View Policies Current Attempt in Progress Foxx Company incurs $440000 overhead costs each year in its three main departments, setup ($20000), machining ($295000), and packing ($125000). The setup department performs 40 setups per year, the machining department works 5000 hours per year, and the packing department packs 500 orders per year. Information about Foxx's two products is as follows: Product A1 Product B1 Number of setups 20 20 Machining hours Orders packed 1000 4000 350 150 Number of products manufactured 600 400 If machining hours are used as a base under traditional casting, how much overhead is assigned to Product A1 each year? O $88000 o $220000 e $132000 $147500

View Policies Current Attempt in Progress Foxx Company incurs $440000 overhead costs each year in its three main departments, setup ($20000), machining ($295000), and packing ($125000). The setup department performs 40 setups per year, the machining department works 5000 hours per year, and the packing department packs 500 orders per year. Information about Foxx's two products is as follows: Product A1 Product B1 Number of setups 20 20 Machining hours Orders packed 1000 4000 350 150 Number of products manufactured 600 400 If machining hours are used as a base under traditional casting, how much overhead is assigned to Product A1 each year? O $88000 o $220000 e $132000 $147500

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 11E: Cashion Company produces chemical mixtures for veterinary pharmaceutical companies. Its factory has...

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Cashion Company produces chemical mixtures for veterinary pharmaceutical companies. Its factory has four mixing lines that mix various powdered chemicals together according to specified formulas. Each line can produce up to 5,000 barrels per year. Each line has one supervisor who is paid 34,000 per year. Depreciation on equipment averages 16,000 per year. Direct materials and power cost about 4.50 per unit. Required: 1. Prepare a graph for each of these three costs: equipment depreciation, supervisors wages, and direct materials and power. Use the vertical axis for cost and the horizontal axis for units (barrels). Assume that sales range from 0 to 20,000 units. 2. Assume that the normal operating range for the company is 16,000 to 19,000 units per year. How would you classify each of the three types of cost?
The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
Concord Co. estimates that it will incur $857500 of overhead costs each year in its three main departments, machining ($490000). inspections ($245000) and packing ($122500). The machining department works 4000 hours per year, there are 600 inspections per year, and the packing department packs 1000 orders per year. Information about Concord's two products and their estimated use of cost drivers is as follows: Machining hours Inspections Orders packed Direct labor hours Product X 1000 $296827 O $416500 100 350 1700 Product Y 3000 500 650 1800 If traditional costing based on direct labor hours is used, how much overhead will be assigned to Product X?
Sheffield Co. estimates that it will incur $1290000 of overhead costs each year in its three main departments, machining ($750000), inspections ($360000) and packing ($180000). The machining department works 4000 hours per year, there are 600 inspections per year, and the packing department packs 1000 orders per year. Information about Sheffield's two products and their estimated use of cost drivers is as follows: Machining hours Inspections Orders packed Direct labor hours Product X $645000 O $446538 $642000 O $310500 1000 100 350 1700 Product Y 3000 500 650 1800 If ABC is used, how much overhead will be assigned to Product X?
Foxx Company incurs $565000 overhead costs each year in its three main departments, setup ($30000), machining ($375000), and packing ($160000). The setup department performs 40 setups per year, the machining department works 5000 hours per year, and the packing department packs 500 orders per year. Information about Foxx’s two products is as follows: Product A1 Product B1 Number of setups 20 20 Machining hours 1000 4000 Orders packed 150 350 Number of products manufactured 600 400 Using ABC, how much overhead is assigned to Product A1 each year? $113000 $282500 $138000 $427000
Crane Co. estimates that it will incur $805000 of overhead costs each year in its three main departments, machining ($460000), inspections ($230000) and packing ($115000). The machining department works 4000 hours per year, there are 600 inspections per year, and the packing department packs 1000 orders per year. Information about Crane's two products and their estimated use of cost drivers is as follows: Machining hours Inspections Orders packed Direct labor hours Product X 1000 100 350 1700 Product Y 3000 500 650 1800 If traditional costing based on direct labor hours is used, how much overhead will be assigned to Product X?
Corazon Manufacturing Company has a purchasing department staffed by five purchasingagents. Each agent is paid $28,000 per year and is able to process 4,000 purchase orders. Lastyear, 17,800 purchase orders were processed by the five agents.Required:1. Calculate the activity rate per purchase order.2. Calculate, in terms of purchase orders, the:a. total activity availabilityb. unused capacity3. Calculate the dollar cost of:a. total activity availabilityb. unused capacity4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for $14,000? How many pur-chase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?
GGT Industries manufactures 23,000 units of a particular component each year. The component's annual manufacturing costs for this level of production are: Direct Materials $147,000 Direct Labor $179,000 Variable manufacturing $26,000 overhead Fixed manufacturing $72,000 overhead An outside supplier has offered to produce all 23,000 units of the component for $13 per unit. Additional information: 。 GGT could earn $42,000 per year by renting out its current manufacturing facilities if it purchases the component from the outside supplier. 。 GGT has determined that the fixed manufacturing overhead would be reduced by 70% if they purchase the component from the supplier. Calculate GGT's anticipated total annual financial impact from purchasing the component from the supplier instead of manufacturing it themselves.
Windsor Co. incur $1067500 of overhead costs each year in its three main departments, machining ($610000), inspections ($305000) and packing ($152500). The machining department works 4000 hours per year, there are 500 inspections per year, and the packing department packs 1000 orders per year. Information about Windsor’s two products is as follows: Product X Product Y Machining hours 1000 3000 Inspections 100 400 Orders packed 350 650 Direct labor hours 1700 1800 Using ABC, how much overhead is assigned to Product X this year?
A company estimates that it will incur $3300000 of overhead each year in three departments: Processing, Packaging, and Testing. The company performs 800 processing transactions, 200000 packaging transactions, and 2000 tests per year in producing 400000 drums of product Oil and 600000 drums of product Sludge. The following data are available: Activity Cost Pool Estimated Use of Driver Processing 800 Packaging Testing 200000 2000 $1796250. $1503750. $1230000. $1650000. Cost 300 $1350000 Production information for the two products is as follows: 120000 1600 1350000 Oil Sludge Activity Cost Pool Estimated Use of Driver Estimated Use of Driver Processing 500 Packaging Testing 600000 The amount of overhead assigned to Sludge using ABC is 80000 400
Windsor Co. incurs $ 980000 of overhead costs each year in its three main departments, machining ($ 560000), inspections ($ 280000) and packing ($ 140000). The machining department works 4000 hours per year, there are 500 inspections per year, and the packing department packs 1000 orders per year. Information about Windsor’s two products is as follows: Product X Product Y Machining hours 1000 3000 Inspections 100 400 Orders packed 350 650 Direct labor hours 1700 1800 Using ABC, how much overhead is assigned to Product X this year? $ 245000 $ 490000 $ 343000 $ 476000
The Rodgers Company makes 27,000 units of a certain component each year for use in one of its products. The cost per unit for the component at this level of activity is as follows: Direct materials. $4.20 Direct labor. $12.00 $5.80 Variable manufacturing overhead. Fixed manufacturing overhead $6.50 ****** Rodgers has received an offer from an outside supplier who is willing to provide 27,000 units of this component each year at a price of $25 per component. Assume that direct labor is a variable cost. None of the fixed manufacturing overhead would be avoidable if this component were purchased from the outside supplier. Assume that there is no other use for the capacity now being used to produce the component and the total fixed manufacturing overhead of the company would be unaffected by this decision. If Rodgers Company purchases the components rather than making them internally, what would be the impact on the company's annual net operating income? Select one: a. $94,500 increase b.…