The total factory
a. Determine the total number of budgeted direct labor hours for the year.
fill in the blank 1 of 1 direct labor hours
b. Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places.
fill in the blank 1 of 1$ per direct labor hour
c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b). Round your answers to two decimal places.
Night lights fill in the blank 1 of 1$ per unit
Desk lamps fill in the blank 1 of 1$ per unit
to generate a solution
a solution
- Addison Company budgets production of 2,800 units during the second quarter. Information on its direct labor and its variable and fixed overhead is as follows: Direct labor Each finished unit requires 4 direct labor hours, at a cost of $8 per hour. Variable overhead Budgeted at the rate of $10 per direct labor hour. Fixed overhead Budgeted at $590,000 per quarter. 1. Prepare a direct labor budget.2. Prepare a factory overhead budget.arrow_forwardMary Williams, owner of Williams Products, is evaluating whether to introduce a new product line. After thinking through the production process and the costs of raw materials and new equipment, Williams estimates the variable costs of each unit produced and sold at $6 and the fixed costs per year at $60,000.a. If the selling price is set at $18 each, how many units must be produced and sold for Williams to break even? Use both graphic and algebraic approaches to get your answer.b. Williams forecasts sales of 10,000 units for the first year if the selling price is set at $14 each. What would be the total contribution to profits from this new product during the first year?c. If the selling price is set at $12.50, Williams forecasts that first-year sales would increase to 15,000 units. Which pricing strategy ($14.00 or $12.50) would result in the greater total contribution to profits?d. What other considerations would be crucial to the final decision about making and marketing the new…arrow_forwardThe total factory overhead for Big Light Company is budgeted for the year at $1,127,280. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 14,200 units. Each night light requires 3 hours of direct labor. Desk lamps are budgeted for 9,500 units. Each desk lamp requires 2 hours of direct labor. a Determine the total number of budgeted direct labor hours for the year.fill in the blank 1 direct labor hours b Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places.$fill in the blank 2 per direct labor hour c Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b). Round your answers to two decimal places. Night Lights $fill in the blank 3 per unit Desk Lamps $fill in the blank 4 per unitarrow_forward
- The total factory overhead for Big Light Company is budgeted for the year at $1,022,250. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 12,300 units. Each night light requires 3 hours of direct labor. Desk lamps are budgeted for 16,800 units. Each desk lamp requires 2 hours of direct labor.arrow_forwardThe total factory overhead for Diva-nation is budgeted for the year at $180,000, divided intofour activities: cutting, $18,000; sewing, $36,000; setup, $96,000; and inspection, $30,000.Diva-nation manufactures two types of men's pants: jeans and khakis. The activity-base usagequantities for each product by each activity are as follows. Determine the a) activity rates foreach activity and b) activity based factory overhead per unit for each product.: Each product is budgeted for 20,000 units of production for the year. Determine (a) theactivity rates for each activity and (b) the activity based factory overhead per unit for eachproduct.arrow_forwardMCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $4 per pound and 0.7 direct labor hour at a rate of $18 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is $18,000 per month. The company's policy is to end each month with direct materials inventory equal to 20% of the next month's direct materials requirement. At the end of August the company had 1,880 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget September October November Units to produce 4,700 7,100 6,200 (1) Prepare direct materials budgets for September and October. (2) Prepare direct labor budgets for September and October. (3) Prepare factory overhead budgets for September and October. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare direct labor budgets for September and October. (Round "DL hours…arrow_forward
- The total factory overhead for Bardot Marine Company is budgeted for the year at $600,000 divided into two departments: Fabrication, $420,000, and Assembly, $180,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require 8 direct labor hours in Fabrication and 4 direct labor hours in Assembly. The bass boats require 4 direct labor hours in Fabrication and 8 direct labor hours in Assembly. Each product is budgeted for 250 units of production for the year. If required, round all per unit answers to the nearest cent. a. Determine the total number of budgeted direct labor hours for the year in each department. Fabrication _______direct labor hours Assembly _______direct labor hours b. Determine the departmental factory overhead rates for both departments. Fabrication Department rate $______per dlh Assembly Department rate $______per dlh c. Determine the factory overhead allocated per unit for each product using the department…arrow_forwardGarden Yeti manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $2 per pound and 0.4 direct labor hour at a rate of $18 per hour. Varlable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted fixed overhead is $4,500 per month. The company's policy is to maintain direct materials Inventory equal to 30% of the next month's direct materials requirement. At the end of February the company had 7,440 pounds of direct materials in Inventory. The company's production budget reports the following. Production Budget Units to produce March April 3,100 4,400 (1) Prepare direct materials budgets for March and April. (2) Prepare direct labor budgets for March and April. (3) Prepare factory overhead budgets for March and April. Complete this question by entering your answers in the tabs below. Units to produce Required 1 Required 2 Required 3 Prepare direct materials budgets for March and April. GARDEN YETI Direct Materials Budget…arrow_forwardThe Gidget Company produces a variety of styles of gidgets, and measures total output as the standard hours allowed for actual output. Gidget Company's manufacturing overhead budget calls for $50,000 of fixed overhead for the year plus $10 per direct labor hour. Last year the Gidget Company produced 11,000 standard hours of output. Actual manufacturing overhead for the year amounted to $53,000 of fixed overhead and the Gidget Company used 8,000 direct labor hours. The Gidget Company uses standard direct labor hours allowed as a basis for allocating overhead and uses 10,000 direct labor hours as its denominator volume. Calculate the production volume variance:arrow_forward
- sanjayarrow_forwardThe total factory overhead for Bardot Marine Company is budgeted for the year at $2,932,500. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboat and bass boat each require six direct labor hours for manufacture. Each product is budgeted for 11,500 units of production for the year. When required, round all per unit answers to the nearest cent. a. Determine the total number of budgeted direct labor hours for the year.______ direct labor hours b. Determine the single plantwide factory overhead rate.$_____ per dlh c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate. Speedboat $____per unit Bass boat $____per unitarrow_forwardMCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $3 per pound and 0.7 direct labor hour at a rate of $12 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is $11,000 per month. The company's policy is to end each month with direct materials Inventory equal to 30% of the next month's direct materials requirement. At the end of August the company had 2,580 pounds of direct materials in Inventory. The company's production budget reports the following. Production Budget Units to produce Required 1 (1) Prepare direct materials budgets for September and October. (2) Prepare direct labor budgets for September and October. (3) Prepare factory overhead budgets for September and October. September 4,300 Complete this question by entering your answers in the tabs below. Units to produce October 6,800 Required 2 Required 3 Prepare direct labor budgets for September and October. (Round "DL…arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education