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Splunge Manufacturing produces surfboards. The company uses a normal-costing system and allocates manufacturing overhead on the basis of direct manufacturing labor-hours. Most of the company's production and sales occur in the first and second quarters of the year. The company is in danger of losing one of its larger customers, Soho Wholesale, due to large fluctuations in price. The owner of Splunge has requested an analysis of the manufacturing cost per unit in the second and third quarters. You have been provided the following budgeted information for the coming year. E (Click the icon to view the budgeted information.) (Click the icon to view additional information.) Read the requirements Requirement 1 and 2. Calculate the total manufacturing cost per unit for the second and third quarter assuming the company allocates manufacturing overhead costs based on the budgeted manufacturing overhead rate determined for each quarter and an annual budgeted manufacturing overhead rate. First identify the formula to calculate the total manufacturing cost per unit, then enter the appropriate amounts to calculate the total cost per unit for second and third quarter based on the budgeted manufacturing overhead rate determined for each quarter and an annual budgeted manufacturing overhead rate for the year. (Abbreviation used: OH = overhead, mat. = materials, and Var. = variable.) Total cost Direct labor per unit Direct mat. per unit Fixed OH per unit Var. OH per unit per unit Qtr 2 Qtr 3 - X - X More Info Data Table Annual It takes 1 direct manufacturing labor-hour to make each board. The actual direct material cost is S$15.00 per board. The actual direct manufacturing labor rate is $29 per hour. The budgeted variable manufacturing overhead rate is $22 per direct manufacturing labor-hour. Budgeted fixed manufacturing overhead costs are $15,000 each quarter. Quarter 2 3 4 Surfboards manufactured and sold 965 750 375 310

Splunge Manufacturing produces surfboards. The company uses a normal-costing system and allocates manufacturing overhead on the basis of direct manufacturing labor-hours. Most of the company's production and sales occur in the first and second quarters of the year. The company is in danger of losing one of its larger customers, Soho Wholesale, due to large fluctuations in price. The owner of Splunge has requested an analysis of the manufacturing cost per unit in the second and third quarters. You have been provided the following budgeted information for the coming year. E (Click the icon to view the budgeted information.) (Click the icon to view additional information.) Read the requirements Requirement 1 and 2. Calculate the total manufacturing cost per unit for the second and third quarter assuming the company allocates manufacturing overhead costs based on the budgeted manufacturing overhead rate determined for each quarter and an annual budgeted manufacturing overhead rate. First identify the formula to calculate the total manufacturing cost per unit, then enter the appropriate amounts to calculate the total cost per unit for second and third quarter based on the budgeted manufacturing overhead rate determined for each quarter and an annual budgeted manufacturing overhead rate for the year. (Abbreviation used: OH = overhead, mat. = materials, and Var. = variable.) Total cost Direct labor per unit Direct mat. per unit Fixed OH per unit Var. OH per unit per unit Qtr 2 Qtr 3 - X - X More Info Data Table Annual It takes 1 direct manufacturing labor-hour to make each board. The actual direct material cost is S$15.00 per board. The actual direct manufacturing labor rate is $29 per hour. The budgeted variable manufacturing overhead rate is $22 per direct manufacturing labor-hour. Budgeted fixed manufacturing overhead costs are $15,000 each quarter. Quarter 2 3 4 Surfboards manufactured and sold 965 750 375 310

Cornerstones of Cost Management (Cornerstones Series)
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 34P: Kimball Company has developed the following cost formulas:...
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Splunge Manufacturing produces surfboards. The company uses a normal-costing system and allocates manufacturing overhead on the basis of direct manufacturing labor-hours. Most of the company's production and sales occur in the first and second quarters of the year. The company is in danger of losing one of its larger customers, Soho Wholesale, due to large fluctuations in price. The owner of Splunge has requested an analysis of the manufacturing cost per unit in the second and third quarters. You have been provided the following budgeted information for the coming year: E (Click the icon to view the budgeted information.) A (Click the icon to view additional information.) Read the requirements Requirement 1 and 2. Calculate the total manufacturing cost per unit for the second and third quarter assuming the company allocates manufacturing overhead costs based on the budgeted manufacturing overhead rate determined for each quarter and an annual budgeted manufacturing overhead rate. First identify the formula an annual budgeted manufacturing overhead rate for the year. (Abbreviation used: OH = overhead, mat. = materials, and Var. = variable.) calculate the total manufacturing cost per unit, then enter the appropriate amounts to calculate the total cost per unit for second and third quarter based on the budgeted manufacturing overhead rate determined for each quarter and Total cost Direct labor per unit Direct mat. per unit Fixed OH per unit Var. OH per unit per unit Qtr 2 Qtr 3 More Info Data Table Annual It takes 1 direct manufacturing labor-hour to make each board. The actual direct material cost is $15.00 per board. The actual direct manufacturing labor rate is $29 per hour. The budgeted variable manufacturing overhead rate is $22 per direct manufacturing labor-hour. Budgeted fixed manufacturing overhead costs are $15,000 each quarter. Quarter 1 2 3 4 Surfboards manufactured and sold 965 750 375 310
Transcribed Image Text:Splunge Manufacturing produces surfboards. The company uses a normal-costing system and allocates manufacturing overhead on the basis of direct manufacturing labor-hours. Most of the company's production and sales occur in the first and second quarters of the year. The company is in danger of losing one of its larger customers, Soho Wholesale, due to large fluctuations in price. The owner of Splunge has requested an analysis of the manufacturing cost per unit in the second and third quarters. You have been provided the following budgeted information for the coming year: E (Click the icon to view the budgeted information.) A (Click the icon to view additional information.) Read the requirements Requirement 1 and 2. Calculate the total manufacturing cost per unit for the second and third quarter assuming the company allocates manufacturing overhead costs based on the budgeted manufacturing overhead rate determined for each quarter and an annual budgeted manufacturing overhead rate. First identify the formula an annual budgeted manufacturing overhead rate for the year. (Abbreviation used: OH = overhead, mat. = materials, and Var. = variable.) calculate the total manufacturing cost per unit, then enter the appropriate amounts to calculate the total cost per unit for second and third quarter based on the budgeted manufacturing overhead rate determined for each quarter and Total cost Direct labor per unit Direct mat. per unit Fixed OH per unit Var. OH per unit per unit Qtr 2 Qtr 3 More Info Data Table Annual It takes 1 direct manufacturing labor-hour to make each board. The actual direct material cost is $15.00 per board. The actual direct manufacturing labor rate is $29 per hour. The budgeted variable manufacturing overhead rate is $22 per direct manufacturing labor-hour. Budgeted fixed manufacturing overhead costs are $15,000 each quarter. Quarter 1 2 3 4 Surfboards manufactured and sold 965 750 375 310
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