Seven Walls Ltd manufactures two products, Stone and Glass. Budgeted overhead and direct labour hours for the upcoming period are $884,500 and 29,000, respectively. The overhead costs are identified with three major activities: order processing $160,000; machine processing $614,500 and product inspection $110,000. Seven Walls pays its labourer on average $20 per hour. Information about the company’s products are as follows:   Stone    Estimated production volume: 5,200    Direct material cost per unit: 25    Direct labour hours per unit: 2 Glass    Estimated production volume: 6,500    Direct material cost per unit: 40    Direct labour hours per unit: 3   Information about the number of inspections, machine hours and order processed are as follows:    Product line Inspection hours Machine hours worked Order processed Stone 1,800 16,100 322 Glass 5,200 19,000 240 Total 7,000 35,100 562   Required: Calculate the unit product costs for Stone and Glass using: Traditional costing, assuming direct labour hours is the allocation base. Activity-based costing.

Julia Company produces a single product. The company has set the following standards for materials and labor:     Standard quantity or hours per unit   Standard price or rate Direct materials   ? pounds per unit     $ ? per pound Direct labor   3.0 hours per unit     $ 10 per hour     During the past month, the company purchased 7,000 pounds of direct materials at a cost of $17,500. All of this material was used in the production of 1,300 units of product. Direct labor cost totaled $36,750 for the month. The following variances have been computed:           Materials quantity variance $ 1,375 U Total materials variance $ 375 F Labor efficiency variance $ 4,000 F     Required:1. For direct materials:a. Compute the standard price per pound of materials.b. Compute the standard quantity allowed for materials for the month's production.c. Compute the standard quantity of materials…

Garfield Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows:   Budgeted   Activity Activity Cost Activity Base Casting $99,820 Machine hours Assembly 58,900 Direct labor hours Inspecting 21,252 Number of inspections Setup 33,221 Number of setups Materials handling 34,830 Number of loads   Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 2,101 1,119 3,220 Direct labor hours 791 2,309 3,100 Number of inspections 724 288 1,012 Number of setups 175 64 239 Number of loads 544 230 774 Units produced 6,569 1,747 8,316

Eclipse Motor Company manufactures two types of specialty electric motors, a commercial motor and a residential motor, through two production departments, Assembly and Testing. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering using the multiple production department factory overhead rate method. The following factory overhead was budgeted for Eclipse: Assembly Department $280,000   Testing Department 800,000     Total $1,080,000     Direct machine hours were estimated as follows: Assembly Department 4,000 hours Testing Department 5,000     Total 9,000 hours   In addition, the direct machine hours (dmh) used to produce a unit of each product in each department were determined from engineering records, as follows:   Commercial Residential Assembly Department 2.0 dmh 3.0 dmh Testing Department 6.0   1.5   Total machine hours per unit 8.0 dmh 4.5 dmh…

Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,347,400, divided into four activities: fabrication, $660,000; assembly, $276,000; setup, $224,400; and inspection, $187,000. Bardot Marine manufactures two types of boats: speedboats am bass boats. The activity-base usage quantities for each product by each activity are as follows: Fabrication Assembly Setup Inspection Speedboat 11,000 dlh 34,500 dlh 79 setups 138 inspections Bass boat 33,000 11,500 581 962 44,000 dlh 46,000 dlh 660 setups 1,100 inspections Each product is budgeted for 6,500 units of production for the year. a. Determine the activity rates for each activity. Fabrication per direct labor hour Assembly %$4 per direct labor hour Setup %$4 per setup Inspection per inspection b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar. Speedboat per unit Bass boat %$4 per unit

Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor. Machine processing Machine setups Production orders $ 160 per order Shipments $125 per shipment Product sustaining $850 per product Activity data have been supplied for the following two products: Number of units produced per year. Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Activity Rates $ 11 per direct labor-hour $2 per machine-hour $50 per setup Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost K425 Total Expected Activity K425 M67 2,000 M67 200 1,150 3,200 15 15 30 3 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 40 30 3 3 3 3

Fresh-Cut processes bags of frozen organic vegetables sold at specialty grocery stores. Fresh-Cut allocates manufacturing overhead based on direct labour hours. The company's projected manufacturing overhead was $800,000, of which $600,000 is fixed. They expected to process 160,000 cases. The direct labour standard for each case is 15 minutes. The company's actual processing was 180,000 cases of frozen organic vegetables during the year, incurring at total of $840,000 of manufacturing overhead, where $610,000 of it was fixed. Based on this information, calculate the company's overhead flexible budget variance. OA. The company's overhead flexible budget variance $15,000 F. OB. The company's overhead flexible budget variance $60,000 U. OC. The company's overhead flexible budget variance $60,000 F. OD. The company's overhead flexible budget variance is $ 5,000 U. E. The company's overhead flexible budget variance $15,000 U.

Sharp Company manufactures a product for which the following standards have been set:     Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 3 feet $ 5 per foot $ 15 Direct labor ? hours ? per hour ?   During March, the company purchased direct materials at a cost of $56,610, all of which were used in the production of 2,875 units of product. In addition, 4,700 direct labor-hours were worked on the product during the month. The cost of this labor time was $37,600. The following variances have been computed for the month:   Materials quantity variance $ 4,050 U Labor spending variance $ 2,180 U Labor efficiency variance $ 770 U   Required: 1. For direct materials: a. Compute the actual cost per foot of materials for March. b. Compute the price variance and the spending variance.   2. For direct labor: a. Compute the standard direct labor rate per hour. b. Compute the standard hours allowed for the month’s production. c. Compute the…

Vandalay Industries manufactures two products: toasters and blenders. The annual production and sales of toasters is 2,100 units, while 1,700 units of blenders are produced and sold. The company Khas traditionally used direct labor hours to allocate its overhead to products. Toasters require 1.25 direct labor hours per unit, while blenders require 0.75 direct labor hours per unit. The total estimated overhead for the period is $148,315. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it would have the following three activity cost pools Expected activity Estimated overhead cost $8.585 $71,980 880 engineering hours $67,750 2,625 direct labor hours $148.315 The cost pool activity rate for Engineering Costs would be closest to (Round all answers to two decimal places.) Activity cost pool Setup costs Engineering costs Maintenance costs Total Toasters 205 batches OA $56 45 per…

Evergreen Inc. expects to manufacture 4,000 refrigerators during the last quarter of the current year. The company uses activity-based costing to determine the product costs. The manufacturing activities and associated information is provided in the table below.  Manufacturing Activities and Associated Information  Overhead activities  Overhead costs assigned ($)  Number of cost driver Material handling 120,000 240,000 Parts Devising 400,000 50,000 Machine hours (MH) Assembling 168,000 240,000 Parts Finishing  240,000 4,000 Finishing hours (FH) Each refrigerator uses 30 parts and requires 5 machine hours and 1 finishing hour during the production process. The direct material costs and direct labor costs required for each refrigerator is $500 and $90, respectively. What would be the overhead rate per finishing hour (FH)? (Round your answer to two decimal points) Group of answer choices $8.00 per FH $0.70 per FH $60.00 per FH $0.50 per FH