x Question 4 Question 5 Question 6 Requirement 1. Compute the total budgeted manufacturing overhead cost for the upcoming year. (Enter the rates to two decimal places.) Zippy Corporation Total Budgeted Indirect Manufacturing Costs Budgeted Quantity of Cost Allocation Base Activity Cost Allocation Rate 4.00 450.00 26.00 50.00 Activity Materials handling Machine setups Insertion of parts Finishing Total budgeted indirect cost 10,000 $ 40 10,000 3,500 Total Budgeted Indirect Cost 40,000 18,000 260,000 175,000 493,000 $ $

x Question 4 Question 5 Question 6 Requirement 1. Compute the total budgeted manufacturing overhead cost for the upcoming year. (Enter the rates to two decimal places.) Zippy Corporation Total Budgeted Indirect Manufacturing Costs Budgeted Quantity of Cost Allocation Base Activity Cost Allocation Rate 4.00 450.00 26.00 50.00 Activity Materials handling Machine setups Insertion of parts Finishing Total budgeted indirect cost 10,000 $ 40 10,000 3,500 Total Budgeted Indirect Cost 40,000 18,000 260,000 175,000 493,000 $ $

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 7EA: A company estimates its manufacturing overhead will be $750,000 for the next year. What is the...

See similar textbooks

Similar questions

Xuereb Manufacturing Company manufactures blue rugs, using wool and dye as direct materials. One rug is budgeted to use 35 skeins of wool at a cost of $6 per skein and 0.8 gallons of dye at a cost of $10 per gallon. All other materials are indirect. At the beginning of the year Xuereb has an inventory of 466,000 skeins of wool at a cost of $1,165,000 and 4,400 gallons of dye at a cost of $27,280. Target ending inventory of wool and dye is zero. Xuereb uses the FIFO inventory cost flow method. A (Click the icon to view the additional information.) There is no direct manufacturing labor cost for dyeing. Xuereb budgets 50 direct manufacturing labor-hours to weave a rug at a budgeted rate of $17 per hour. It budgets 0.2 machine-hours to dye each skein in the dyeing process. E (Click the icon to view the budgeted overhead costs.) Read the requirements. Requirement 1. Prepare a direct material usage budget in both units and dollars. More Info Begin with the physical units portion, then…
Question 7 Howard Bannister Company budgets the following per-unit costs for the upcoming year: Direct Material Direct Labor Variable Selling Expenses Sales commission $32.54 $21.24 $15.70 $20.10 Howard budgets producing 1,017 units and having 27,370 of total variable overhead, 49,540 of total fixed overhead, and 30,387 of total fixed S&A costs for the year. Howard allocates overhead based on units produced. What is the per-unit cost of inventory under variable costing (i.e., assuming budgets are correct, how much will be the total amount debited to WIP if Howard produces one additional unit)? Round your answer to two decimal places (e.g., 192.37).
Question A1 The following budgeted information relates to two departments in AB Ltd for the next financial control period: Machine Department Production Overhead Direct Lab. Cost Direct Lab. Hours Direct Hours Mat. Cost £ 55,000 122,000 131,000 80,000 15,000 150,000 2,000 20,000 50,000 10,000 A Required: Using the most appropriate base in each instance identify the production overhead absorption rate for: (a) (i) (ii) Department A Department B Outline clearly two advantages of using predetermined overhead absorption rates. (b)
Question 1: Asan Ltd manufactures two products. The following budgeted information relates to each product. Product Alpha 70 12 Product Beta Selling Price Per Unit Direct Materials Cost Per Unit Cost per kg of material Direct Labour Hours Per Unit Direct Labour Wage Rate Per Hour Variable Overheads Per Unit Production and sales per month (units) Fixed overheads per month 90 20 4 6. 3 7800 92000 3100 43000 Required Calculate the following for each Product, based on the information given above: a. i. Contribution per unit i. Break even point in terms of Sales Units and Sales Revenue i. Margin of Safety as a % of normal production iv. Budgeted Profit per month The production manager has been warned that there could be a shortfall of material during the next month due to transportation strike. He estimates that there will be 20,000 kilograms available. Calculate the amount of units that should be produced in order to maximise profit/minimise loss and calculate the estimated profit/loss…
Question 1 Shiashi Ltd is preparing its manufacturing overhead budget for 2024. Relevant data consist of the following: - Units to be produced (by quarters): 20,000, 24,000, 34,000 and 36,000. Direct labour: Time is 1.5 hours per unit. Variable overhead costs per direct labour hour: Indirect materials GH¢1.40; indirect labour GH 2.40 and maintenance $1.50. Fixed overhead costs per quarter: Supervisory salaries GH 55,000; depreciation GH 27,000 and maintenance GH¢25,000. a) You are required to prepare the manufacturing overhead budget for the year, showing quarterly data. b) What does an organisation stand to gain by preparing annual budgets for its operations? c) Describe the budgeting process of any business entity that you are familiar with.
QUESTION 5 The following budgeted profit statement has been prepared using absorption costing principles.A company manufactures and sells a single product which has the following cost and sellingprice structure: P/unit P/unit Selling price P120 Direct material 22 Direct labour 36 Variable overhead 14 Fixed overhead 12 P84 Profit per unit P36 The fixed overhead absorption rate is based on the normal capacity of 2,000 units per month.Assume that the same amount is spent each month on fixed overheads.Budgeted sales for next month are 2,200 units.You are required to calculate:a. The breakeven point, in sales units per month. b. The margin of safety for the next month. c. The budgeted profit for the next month. d. The sales required to achieve a profit of P96,000.
Question 1 (Single-rate versus dual-rate methods for allocating support department costs)The Cincinnati power plant that services all manufacturing departments of Eastern MountainEngineering has a budget for the coming year. This budget has been expressed in the following monthlyterms:ManufacturingDepartmentNeeded at Practical CapacityProduction Level (KilowattHoursAverage Expected MonthlyUsage (Kilowatt-Hours)Loretta 13,000 10,000Bently 21,000 9,000Melboum 14,000 10,000Eastmoreland 32,000 11,000Total 80,000 40,000The expected monthly costs for operating the power plant during the budget year are $20,000: $8,000variable and $12,000 fixed.Required:1. Assume that a single cost pool is used for the power plant costs. What budgeted amounts will beallocated to each manufacturing department if:(a) the rate is calculated based on practical capacity and costs are allocated based on practicalcapacity and(b) the rate is calculated based on expected monthly usage and costs are allocated based…
Question Two Apex Ltd manufactures three products X, Y and Z in two product ion departments; P1 and Pz. The company also has two service departments: Sı and Sz. The company's budgeted product ion data and manufacturing costs for the year 2021 were as f ollows: Product Product ion (units) Direct materials (Shs. per unit) Direct labour: P: (Shs. per unit) 4,200 6,900 1,700 11 14 17 6 4 2 P2 (shs. Per unit) 12 3 21 Machine hours per unit 6 3 4 Additional information 1. Absorpt ion rates in depart ments Pı and Pz are based on machine hours and labour wages respectively. 2. Budgeted overheads for rent, heating and lighting amounted to shs.17,000 while depreciation and ins urance amount ed to shs.25,000, 3. The costs of service department Szare apportioned to production departments Pi and P2 at the ratio of 7:3 while the costs of Si are apportioned to depart ments Pi Pz and Sz based on the number of employees. 4. Other information includes: P1 Pz S. Sz 27,660 19,47o 16,600 26,650 Budgeted…
4. Use the following terms in preparing the budget: Insurance Maintenance Utilities Depreciation Expense Sales Commissions Depreciation Indirect Material Maintenance Salaries Indirect Labor Supervisory Salaries Sales Salaries Insurance Expense Spree Party Lights overhead expenses are: Indirect material, pounds per unit 0.25 Indirect material, cost per pound $ 2 Indirect labor hours 1 Indirect labor rate per hour $16.50 Variable maintenance per unit $0.75 Variable utilities per unit $0.20 Supervisor salaries $10,000 Maintenance salaries $9,000 Insurance $3,000 Depreciation $1,500 PLEASE NOTE: All dollar amounts are rounded to whole dollars and shown…
Howard Cooper, the president of Campbell Computer Services, needs your help. He wonders about the potential effects on the firm's net income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal Year 3. Standard rate and variable costs Service rate per hour $ 85.00 Labor cost 37.00 Overhead cost 7.10 Selling, general, and administrative cost Expected fixed costs Facility maintenance Selling, general, and administrative 3.80 $522,000 142,000 Required: a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 45,000 hours of services in Year 3. b. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can achieve. According to the consultant's analysis, if Campbell charges customers $80 per hour, the firm can achieve 50,000 hours of services. Prepare a flexible budget using the consultant's assumption. c. The same…
QUESTION 2 The following data have been provided by Mathews Corporation: Budgeted production 6.900 units Standard machine-hours per unit 9.4 machine-hours Standard lubricants rate $1.20 per machine-hour Standard supplies rate $1.00 per machine-hour Actual production 7,000 units Actual machine-hours (total) 66.230 machine-hours Actual lubricants cost (total) $78.100 Actual supplies cost (total) $66.536 Lubricants and supplies are both elements of variable manufacturing overhead. The variable overhead rate variance for supplies is closest to: $306 U $736 U $430 U $736 F
Operating Budget, Comprehensive Analysis Ponderosa, Inc., produces wiring harness assemblies used in the production of semi-trailer trucks. The wiring harness assemblies are sold to various truck manufacturers around the world. Projected sales in units for the coming five months are given below. January 10,000 February 10,500 March 13,700 April 16,000 May 18,500 The following data pertain to production policies and manufacturing specifications followed by Ponderosa: a. Finished goods inventory on January 1 is 900 units. The desired ending inventory for each month is 20 percent of the next month's sales. b. The data on materials used are as follows: Direct Material Per-Unit Usage Unit Cost Part #1298 2 $4 4 Part #C30 3 7 Inventory policy dictates that sufficient materials be on hand at the beginning of the month to satisfy 30 percent of the next month's production needs. This is exactly the amount of material on hand on January 1. c. The direct labor used per unit of output is one and…