Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant for the third quarter follow. Units produced Machine-hours Direct labor-hours Standard 29,100 17,460 21,825 Enhanced 9,700 Total 38,800 11,640 29,100 Direct materials costs Direct labor costs $ 582,000 349,200 21,825 $ 873,000 742,050 43,650 $ 1,455,000 1,091,250 Manufacturing overhead 750,780 $ 3,297,030 Total costs Required: Compute the predetermined overhead rate assuming that Redfern Audio uses direct labor costs to allocate overhead costs. Note: Round your answer to 2 decimal places. Predetermined overhead rate % of direct labor cost
Q: Assuming Cullumber is using the equity method under ASPE, did the initial investment include a…
A: Investments:The investment refers to the current assets which is money invested by the individual in…
Q: Required Information On January 1, 2024, the general ledger of TNT Fireworks includes the following…
A: 1. Multi-Step Income Statement -Multi multi-step income statement is the summary of revenue earned…
Q: Complete the materia
A: FIFO is an inventory valuation method that assumes the first items purchased or added to inventory…
Q: Show Attempt History Current Attempt in Progress Sheffield Company sells one product. Presented…
A: Under the perpetual inventory system cost of goods sold is recorded for each sales transaction on…
Q: Executive officers of Baird Company are wrestling with their budget for the next year. The following…
A: Budgeting is a process of estimation of future income and expenditure for a particular period of…
Q: Short term and leng-term disability ine,rance were purchased for Wallam and monthly premiums of $176…
A: The objective of the question is to determine the amount of short-term disability payments that…
Q: i need the answer quickly
A: Cost of Goods Sold( COGS) refers to the direct costs incurred in producing goods or acquiring…
Q: During the month of June, Concord Boutique recorded cash sales of $334,910 and credit sales of…
A: Credit sales are deals in which products or services are vended to guests on credit, with the…
Q: Pronghorn Company began operations on January 2, 2025. It employs 12 individuals who work 8-hour…
A: Unused sick leaves accumulate and carryforward to next yearEmployee sick leave earned= 6Sick leave…
Q: Required information Use the following information for the Exercises 13-14 below. (Algo) [The…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: Required Information On January 1, 2024, the general ledger of TNT Fireworks includes the following…
A: Balance sheet is one of the financial statements that records details of what the company owns and…
Q: Oriole Company Inc. had a beginning inventory of 105 units of Product RST at a cost of $7 per unit.…
A: The average cost per unit is approximately $8.894.Explanation:To calculate the average cost per…
Q: i need the answer quickly
A: · FICA – This is a US federal tax. It means Federal Insurance Contributions Act. This is…
Q: On 31 December 20X0, Columbia Inc. entered into an agreement with Scotia Ltd. to lease equipment…
A: The objective of the question is to prepare a lease liability amortization table for Columbia Inc.…
Q: Two or more items are omitted in each of the following tabulations of income statement data. Fill in…
A: Cost of goods sold is the amount of money incurred by the entity on the making of the goods that are…
Q: The following three identical units of Item P401C are purchased during April: Item Beta Units Cost…
A: Under the FIFO method, the oldest products in inventory are sold first.Under the LIFO method, the…
Q: Low Country Goods has four employees and pays them on an hourly basis. During the week beginning…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Compute the value of the 2025 and 2026 inventories using the dollar-value LIFO method.
A: Dollar value LIFO method is one of the methods of inventory valuation, which measures the value of…
Q: The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: Cash $ 49,000 Other…
A: It is an agreement between two or more parties to conduct the business and share the profits and…
Q: Vinubhai
A: The objective of this question is to determine the balance in Bramble Inc's supplies account at the…
Q: Please solve all 4 requirements
A: 1. Schedule of Expected Cash Collections:July August SeptemberCurrent Sales $105,000 $112,000…
Q: The production manager of Rordan Corporation has submitted the following quarterly production…
A: Direct labor budget :— This budget is prepared to estimate the cost of direct labor incurred for…
Q: On January 1, 2022, Pastel Inc. (Pastel) purchased 97,500 voting shares of Sunny Corporation (Sunny)…
A: The cost of investment includes the cash transferred, fair value of assets transferred, fair value…
Q: Black Diamond Company produces snowboards. Each snowboard requires 3 pounds of carbon fiber.…
A: The budget is prepared to estimate the revenues and costs for a period. Direct Labor Budget is…
Q: Ritz Company had the following stock outstanding and Retained Earnings at December 31, 2021: Common…
A: Every business needs money to operate and it can raise money by either issuing shares or raising…
Q: ! Required information [The following information applies to the questions displayed below.] Onslow…
A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: Soprano Co. purchased a 90% interest in the Tenor Co. on January 1, 2020 for P600,000. Any excess of…
A: The objective of the question is to calculate the cost of equity conversion to bring the investment…
Q: ง c The records of Marigold Menswear report the following data for the month of September: Sales…
A: Retail method of inventory valuation is used to estimate store inventory, it measures the cost of…
Q: Integrative Cases 6-73 (Algo) Product Costing, Cost Estimation, and Decision Making (LO 6-1, 2) I…
A: Manufacturing overhead, often called factory overhead or factory burden, is the term used to…
Q: Blue Sky Soda estimates total factory overhead costs of $4,200,000 and total direct labor costs of…
A: Businesses may compute overhead expenses all the way through the production process by employing…
Q: 1. 2. 3. On March 5, Crane recorded a payment of an account payable as $2,710. The correct amount…
A: Bank reconciliation:Bank reconciliation is a statement comparing the cash balance on the company's…
Q: Assume that both Fabricating and Finishing work on just two jobs during the month of March: MP-47…
A: The direct method is one of the methods that is used for allocating the service department costs to…
Q: On April 1, two jobs were in process at Hartwell Contracting. Details of the jobs follow: Job Number…
A: It is the stock held for sale to customers. The inventory comprises of raw materials, work in…
Q: Down Under Products' sales budget for the next four months is as follows: Unit Sales April May June…
A: Production budget :— This budget is prepared to estimate the number of units to be produced for…
Q: Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur…
A: The cash budget is part of the master budget and it shows estimated; cash inflow and cash outflow…
Q: Required Information On January 1, 2024, the general ledger of TNT Fireworks includes the following…
A: The ratio is the technique used by the prospective investor or an individual or strategist to read…
Q: [The following information applies to the questions displayed below.] Summary Information from the…
A: Financial analysis:Financial analysis refers to the evaluation of the financial health and…
Q: 4. Undertake a sensitivity analysis assessing the impact of operating leverage on net income based…
A: The objective of the question is to conduct a sensitivity analysis to assess the impact of operating…
Q: Don't use any AI. It's strictly prohibited. Help me asap thanks.
A: b. $ 899.000Explanation:Step 1:Prepare a proforma income statement basing on the data…
Q: On 30 June 20X7, Edison Ltd acquired all the assets and liabilities of Oliver Ltd, with Oliver Ltd…
A: The objective of the question is to prepare the necessary journal entries in the records of Edison…
Q: Boise, a division of Price Enterprises, currently performs computer services for various departments…
A: To determine the irrelevant costs in Boise's outsourcing decision, we need to identify the costs…
Q: Management is considering the following independent alternatives for 2020. 1. Increase unit selling…
A: The CVP analysis is done by the companies to estimate the units that will bring the desired profit…
Q: The Transaction Register displays: O Deposits from vendors. O Payments received from customers. O…
A: Sales invoice to customer Explanation:Step 1:A transaction register displays a record of all…
Q: Kingston Manufacturing has 28,100 labor hours available for producing X and Y. Consider the…
A: Here are the recommended production schedules:Product X: Produce 6,550 units with a total labor time…
Q: Assume the following excerpts from a company's balance sheet: Beginning Balance Ending Balance Bonds…
A: Cash from financing activities includes inflow or outflow related to debt or equity…
Q: Long-term debt ratio. 0.1 Times interest earned 10.0 Current ratio 1.6 Quick ratio 1.0 Cash ratio…
A: Solution:- Profit and loss accounts, balance sheets, and cash flow statements are the three main…
Q: Required information [The following information applies to the questions displayed below.] Jaguar…
A: A general ledger account shown graphically is called a T account, or general ledger account. An…
Q: I need help with ALL 6 requirements please
A: Let's break down each requirement step by step:### 1. Estimated Sales for the Third Quarter:Given:-…
Q: When you undertook the preparation of the financial statements for Cullumber Company at January 31,…
A: The inventory is a part of the working capital, the entity holds inventory to make sales. Inventory…
Q: Santa Fe Retailing purchased merchandise from Mesa Wholesalers with credit terms of 3/10, n/60 and…
A: Journal entries are the transactions recorded by the business during a given financial year. These…
Sagar
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- Plata Company has identified the following overhead activities, costs, and activity drivers for the coming year: Plata produces two models of microwave ovens with the following activity demands: The companys normal activity is 21,000 machine hours. Calculate the total overhead cost that would be assigned to Model X using an activity-based costing system: a. 230,000 b. 240,000 c. 280,000 d. 190,000Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of direct labor and direct materials per unit for the year are as follows: The standard price paid per pound of direct materials is 1.60. The standard rate for labor is 8.00. Overhead is applied on the basis of direct labor hours. A plantwide rate is used. Budgeted overhead for the year is as follows: The company expects to work 12,000 direct labor hours during the year; standard overhead rates are computed using this activity level. For every small stapler produced, the company produces two regular staplers. Actual operating data for the year are as follows: a. Units produced: small staplers, 35,000; regular staplers, 70,000. b. Direct materials purchased and used: 56,000 pounds at 1.5513,000 for the small stapler and 43,000 for the regular stapler. There were no beginning or ending direct materials inventories. c. Direct labor: 14,800 hours3,600 hours for the small stapler and 11,200 hours for the regular stapler. Total cost of direct labor: 114,700. d. Variable overhead: 607,500. e. Fixed overhead: 350,000. Required: 1. Prepare a standard cost sheet showing the unit cost for each product. 2. Compute the direct materials price and usage variances for each product. Prepare journal entries to record direct materials activity. 3. Compute the direct labor rate and efficiency variances for each product. Prepare journal entries to record direct labor activity. 4. Compute the variances for fixed and variable overhead. Prepare journal entries to record overhead activity. All variances are closed to Cost of Goods Sold. 5. Assume that you know only the total direct materials used for both products and the total direct labor hours used for both products. Can you compute the total direct materials and direct labor usage variances? Explain.Stacks manufactures two different levels of hockey sticks: the Standard and the Slap Shot. The total overhead of $600,000 has traditionally been allocated by direct labor hours, with 400,000 hours for the Standard and 200.000 hours for the Slap Shot. After analyzing and assigning costs to two cost pools, it was determined that machine hours is estimated to have $450.000 of overhead, with 30,000 hours used on the Standard product and 15,000 hours used on the Slap Shot product. It was also estimated that the inspection cost pool would have $150,000 of overhead, with 25,000 hours for the Standard and 5,000 hours for the Slap Shot. What is the overhead rate per product, under traditional and under ABC costing?
- Fisico Company produces exercise bikes. One of its plants produces two versions: a standard model and a deluxe model. The deluxe model has a wider and sturdier base and a variety of electronic gadgets to help the exerciser monitor heartbeat, calories burned, distance traveled, etc. At the beginning of the year, the following data were prepared for this plant: Additionally, the following overhead activity costs are reported: Required: 1. Calculate the cost per unit for each product using direct labor hours to assign all overhead costs. 2. Calculate activity rates and determine the overhead cost per unit. Compare these costs with those calculated using the unit-based method. Which cost is the most accurate? Explain.Lansing. Inc., provided the following data for its two producing departments: Machine hours are used to assign the overhead of the Molding Department, and direct labor hours are used to assign the overhead of the Polishing Department. There are 30,000 units of Form A produced and sold and 50,000 of Form B. Required: 1. Calculate the overhead rates for each department. 2. Using departmental rates, assign overhead to live two products and calculate the overhead cost per unit. How does this compare with the plantwide rate unit cost, using direct labor hours? 3. What if the machine hours in Molding were 1,200 for Form A and 3,800 for Form B and the direct labor hours used in Polishing were 5,000 and 15,000, respectively? Calculate the overhead cost per unit for each product using departmental rates, and compare with the plantwide rate unit costs calculated in Requirement 2. What can you conclude from this outcome?The Lubbock plant of Morrils Small Motor Division produces a major subassembly for a 6.0 horsepower motor for lawnmowers. The plant uses a standard costing system for production costing and control. The standard cost sheet for the subassembly follows: During the year, the Lubbock plant had the following actual production activity: a. Production of subassemblies totaled 50,000 units. b. A total of 260,000 pounds of raw materials was purchased at 4.70 per pound. c. There were 60,000 pounds of raw materials in beginning inventory (carried at 5 per lb.) There was no ending inventory. d. The company used 82,000 direct labor hours at a total cost of 1,066,000. The Lubbock plants practical activity is 60,000 units per year. Standard overhead rates are computed based on practical activity measured in standard direct labor hours. Required: 1. CONCEPTUAL CONNECTION Compute the materials price and usage variances. Of the two materials variances, which is viewed as the more controllable? To whom would you assign responsibility for the usage variance in this case? Explain. 2. CONCEPTUAL CONNECTION Compute the labor rate and efficiency variances. Who is usually responsible for the labor efficiency variance? What are some possible causes for this variance? 3. CONCEPTUAL CONNECTION Assume that the purchasing agent for the small motors plant purchased a lower-quality raw material from a new supplier. Would you recommend that the plant continue to use this cheaper raw material? If so, what standards would likely need revision to reflect this decision? Assume that the end products quality is not significantly affected. 4. Prepare all possible journal entries.
- Evans, Inc., has a unit-based costing system. Evanss Miami plant produces 10 different electronic products. The demand for each product is about the same. Although they differ in complexity, each product uses about the same labor time and materials. The plant has used direct labor hours for years to assign overhead to products. To help design engineers understand the assumed cost relationships, the Cost Accounting Department developed the following cost equation. (The equation describes the relationship between total manufacturing costs and direct labor hours; the equation is supported by a coefficient of determination of 60 percent.) Y=5,000,000+30X,whereX=directlaborhours The variable rate of 30 is broken down as follows: Because of competitive pressures, product engineering was given the charge to redesign products to reduce the total cost of manufacturing. Using the above cost relationships, product engineering adopted the strategy of redesigning to reduce direct labor content. As each design was completed, an engineering change order was cut, triggering a series of events such as design approval, vendor selection, bill of materials update, redrawing of schematic, test runs, changes in setup procedures, development of new inspection procedures, and so on. After one year of design changes, the normal volume of direct labor was reduced from 250,000 hours to 200,000 hours, with the same number of products being produced. Although each product differs in its labor content, the redesign efforts reduced the labor content for all products. On average, the labor content per unit of product dropped from 1.25 hours per unit to one hour per unit. Fixed overhead, however, increased from 5,000,000 to 6,600,000 per year. Suppose that a consultant was hired to explain the increase in fixed overhead costs. The consultants study revealed that the 30 per hour rate captured the unit-level variable costs; however, the cost behavior of other activities was quite different. For example, setting up equipment is a step-fixed cost, where each step is 2,000 setup hours, costing 90,000. The study also revealed that the cost of receiving goods is a function of the number of different components. This activity has a variable cost of 2,000 per component type and a fixed cost that follows a step-cost pattern. The step is defined by 20 components with a cost of 50,000 per step. Assume also that the consultant indicated that the design adopted by the engineers increased the demand for setups from 20,000 setup hours to 40,000 setup hours and the number of different components from 100 to 250. The demand for other non-unit-level activities remained unchanged. The consultant also recommended that management take a look at a rejected design for its products. This rejected design increased direct labor content from 250,000 hours to 260,000 hours, decreased the demand for setups from 20,000 hours to 10,000 hours, and decreased the demand for purchasing from 100 component types to 75 component types, while the demand for all other activities remained unchanged. Required: 1. Using normal volume, compute the manufacturing cost per labor hour before the year of design changes. What is the cost per unit of an average product? 2. Using normal volume after the one year of design changes, compute the manufacturing cost per hour. What is the cost per unit of an average product? 3. Before considering the consultants study, what do you think is the most likely explanation for the failure of the design changes to reduce manufacturing costs? Now use the information from the consultants study to explain the increase in the average cost per unit of product. What changes would you suggest to improve Evanss efforts to reduce costs? 4. Explain why the consultant recommended a second look at a rejected design. Provide computational support. What does this tell you about the strategic importance of cost management?Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: How much is the overhead allocated to each unit of Generic and Label?Eclipse Motor Company manufactures two types of specialty electric motors, a commercial motor and a residential motor, through two production departments, Assembly and Testing. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering using the multiple production department factory overhead rate method. The following factory overhead was budgeted for Eclipse: Direct machine hours were estimated as follows: In addition, the direct machine hours (dmh) used to produce a unit of each product in each department were determined from engineering records, as follows: a. Determine the per-unit factory overhead allocated to the commercial and residential motors under the single plantwide factory overhead rate method, using direct machine hours as the allocation base. b. Determine the per-unit factory overhead allocated to the commercial and residential motors under the multiple production department factory overhead rate method, using direct machine hours as the allocation base for each department. c. Recommend to management a product costing approach, based on your analyses in (a) and (b). Support your recommendation.
- Tri-bikes manufactures two different levels of bicycles: the Standard and the Extreme. The total overhead of $300,000 has traditionally been allocated by direct labor hours, with 150.000 hours for the Standard and 50,000 hours for the Extreme. After analyzing and assigning costs to two cost pools, it was determined that machine hours is estimated to have $200,000 of overhead, with 4,000 hours used on the Standard product and 1,000 hours used on the Extreme product. k was also estimated that the setup cost pool would have $100000 of overhead, with 1,000 hours for the Standard and 1,500 hours for the Extreme. What is the overhead rate per product, under traditional and under ABC costing?Pelder Products Company manufactures two types of engineering diagnostic equipment used in construction. The two products are based upon different technologies, X-ray and ultrasound, but are manufactured in the same factory. Pelder has computed the manufacturing cost of the X-ray and ultrasound products by adding together direct materials, direct labor, and overhead cost applied based on the number of direct labor hours. The factory has three overhead departments that support the single production line that makes both products. Budgeted overhead spending for the departments is as follows: Pelders budgeted manufacturing activities and costs for the period are as follows: The budgeted cost to manufacture one ultrasound machine using the activity-based costing method is: a. 225. b. 264. c. 293. d. 305.Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following standard cost sheet: Algers computes its overhead rates using practical volume, which is 54,000 units. The actual results for the year are as follows: a. Units produced: 53,000 b. Direct materials purchased: 274,000 pounds at 2.50 per pound c. Direct materials used: 270,300 pounds d. Direct labor: 40,100 hours at 17.95 per hour e. Fixed overhead: 161,700 f. Variable overhead: 122,000 Required: 1. Compute price and usage variances for direct materials. 2. Compute the direct labor rate and labor efficiency variances. 3. Compute the fixed overhead spending and volume variances. Interpret the volume variance. 4. Compute the variable overhead spending and efficiency variances. 5. Prepare journal entries for the following: a. The purchase of direct materials b. The issuance of direct materials to production (Work in Process) c. The addition of direct labor to Work in Process d. The addition of overhead to Work in Process e. The incurrence of actual overhead costs f. Closing out of variances to Cost of Goods Sold