Tarnish Industries produces miniature models of farm equipment. These collectibles are in great demand. It takes two operations, molding and finishing, to complete the miniatures. Next year's expected activities are shown in the following table: Direct labor hours Machine hours Multiple Choice Tarnish Industries uses departmental overhead rates and is planning on a $4.10 per machine hour overhead rate for the Finishing department. Compute the budgeted manufacturing overhead cost for the Finishing department given the information shown in the table. $307,500 $658,050 Molding 75,000 DLH 98,000 MH $401,800 Finishing 160,500 DLH 81,500 MH

Tarnish Industries produces miniature models of farm equipment. These collectibles are in great demand. It takes two operations, molding and finishing, to complete the miniatures. Next year's expected activities are shown in the following table: Direct labor hours Machine hours Multiple Choice Tarnish Industries uses departmental overhead rates and is planning on a $4.10 per machine hour overhead rate for the Finishing department. Compute the budgeted manufacturing overhead cost for the Finishing department given the information shown in the table. $307,500 $658,050 Molding 75,000 DLH 98,000 MH $401,800 Finishing 160,500 DLH 81,500 MH

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 8CE: Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each...

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Approximately Relevant ABC Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost           Activity Driver Activity Capacity Setting up equipment $147,000           Number of setups 120 Ordering materials 12,000           Number of orders 600 Machining 109,200           Machine hours 9,100 Receiving 31,680           Receiving hours 1,320 Silven produces two models of cell phones with the following expected activity demands:       Model X       Model Y Units completed 4,200   8,400 Number of setups 80   40 Number of orders 200   400 Machine hours 5,200   3,900 Receiving hours 440   880 REQUIRED:- 2. Determine the total overhead assigned to each model using the two most expensive activities. The costs of the two relatively inexpensive activities are allocated to the two expensive activities in proportion to their costs. Round interim…
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Approximately Relevant ABC Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost           Activity Driver Activity Capacity Setting up equipment $132,000           Number of setups 120 Ordering materials 19,800           Number of orders 900 Machining 115,500           Machine hours 10,500 Receiving 26,400           Receiving hours 1,200 Silven produces two models of cell phones with the following expected activity demands:       Model X       Model Y Units completed 4,000   8,000 Number of setups 80   40 Number of orders 300   600 Machine hours 6,000   4,500 Receiving hours 400   800 Required: 1. Determine the total overhead assigned to each product using the four activity drivers. Total Overhead Assigned Model X Model Y 2. Determine the total overhead assigned to each model using the two most expensive activities. The…
Jean and Tom Perritz own and manage Happy Home Helpers. Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Next year, HHH expects to purchase 25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: There is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day. Required: 1. Prepare a statement of cost of services sold in good form. 2. How does this cost of services sold statement differ from the cost of goods sold statement for a manufacturing firm?
Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Next year, HHH expects to purchase 25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: There is no work-in-process inventory; in other words, a cleaning is started and completed on the same day. Required: 1. Prepare a statement of services produced in good form. 2. What if HHH planned to purchase 30,000 of direct materials? Assume there would be no change in beginning and ending inventories of materials. Explain which line items on the statement of services produced would be affected and how (increase or decrease).
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