Records at Hal's Accounting Services show the following costs for year 1. Direct materials and supplies Employee conta Total overhead 40,000 2,900,000 1,300,000 Production was 25,000 billable hours. Fixed overhead was $700,000. Assuming no change in billeble hours in year 2, direct materials and supplies costs are expected to increase by 10 percent. Direct labor costs are expected to increase by 5 percent. Variable overhead per billable hour is expected to remain the same, but fixed overhead is expected to increase by 5 percent. Required: a. Year 2 production is expected to be 20,000 billable hours. What are the estimated direct materials, direct labor, variable overhead, and fixed overhead costs for year 2? b. Determine the total costs per billable hour for year 1 and year 2. Complete this question by entering your answers in the tabs below. Required A Required B Year 2 production is expected to be 20,000 billable hours. What are the estimated direct materials, direct labor, variable overhead, and fixed overhead costs for year 2? Cost Item Year 2 Cost Direct materials and supplies Direct labor Variable overhead Fixed overhead Total costs

Records at Hal's Accounting Services show the following costs for year 1. Direct materials and supplies Employee conta Total overhead 40,000 2,900,000 1,300,000 Production was 25,000 billable hours. Fixed overhead was $700,000. Assuming no change in billeble hours in year 2, direct materials and supplies costs are expected to increase by 10 percent. Direct labor costs are expected to increase by 5 percent. Variable overhead per billable hour is expected to remain the same, but fixed overhead is expected to increase by 5 percent. Required: a. Year 2 production is expected to be 20,000 billable hours. What are the estimated direct materials, direct labor, variable overhead, and fixed overhead costs for year 2? b. Determine the total costs per billable hour for year 1 and year 2. Complete this question by entering your answers in the tabs below. Required A Required B Year 2 production is expected to be 20,000 billable hours. What are the estimated direct materials, direct labor, variable overhead, and fixed overhead costs for year 2? Cost Item Year 2 Cost Direct materials and supplies Direct labor Variable overhead Fixed overhead Total costs

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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