newer version of the component, referred to as XL-C, and is currently trying to decide its fate. Manufacturing of both components begins in the Production Department and is completed in the Assembly Department. No other products are produced in the plant. The following information relates to the two components: Units produced Raw material costs per unit Direct labor-hours per unit-Production Direct labor-hours per unit-Assembly Direct labor rate per hour-all labor Machine-hours per unit-Production Machine-hours per unit-Assembly Testing hours…Angel Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system: Activity Cost Pools (and Activity Measures) Machine related (machine-hours) Estimated Overhead Cost $323,840 $363,000 $258,420 Batch setup (setups) Order size (direct labor-hours) Expected Activity Activity Cost Pools Machine related Product X Product Y Total 5,400 10,800 4,400 7,400 2,400 7,400 12,800 Batch setup 13,200 11,800 Order size Assuming that actual activity turns out to be the same as expected activity, the total amount of overhead cost allocated to Product X would be closest to: (Round your intermediate calculations to 2 decimal places.)
- Required information [The following information applies to the questions displayed below.] Rusties Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost pools: Activity Cost Pool Labor-related Purchase orders Product testing Template etching General factory Activity Cost Pool Labor-related (DLHS) Activity Measure Product A Product B Product C Product D Direct labor-hours Number of orders Number of tests Number of templates Machine-hours Total Overhead Cost Expected Overhead Cost $ 30,115 $ 2,320 $ 6,930 $ 870 $ 65,100 2. The expected activity for the year was distributed among the company's four products as follows: Product A 625 30 190 Expected Activity 1,585 DLHS Product B 160 Purchase orders (orders) 190 Product testing (tests) 55 Template etching (templates) 17 3 General factory (MHS) 3,600 1,700 2,300 Using the ABC data, determine the total amount…Question 1: Support Department cost allocation Computer Horizons Ltd. manufactures computers. The company has two corporate support departments (legal and personnel) in supporting each other and two manufacturing departments, the Laptop department and the Workstation department. The overhead costs of support departments are allocated to the manufacturing departments. Legal hours are used to allocate the cost of legal department, and personnel hours are used to allocate the cost of personnel department. The budgeted overhead costs and cost allocation bases are given below: Support Departments Manufacturing Departments Legal Personnel Laptop Workstation Overhead Costs before any inter department cost allocations $9,055 $4,000 $240,000 $200,000 Support Work provided by Legal Department Legal hours 3 37 Support work provided by Personnel Department Personnel hours 40 30 200 160 Required: Report the total costs of the manufacturing departments (Laptop and Workstation) after the support…Data Performance, a computer software consulting company, has three major functional areas: computer programming, information systems consulting, and software training. Carol Bingham, a pricing analyst, has been asked to develop total costs for the functional areas. These costs will be used as a guide in pricing a new contract. In computing these costs, Carol is considering three different methods of the departmental allocation approach to allocate overhead costs: the direct method, the step method, and the reciprocal method. She assembled the following data from the two service departments, information systems and facilities: Service Departments Production Departments Information Systems Facilities Computer Programming Information Systems Consulting Software Training Total Budgeted overhead (base) $ 368,000 $ 184,000 $ 736,000 $ 874,000 $ 575,000 $ 2,737,000 Information Systems (computer hours) 600 1,200 300 900 3,000 Facilities (square feet) 240 960 600 600…
- Activity-Based Costing and Customer Profitability Schneider Electric manufactures power distribution equipment for commercial customers, such as hospitals and manufacturers. Activity-based costing was used to determine customer profitability. Customer service activities were assigned to individual customers, using the following assumed customer service activities, activity base, and activity rate: Customer Service Activity Activity Base Activity Rate Bid preparation Number of bid requests $400 per request Shipment Number of shipments $ 80 per shipment Support standard items Number of standard items ordered $ 25 per std. item Support nonstandard items Number of nonstandard items ordered $150 per nonstd. item Assume that the company had the following gross profit information for three representative customers: Customer 1 Customer 2 Customer 3 Revenues $120,000 $200,000 $160,000 Cost of goods sold 76,800 110,000 83,200 Gross profit…All applicable Exercises are available with McGraw-Hill’s Connect™Accounting.Cost classifications For each of the following costs, check the column(s) that most likely apply:Cost Variable FixedWages of assembly-line workersDepreciation—plant equipmentGlue and threadShipping costsRaw materials handling costsSalary of public relations managerProduction run setup costsPlant utilitiesElectricity cost of retail storesResearch and development expenseActivity-Based Costing and Customer Profitability Schneider Electric manufactures power distribution equipment for commercial customers, such as hospitals and manufacturers. Activity-based costing was used to determine customer profitability. Customer service activities were assigned to individual customers, using the following assumed customer service activities, activity base, and activity rate: Customer Service Activity Activity Base Activity Rate Bid preparation Number of bid requests $400 per request Shipment Number of shipments $ 80 per shipment Support standard items Number of standard items ordered $ 25 per std. item Support nonstandard items Number of nonstandard items ordered $150 per nonstd. item Assume that the company had the following gross profit information for three representative customers: Customer 1 Customer 2 Customer 3 Revenues $120,000 $200,000 $160,000 Cost of goods sold 76,800 110,000 83,200 Gross profit…