Required: a-1. Use the high-low method to determine the variable element of manufacturing overhead costs per machine-hour. Note: Round your answer to 2 decimal places. a-2. Use the high-low method to determine the fixed element of monthly overhead cost. Note: Round "Variable manufacturing overhead cost" to 2 decimal places. b. Bursa expects machine-hours in May to equal 5,300. Use the cost relationships determined in part a to forecast May's manufacturing overhead costs. Note: Round "Variable manufacturing overhead cost" to 2 decimal places.

Required: a-1. Use the high-low method to determine the variable element of manufacturing overhead costs per machine-hour. Note: Round your answer to 2 decimal places. a-2. Use the high-low method to determine the fixed element of monthly overhead cost. Note: Round "Variable manufacturing overhead cost" to 2 decimal places. b. Bursa expects machine-hours in May to equal 5,300. Use the cost relationships determined in part a to forecast May's manufacturing overhead costs. Note: Round "Variable manufacturing overhead cost" to 2 decimal places.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
Cushing, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. What was last years per unit product cost? a. 1.39 b. 4.40 c. 4.43 d. 3.01
Patterson Company produces wafers for integrated circuits. Data for the most recent year are provided: aCalculated using number of dies as the single unit-level driver. bCalculated by multiplying the consumption ratio of each product by the cost of each activity. Required: 1. Using the five most expensive activities, calculate the overhead cost assigned to each product. Assume that the costs of the other activities are assigned in proportion to the cost of the five activities. 2. Calculate the error relative to the fully specified ABC product cost and comment on the outcome. 3. What if activities 1, 2, 5, and 8 each had a cost of 650,000 and the remaining activities had a cost of 50,000? Calculate the cost assigned to Wafer A by a fully specified ABC system and then by an approximately relevant ABC approach. Comment on the implications for the approximately relevant approach.
Selected cost data for Classic Print Co. are as follows: Estimated manufacturing overhead cost for the year $ 125,000 Estimated direct labor cost for the year 78,125 Actual manufacturing overhead cost for the year 116,000 Actual direct labor cost for the year 67,000 Requirements4 Marks 1.Compute the predetermined overhead allocation rate per direct labor dollar. 2.Prepare the journal entry to allocate overhead costs for the year. 3.Use a T-account to determine the amount of underallocated or overallocated manufacturing overhead. 4.Prepare the journal entry to adjust for the underallocatedor overallocated manufacturing overhead.
Learned Corporation has provided the following information: Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions a. Total product cost b. Total period cost Cost per Unit Cost per Period $ 5.80 $ 4.00 $ 1.60 c. Contribution margin per unit d. Total direct manufacturing cost e. Total indirect manufacturing cost $ 0.70 $ 0.60 Variable administrative expense Fixed selling and administrative expense Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 6,000 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 6,000 units? c. If the selling price is $23.30 per unit, what is the contribution margin per unit sold? Note: Round your answer to 2 decimal places. d. If 7,000 units are produced, what is the total amount of direct manufacturing cost incurred? e. If 7,000 units are produced, what is the total amount of indirect manufacturing…
The following data obtained from XYZ Corporation represent the total overhead cost and the overhead working hours for the past ten weeks: Period Working-Hours Overhead Costs 1 100 12000 2 60 22000 3 20 10000 4 100 33000 5 80 20000 6 60 16000 7 40 14000 8 120 40000 9 80 22000 10 40 11000 Required 1- Plot the relationship between Working-Hours and overhead Costs 2- Use the high-low method to compute the cost function, relating working-hours and overhead costs 3- What is the increase in maintenance costs for each…
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Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Standard Quantity or Hours per Unit of Output Inputs Standard Price or Rate Direct materials $ 7.30 per liter $24.70 per hour $ 6.20 per hour 7.70 liters Direct labor 0.50 hours Variable manufacturing overhead 0.50 hours The company has reported the following actual results for the product for September: Actual output Raw materials purchased Actual cost of raw materials purchased Raw materials used in production 9,900 units 76,500 liters $585,500 76,240 liters 4,650 hours $120,302 $ 23,614 Actual direct labor-hours Actual direct labor cost Actual variable overhead cost Required: a. Compute the materials price variance for September. b. Compute the materials quantity variance for September. c. Compute the labor rate variance for September. d. Compute the labor efficiency variance for September.…
Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Standard Quantity or Hours per Unit of Output Standard Price or Rate Direct materials 8.80 liters $ 8.40 per liter Direct labor 0.40 hours $ 28.70 per hour Variable manufacturing overhead 0.40 hours $ 7.30 per hour The company has reported the following actual results for the product for September: Actual output 11,000 units Raw materials purchased 98,400 liters Actual cost of raw materials purchased $ 854,500 Raw materials used in production 96,830 liters Actual direct labor-hours 4,000 hours Actual direct labor cost $ 120,302 Actual variable overhead cost $ 25,414 Required: a. Compute the materials price variance for September. b. Compute the materials quantity variance for September. c. Compute the labor rate…
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Dirickson Incorporated has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Standard Quantity or Inputs Hours per Unit of Output Standard Price or Rate Direct materials 7.6 ounces $ 9.40 per ounce $ 18.00 per hour $ 5.30 per hour Direct labor 0.10 hours Variable manufacturing overhead 0.10 hours The company has reported the following actual results for the product for July: Actual output 7,600 units Raw materials purchased 63,000 ounces Actual cost of raw materials purchased Raw materials used in production $ 541,800 57,750 ounces Actual direct labor-hours 820 hours Actual direct labor cost $ 16,072 $ 4,592 Actual variable overhead cost The raw materials price variance for the month is closest to: