Required: 1. Determine the overhead application rate for each department 2. Determine the total cost per unit of the two types of cakes (10-inch and 8-inch glazed)
Q: A large retailer such as Walmart possesses power over smaller suppliers. In theory, Walmart could…
A: 1.Walmart is a large retailer that possesses power over smaller suppliers. In theory, Walmart could…
Q: On September 12, Pina Company agreed to an exchange of assets with another company. Pina gave up a…
A: When assets are exchanged an entry is passed by both entities. The entry must record accumulated…
Q: Avery, an unmarried taxpayer, had the following income items: $ 42,600 5,340 Salary Net income from…
A: Introduction All of the earnings made throughout the period of the year are added up to create the…
Q: On May 10, a company issued for cash 1,600 shares of no-par common stock (with a stated value of $3)…
A: Common stock and preferred stock are two different types of shares issued by the entity for raising…
Q: Explain estimated fixed assets
A: Introduction:- Assets are resources (property) presented in the balance sheet because for it an…
Q: Colonial Corporation uses the retail method to value its inventory. The following information is…
A: The term "cost of goods sold" (COGS) refers to the expenses that are incurred directly in the…
Q: What is the total cost of the initial tableau by NWC Rule? DESTINATION SOURCE DEMAND O 3060 O 3075 O…
A: NORT WEST CORNER RULE Nortg West Corner rule is One of the Important Method of Solving…
Q: Cash flow from operations worked out under direct method and indirect method: options: a. will be…
A: Answer:- Cash flow from operations:- One of the cash flow statement's three categories of activity…
Q: 3. Preparing simple balance sheets Renata is the owner of an orange factory. The following…
A: BALANCE SHEETS Balance sheet is one of the Important Financial Statement of the Company.…
Q: es two processes to manufacture desks. The following details are applicable to Process 2 for March…
A: Process Costing - When producing large quantities of identical goods, process costing is employed…
Q: Compute for the Current Assets Compute for the Non-current Assets Compute for the Current…
A: Non-current assets are those assets whose life is more than one year. These assets include both…
Q: Allonby Foods processes frozen meals for sale in grocery and other retail outlets. Two versions are…
A: The following information has been extracted from the given question, Workings- 1. Calculation of…
Q: Refer to the following adjusted trial balance. Woods Company Adjusted Trial Balance For the Year…
A: An asset is a resource with economic value that a person, company, or nation owns or manages in…
Q: In a recent annual report, Bonita Inc. reported beginning inventory of $1,400 million and ending…
A: Inventory turnover ratio :Inventory turnover ratio indicates the demand for the product &…
Q: Lacy is a single taxpayer. In 2022, her taxable income is $44,400. What is her tax liability in each…
A: Answer:- Income tax meaning:- The word "income tax" refers to a category of tax that governments…
Q: Sheffield Company has 2,080 pounds of raw materials in its December 31, 2021, ending inventory.…
A: In this question, we need to prepare direct materials budget for the month ending January 31, 2022.…
Q: Use the following table to answer the question. Periods 5% 6% 7% 10% 1 0.95238 0.94340 0.93458…
A: Calculation of the present value of 36,100 to be received six years, the market rate is 5%…
Q: Which of the following is relevant to Limited's decision to accept a special order at a lower price?
A: The correct answer is: (A) the shipping costs to the customer The shipping costs to the customer are…
Q: What is the cycle time or a production will be made how often, that is associated with the EPQ from…
A: Economic production Quantity :— It is the number of quantity at which total cost is minimum. At this…
Q: K92
A: Relevant costs is the costs that will only be incurred as a result of specific decision. It is also…
Q: When a firm is expensing an item faster on the tax return than on the financial statements, a…
A: A deferred tax liability is an amount of tax that the company owes to the government but has not yet…
Q: 10. Debt Ratio Dave's Guitar Shop is thinking about adding an addition onto their building for more…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: When preparing a bank deposit which of the following is a best practice? Select one: a.…
A: Bank Deposit: It is the money deposited into bank by customer into its bank account. Bank uses that…
Q: 1.4 Use the information given below to determine the cost (as a percentage, expressed to two decima…
A: When calculating the cost in the percentage from given by supplier in order to receive cash and…
Q: For Pharoah Company, actual sales are $1,100,000, and break-even sales are $792,000. (a) Compute the…
A: Break even sale is the sale whereby the entity is covering its costs but not earning any profits…
Q: o processes to manufacture desks. The following details are applicable to Process 2 for March 2022:…
A: Process Costing - Process costing is an accounting technique for tracking and allocating the direct…
Q: With respect to changes in IT auditing today, which of the following is NOT true? a. IT governance,…
A: Audit refers to the process of verification and examination of the economic or financial…
Q: 1.) Probability Concepts A sales manager estimates that the mean expected sales volume of a proposed…
A: #Steps to find probability: -Finding Z score as (Individual Data value - Mean) /Standarddeviation…
Q: The maturity value of a O plus the interest plus nothing else
A: Note receivable is the amount that has been issued to the company for the future cash benefit for…
Q: ces Required information [The following information applies to the questions displayed below.] A…
A: The money that still comes in after an initial time and resource commitment has been made is known…
Q: Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas…
A: Introduction:- Computation of the cash received by the company received. Cash received
Q: Overheads cost analysis R Production 4 400 000 Materials handling 1 000 000 Set-up 1 050 000…
A: Overhead costs are operating costs of business which can not be directly traced to a particular unit…
Q: Prepare a brief report advising management on the relative merits of each project. (
A: When the management regarding the decision it is important to understand that the relative major…
Q: On January 1, 2024, Aaron Unlimited issues 15%, 15-year bonds payable with a face value of $230,000.…
A: Bond is an financial instruent which is issued to raise funds. Bond is treated as debt and form part…
Q: Tamarisk, Inc. reported the following information for 2022. Assets Cash Accounts receivable…
A: A cash flow statement indicates cash inflow and cash outflow information for a particular time…
Q: Rory Company has an old machine with a book value of $83,000 and a remaining five-year useful life.…
A: If there is increase in income by replacing, then the old machine should be replaced. If there is…
Q: RR Records Inc. acquired all of DD Studios’ voting shares on January 1, 20x1, for P280,000. RR’s…
A: Retained earnings is the amount of income that is taken from the amount of profit earned by the…
Q: Choose the response that correctly completes the following sentence about an individual partner's…
A: A partner's outside basis can't be less than zero. It is used to apply the basis limitation to…
Q: The party to which legal title and management responsibilities are initially given in a trust…
A: The correct answer is: (1) Trustee The Trustee is the party to which legal title and management…
Q: conducting an audit and have obtained the following figures with respect to sales and accounts…
A: The audit procedures that will be applied for verifying the valencies of account receivables will…
Q: Prepare a PLANNED BUDGET for the month of December 2022 for your imaginary company assuming any…
A: Planned budget(1000 units) Sales. 100000(sale price=100) Variable expenses.…
Q: GIRAFE Ltd. as of June 30, 2022, was $5.564 million. The corporation wrote down a $450,000 bad debt…
A: When the sales are made by the corporation on the credit , payment becomes to you and that needs to…
Q: QS 12-3 (Algo) Indirect: Computing cash flows from operations LO P2 Bryant Company reports net…
A: Cash flow statement can be prepared in two methods 1. Direct method 2. Indirect method
Q: Your answer is partially correct. Wayne Company is considering a long-term investment project called…
A: Annual Rate of Return refers to the actual rate of return earned in the year from the investment…
Q: Which of the following activity will NOT show up on cash flow from operating activities? O Purchase…
A: Cash flow statement records the inflow and outflow of cash. Cash flow statement includes cash flow…
Q: 6. MBIEN This machinery was acquired by trading in used machinery. Facts concerning the trade- in…
A: Journal entry is a primary entry that records the financial transactions initially. The transactions…
Q: The auditor worked for this client for years. But before accepting or continuing with the client…
A: There are many factors which auditor should consider before accepting the auditor. They are :-…
Q: Required: • prepare journal entries • prepare ledger
A: Ledger: It is a collection of account where all business transactions are recorded. Ledger contain…
Q: draw income expenditure account of school for the year closing June 30, 2021 (B) Draw the school…
A: Expenditure RS Income RS To Salary to teachers 1,200,000 By Grant received 600,000 To utilities…
Q: The following trial balance, prepared by the bookkeeper of Mason Company, does not balance. Mason…
A: The trial balance is prepared using the final balance of the ledger accounts. The debit and credit…
Step by step
Solved in 3 steps
- A manufacturing company has two service and two production departments. Building Maintenance and Factory Office are the service departments. The production departments are Assembly and Machining. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The building maintenance department services all departments of the company, and its costs are allocated using floor space occupied, while factory office costs are allocable to Assembly and Machining on the basis of direct labor hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.A manufacturing company has two service and two production departments. Human Resources and Machine Repair are the service departments. The production departments are Grinding and Polishing. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The human resources department services all departments of the company, and its costs are allocated using the numbers of employees within each department, while machine repair costs are allocable to Grinding and Polishing on the basis of machine hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.Minor Co. has a job order cost system and applies overhead based on departmental rates. Service Department 1 has total budgeted costs of 168,000 for next year. Service Department 2 has total budgeted costs of 280,000 for next year. Minor allocates service department costs solely to the producing departments. Service Department 1 cost is allocated to producing departments on the basis of machine hours. Service Department 2 cost is allocated to producing departments on the basis of direct labor hours. Producing Department 1 has budgeted 8,000 machine hours and 12,000 direct labor hours. Producing Department 2 has budgeted 2,000 machine hours and 12,000 direct labor hours. What is the total cost allocation from the two service departments to Producing Department 1? a. 173,600 b. 140,000 c. 134,400 d. 274,400
- Crystal Scarves Co. produces winter scarves. The scarves are produced in the Cutting and Sewing departments. The Maintenance and Security departments support these production departments, and allocate costs based on machine hours and square feet, respectively. Information about each department is provided in the following table: Using the sequential method and allocating the support department with the highest costs first, allocate all support department costs to the production departments. Then compute the total cost of each production department.Overhead Rates, Unit Costs Folsom Company manufactures specialty tools to customer order. There are three producing departments. Departmental information on budgeted overhead and various activity measures for the coming year is as follows: Currently, overhead is applied on the basis of machine hours using a plantwide rate. However, Janine, the controller, has been wondering whether it might be worthwhile to use departmental overhead rates. She has analyzed the overhead costs and drivers for the various departments and decided that Welding and Finishing should base their overhead rates on machine hours and that Assembly should base its overhead rate on direct labor hours. Janine has been asked to prepare bids for two jobs with the following information: The typical bid price includes a 35% markup over full manufacturing cost. Round all overhead rates to the nearest cent. Round all bid prices to the nearest dollar. Required: 1. Calculate a plantwide rate for Folsom Company based on machine hours. What is the bid price of each job using this rate? 2. Calculate departmental overhead rates for the producing departments. What is the bid price of each job using these rates?Primera Company produces two products and uses a predetermined overhead rate to apply overhead. Primera currently applies overhead using a plantwide rate based on direct labor hours. Consideration is being given to the use of departmental overhead rates where overhead would be applied on the basis of direct labor hours in Department 1 and on the basis of machine hours in Department 2. At the beginning of the year, the following estimates are provided: Actual results reported by department and product during the year are as follows: Required: 1. Compute the plantwide predetermined overhead rate and calculate the overhead assigned to each product. 2. Calculate the predetermined departmental overhead rates and calculate the overhead assigned to each product. 3. Using departmental rates, compute the applied overhead for the year. What is the under- or overapplied overhead for the firm? 4. Prepare the journal entry that disposes of the overhead variance calculated in Requirement 3, assuming it is not material in amount. What additional information would you need if the variance is material to make the appropriate journal entry?
- Antolini Enterprises produces mens sports coats that are sold by popular department stores. Each retail order is treated as a job that accumulates materials, labor, and overhead costs for a batch of sports coats. Management has obtained data on the labor costs for four selected jobs over a six-month period. Each selected job represents a similar style and size of sports coat. The data are as follows: a. Determine the direct labor cost per unit for each job. b. Interpret the trend in per-unit labor cost. c. Determine the direct labor hours per sports coat. d. Interpret what may be happening with Job 192.Dublin Brewing Co. uses the process cost system. The following data, taken from the organizations books, reflect the results of manufacturing operations during October: Production Costs Work in process, beginning of period: Costs incurred during month: Production Data: 13,000 units finished and transferred to stockroom Work in process, end of period, 2,000 units one-half completed Required: Prepare a cost of production summary for October.Vargas, Inc., produces industrial machinery. Vargas has a machining department and a group of direct laborers called machinists. Each machinist is paid 25,000 and can machine up to 500 units per year. Vargas also hires supervisors to develop machine specification plans and to oversee production within the machining department. Given the planning and supervisory work, a supervisor can oversee three machinists, at most. Vargass accounting and production history reveal the following relationships between units produced and the costs of direct labor and supervision (measured on an annual basis): Required: 1. Prepare two graphs: one that illustrates the relationship between direct labor cost and units produced, and one that illustrates the relationship between the cost of supervision and units produced. Let cost be the vertical axis and units produced the horizontal axis. 2. How would you classify each cost? Why? 3. Suppose that the normal range of activity is between 2,400 and 2,450 units and that the exact number of machinists is currently hired to support this level of activity. Further suppose that production for the next year is expected to increase by an additional 400 units. How much will the cost of direct labor increase (and how will this increase be realized)? Cost of supervision?
- Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of direct labor and direct materials per unit for the year are as follows: The standard price paid per pound of direct materials is 1.60. The standard rate for labor is 8.00. Overhead is applied on the basis of direct labor hours. A plantwide rate is used. Budgeted overhead for the year is as follows: The company expects to work 12,000 direct labor hours during the year; standard overhead rates are computed using this activity level. For every small stapler produced, the company produces two regular staplers. Actual operating data for the year are as follows: a. Units produced: small staplers, 35,000; regular staplers, 70,000. b. Direct materials purchased and used: 56,000 pounds at 1.5513,000 for the small stapler and 43,000 for the regular stapler. There were no beginning or ending direct materials inventories. c. Direct labor: 14,800 hours3,600 hours for the small stapler and 11,200 hours for the regular stapler. Total cost of direct labor: 114,700. d. Variable overhead: 607,500. e. Fixed overhead: 350,000. Required: 1. Prepare a standard cost sheet showing the unit cost for each product. 2. Compute the direct materials price and usage variances for each product. Prepare journal entries to record direct materials activity. 3. Compute the direct labor rate and efficiency variances for each product. Prepare journal entries to record direct labor activity. 4. Compute the variances for fixed and variable overhead. Prepare journal entries to record overhead activity. All variances are closed to Cost of Goods Sold. 5. Assume that you know only the total direct materials used for both products and the total direct labor hours used for both products. Can you compute the total direct materials and direct labor usage variances? Explain.Christmas Timber, Inc., produces Christmas trees. The trees are produced through a cutting and pruning process. Machine maintenance and janitorial labors are performed throughout the production process by nonproduction employees. Maintenance and janitorial costs are allocated based on machine hours used and the number of trees in each department, respectively. The company estimates that the cutting and pruning areas typically have about 20 and 60 trees, respectively, in them at one time. The company also estimates that the cutting process requires about 9 times as many machine hours as the pruning process. The total costs of each department are as follows: Using the direct method of support department cost allocation, determine the total cost of each production department after allocating all support costs to the production departments.The management of Gwinnett County Chrome Company, described in Problem 1A, now plans to use the multiple production department factory overhead rate method. The total factory overhead associated with each department is as follows: Instructions 1. Determine the multiple production department factory overhead rates, using direct labor hours for the Stamping Department and machine hours for the Plating Department. 2. Determine the product factory overhead costs, using the multiple production department rates in (1).