Windsor Co. incurs $1180875 of overhead costs each year in its three main departments, machining ($670000), inspections (5335000) and packing ($175875). 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 Windsor's two products is as follows: Product X Product Y Machining hours 1000 3000 Inspections 100 50 Orders packed 350 650 Direct labor 1700 1800 hours

Windsor Co. incurs $1180875 of overhead costs each year in its three main departments, machining ($670000), inspections (5335000) and packing ($175875). 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 Windsor's two products is as follows: Product X Product Y Machining hours 1000 3000 Inspections 100 50 Orders packed 350 650 Direct labor 1700 1800 hours

Name: Windsor Co. incurs $1180875 of overhead costs each year in its three
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Windsor Co. incurs $1180875 of overhead costs each year in its three main departments, machining (S670000), inspections(5335000) and packing ($175875). The machining department works 4000 hours per year, there are 600 inspections per year, and thepa

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Cheezy Snack produces rice crackers, wheat crackers, and corn crackers on three different production…

A: A plant wide overhead rate is a single predetermined overhead rate that a company uses to allocate…

Q: Andreasen Corporation manufactures thermostats for office buildings. The following is the cost of…

A: Contribution margin per unit=Selling price-Variable cost per unit Break-even point units=Fixed…

Q: The Engine Division of Murphy Motor Corporation uses 5,000 carburetors per month in its production…

A: Lets understand the basics. Transfer price is a price which comes into picture when there is…

Q: overhead is assigned

A: Total overhead costs = $969375 Total direct labor hours = Direct labor hours of Product X + Direct…

Q: GEM Limited has a single product Flicks. The company normally produces and sells 80,000 units of…

Q: GGT Industries manufactures 23,000 units of a particular component each year. The component's annual…

A: Variable costs are those costs which changes along with change in activity level. Fixed costs do not…

Q: Concord Co. estimates that it will incur $857500 of overhead costs each year in its three main depar…

A: TRADITIONAL COSTING SYSTEMTraditional System cost analysis is done by product. Under Traditional…

Q: (a) GEM has an opportunity to sell 10 000 units to an overseas customer. Import duties and other…

A: Cost: Cost can be defined as the cash and cash equivalent which is incurred against the products…

Q: Sala pipe fittings produce pipe elbows and reducers from stainless steel. The company can process up…

A: BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…

Q: A company incurs $1220000 of overhead each year in three departments, Processing, Packaging, and…

A: Department Cost Divide by: Use of Cost Driver Cost per driver Processing $496000…

Q: GEM Limited has a single product Flicks. The company normally produces and sells 80,000 units of…

A: a) This is a situation of acceptance of an additional offer of 10,000 units. Since even on…

Q: Refer to Murphy Motor Corporation. What is the minimum of the transfer price range for a transfer…

A: Refer to Murphy Motor Corporation. (c)$96 is the minimum of the transfer price range for a transfer…

Q: Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is…

A: The objective of the question is to calculate the overhead cost per unit for Product L given the…

Q: Han Products manufactures 23.000 units of part S-6 each year for use on its production line. At this…

A: The relevant cost is the cost which differs between the two alternatives or is avoidable. If the…

Q: ct one: a. $94,500 increase b. $81,000 decrease c. $237,600 decrease d: $124,000 increase

A: Option (b) $81000 decrease is the correct option. Please see the attached solution for the…

Q: st Pool Estimated Use of Driver 800 200000 2000 Cost $1350000 1350000 600000

A: Activity Based costing is a method that assigns cost of each acitivuty to the products based on the…

Q: Vandalay Industries manufactures two products: toasters and blenders. The annual production and…

A: Overhead cost per blender = Total Overhead Cost of Blenders / Total Number of Blenders Total…

Q: Bing Industries manufactures and sells a single product. The selling price is $800 per unit. In its…

A: In absorption costing all the costs are allocated to the product like direct costs, indirect costs,…

Q: Crane Co. estimates that it will incur $805000 of overhead costs each year in its three main…

A: TRADITIONAL COSTING SYSTEM Traditional System cost analysis is Done by Product. Under Traditional…

Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

Topic Video

Question

Windsor Co. incurs $1180875 of overhead costs each year in its three main departments, machining (S670000), inspections
(5335000) and packing ($175875). 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 Windsor's two products is as follows:
Product X Product Y
Machining hours
1000
3000
Inspections
100
500
Orders packed
350
650
Direct labor
1700
1800
hours
If traditional costing based on direct labor hours is used, how much overhead is assigned to Product X this year?
O $408764
O 5590438
O $284890
O $573568

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

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
Windsor Co. incurs $881,250 of overhead costs each year in its three main departments, machining ($500,000), inspections ($250,000), and packing ($131,250). The machining department works 4,000 hours per year, there are 600 inspections per year, and the packing department packs 1,000 orders per year. Information about Windsor's two products is as follows: Product X Product Y Machining hours 1,000 3,000 Inspections 100 500 Orders packed 350 650 Direct labor hours 1,700 1,800 Using ABC, how much overhead is assigned to Product X this year? a. $305,048 b. $212,604 c. $428,036 d. $440,625
Spring, Incorporated manufactures two products. It currently has 1,000 hours of direct labor and 2,080 hours of machine time available per month. The following table lists the contribution margin, labor and machine time requirements, and demand for each product: Unit contribution margin Demand Labor time Machine time Product A $21 1, 040 units 3/4 hour 1 hour How much of each product should Spring manufacture per month? Product B $18 2,080 units 1 hour 1/2 hour
K Company estimates that overhead costs for the next year will be $5,125,000 for indirect labor and $1,050,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 130,000 direct labor hours are planned for this next year, what is the company's plantwide overhead rate? $0.25 per direct labor hour. O $47.50 per direct labor hour. O $39.42 per direct labor hour. O $8.08 per direct labor hour. O $0.12 per direct labor hour.
Vandalay Industries manufactures two products: toasters and blenders. The annual production and sales of toasters is 2100 units, while 1600 units of blenders are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Toasters require 1.25 direct labor hours per unit, while blenders require 1 direct labor hours per unit. The total estimated overhead for the period is $149,315. 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 Activity cost pool Estimatedoverheadcost Toasters Blenders Total Setup costs $8585 215 batches 450 batches 665 batches Engineering costs $73,980 870 engineering 820 engineering hours 1690 engineering hrs Maintenance costs $66,750 2750 direct labor hours 1195 direct labor hours 3945 direct labor hours Total…
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?
The Engine Division of Murphy Motor Corporation uses 5,000 carburetors per month in its production of automotive engines. It presently buys all of the carburetors it needs from two outside suppliers at an average cost of $100. The Carburetor Division of Murphy Motor Corporation manufactures the exact type of carburetor that the Engine Division requires. The Carburetor Division is presently operating at its capacity of 15,000 units per month and sells all of its output to a foreign car manufacturer at $106 per unit. Its cost structure (on 15,000 units) is: Variable production costs $70 Variable selling costs 10 All fixed costs 10 Assume that the Carburetor Division would not incur any variable selling costs on units that are transferred internally. Refer to Murphy Motor Corporation. What is the minimum of the transfer price range for a transfer between the two divisions?
Longyearbyen Co. incurs $1,050,000 of overhead costs each year in its three main departments, machining ($600,000), inspections ($300,000) and packing ($150,000). The machining department works 4,000 hours per year, there are 600 inspections per year, and the packing department packs 1,000 orders per year. In the past a traditional overhead allocation system was used using direct labor hours. They are considering switching to an activity based costs allocation of overhead. Information about Longyearbyen's two products is as follows: Product Beer 3,000 MHs Machine Hours Inspections Product Coal 1,000 MHs Orders Packed 100 Inspections 350 orders packed 1,700 DLHS 500 Inspections 650 orders packed Direct Labor Hours 1,800 DLHS Under an activity based costing allocation, Beer will be allocated $ more than under the old traditional system?
GEM Limited has a single product Flicks. The company normally produces and sells 80,000units of Flicks each year at a price of $240 per unit. The company’s unit costs at this level ofactivity are as follow:Direct material $57.00Direct labor 60.00Variable manufacturing overhead 16.80Fixed manufacturing overhead 30.00Variable selling and administrative costs 10.20Fixed selling and administrative costs 27.00 Total unit cost $201.00GEM has sufficient capacity to produce 100 000 units of Flicks a year without any increase infixed manufacturing overhead.Required:(a) GEM has an opportunity to sell 10 000 units to an overseas customer. Import duties andother special costs associated with this order would total $42 000. The only selling coststhat would be associated with the order would be a shipping cost of $9.00 per unit.What would be the minimum acceptable unit price for GEM to consider this order?(hint: GEM would not accept the order if it would reduce the…
Royal Company manufactures 10,000 units of Part R-3 each year. At this level of activity, the cost per unit for Part-R-3 follows: Direct materials Direct labour $14.40 21.00 Variable manufacturing overhead Fixed manufacturing overhead 9.60 25.00 $70.00 Total cost per part An outside supplier has offered to sell 10,000 units of Part R-3 each year to Royal Company for $54 per part. If Royal Company accepts this offer, the facilities now being used to manufacture Part R-3 could be rented to another company at an annual rental of $150,000. However, Royal Company has determined that $15 of the fixed manufacturing overhead being applied to Part R-3 would continue even if the part was purchased from the outside supplier. Required: Compute the net dollar advantage or disadvantage of accepting the outside supplier's offer.