Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead Total costs Standard Predetermined overhead rate 29,100 17,460 21,825 $ 582,000 349,290 Enhanced 9,700 11,640 21,825 $ 873,000 742,850 Total % of direct labor cost 38,800 29,100 43,650 Required: Compute the predetermined overhead rate assuming that Redfern Audio uses direct labor costs to allocate overhead costs. Note: Round your answer to 2 decimal places. $ 1,455,000 1,091,250 750,780 $ 3,297,030

Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead Total costs Standard Predetermined overhead rate 29,100 17,460 21,825 $ 582,000 349,290 Enhanced 9,700 11,640 21,825 $ 873,000 742,850 Total % of direct labor cost 38,800 29,100 43,650 Required: Compute the predetermined overhead rate assuming that Redfern Audio uses direct labor costs to allocate overhead costs. Note: Round your answer to 2 decimal places. $ 1,455,000 1,091,250 750,780 $ 3,297,030

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Sd
Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead Total costs Standard 29,700 17,820 22,275 $ 594,000 356,400 Predetermined overhead rate Enhanced 9,900 11,880 22,275 $ 891,000 757,350 Total Required: Compute the predetermined overhead rate assuming that Redfern Audio uses direct labor costs to allocate overhead costs. Note: Round your answer to 2 decimal places. % of direct labor cost 39,600 29,700 44,550 $ 1,485,000 1,113,750 730, 620 $ 3,329,370
Vaughn Company manufactures two products, Mini A and Maxi B. Vaughn's overhead costs consist of setting up machines- $890,000; machining- $2,030,000; and inspecting- $640,000. Information on the two products is: Mini A Мaxi В Direct labour hours 14,000 26,000 Machine setups 700 500 Machine hours 21,000 23,000 Inspections 700 600 Overhead applied to Maxi B using traditional costing and direct labour hours is
s
Gibson Company produces commercial gardening equipment. Since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. The costs and cost drivers associated with the four overhead activity cost pools follow: Cost Cost driver Unit Level $50,600 Req A and B 2,300 labor hours. Production of 890 sets of cutting shears, one of the company's 20 products, took 210 labor hours and 9 setups and consumed 10 percent of the product-sustaining activities. Complete this question by entering your answers in the tabs below. Req C a. Allocated cost b. Allocated cost Activities Batch Level $ 21,160 46 setups Required a. Had the company used labor hours as a companywide allocation base, how much overhead would it have allocated to the cutting shears? b. How much overhead is allocated to the cutting shears using activity-based costing? c. Compute the overhead cost per unit for cutting shears first using activity-based costing and then using…
Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity $138,000 Number of setups 10,200 Number of orders 92,400 Machine hours 18,480 Receiving hours phones with the following expected activity demands: Setting up equipment Ordering materials Machining Receiving Silven produces two models of cell Model X 5,000 80 200 6,600 385 Units completed Number of setups Number of orders Machine hours Receiving hours Required: Model Y 10,000 40 400 4,950 770 120 600 11,550 1,155
Advanced Miniature Development manufactures computer graphics cards (GPUs). Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 4,160 GPUs were as follows: Cost Driver Direct materials Direct labor Factory overhead Instructions Determine the: Each GPU requires 0.5 hour of direct labor. f. Standard Costs 110,000 lbs. at $6.30 2,080 hours at $15.80 Rates per direct labor hr., based on 100% of normal capacity of 2,000 direct labor hrs.: Variable cost, $4.25 Fixed cost, $6.00 a. direct materials price variance b. direct materials quantity variance c. total direct materials cost variance d. direct labor rate variance direct labor time variance total direct labor cost variance g. the variable factory overhead controllable variance h. fixed factory overhead volume variance i. total factory overhead cost variance. Actual Costs 115,000 lbs. at $6.50 2,000 hours at $15.40 $8,200 variable cost $12,000 fixed cost
Dinesh Bhai
Hickory Company manufactures two products—13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all $829,500 of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 246,000 12,000 MHs Machine setups Number of setups $ 137,500 250 setups Product design Number of products $ 89,000 2 products General factory Direct labor-hours $ 357,000 14,400 DLHs Activity Measure Product Y Product Z Machine-hours 7,500 4,500 Number of setups 40 210 Number of products 1 1 Direct labor-hours 8,500 5,900 Foundational 7-12 (Algo) 12. Using the ABC system, what percentage of the Machining costs is assigned to Product…
Rundle Company produces commercial gardening equipment. Since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. The costs and cost drivers associated with the four overhead activity co pools follow: Cost Cost driver Req A and B Unit Level $ 25,200 Req C a. Allocated cost b. Allocated cost Production of 880 sets of cutting shears, one of the company's 20 products, took 130 labor hours and 10 setups and consumed 15 percent of the product-sustaining activities. Required 8. Had the company used labor hours as a companywide allocation base, how much overhead would it have allocated to the cutting shears? Complete this question by entering your answers in the tabs below. 1,200 labor hours b. How much overhead is allocated to the cutting shears using activity-based costing? c. Compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 880…
Carla Vista Industries has three activity cost pools and two products. It expects to produce 2,700 units of Product SZ09 and 1,400 of Product NZ16. Having identified its activity cost pools and the cost drivers for each pool, Carla Vista accumulated the following data relative to those activity cost pools and cost drivers. question: Assign the overhead cost to the two products: SZ09$? and NZ16$?
Genious Corporation implemented activity-based costing several years ago and uses it for its external financial reports. The company has four activity cost pools, which are listed below. Activity Cost Pool Activity Measure Estimated Overhead Cost Machine related Machine Hours $90,000 Purchase orders Number of orders $126,000 Machine setups Number of Setups $200,000 General factory Number of labor hrs $60,000 Expected Activity 5,000 Mhs 2,800 orders 10,000 setups 4,000 Dlhs Manufacturing overhead cost was applied to production. Actual activity during the year was as follows: Activity Cost Pool Machine related Purchase orders Machine setups General factory Actual Activity 10,500 Mhs 800 orders 1,500 setups 8,000 Dlhs It is expected that the company will produce 62,500 units. Compute the activity rate for each activity. Compute the per unit cost for overhead