Problem 1 indirect cost application rates The Flintstones manufacturing company makes hammers that it sells to...

Problem 1 indirect cost application rates
The Flintstones manufacturing company makes hammers that it sells to hardware stores in the Northeast
country. For next year manufacturing overhead costs are expected to be $ 243,000
Estimated data:
The company expects a production of 175,000 hammers, 180,000 hours, for the following year
machine and 36,400 hours of direct labor. The estimated cost of direct materials is
estimated at $ 265,000 and the estimated cost of direct labor at $ 172,460.
The actual data for January were as follows:
24,000 hammers
25,000 machine hours
5,000 hours of direct labor
$ 44,020 direct materials costs
$ 25,000 direct labor costs
It asks:
Calculate rates to apply manufacturing overhead, and determine overhead
applied during January for each of the following bases:
1. Production units
2. MOD costs
3. Direct material costs
4. Machine hours
5. Hours of direct labor

Expert Solution

ekkarill92 answered 4 months ago

Department indirect-cost rates are never activity-cost rates.” Do you agree? Explain.

A manufacturing company makes auto parts and sells them to auto dealers.

A manufacturing company makes auto parts and sells them to auto dealers. Last week the company shipped 25 auto parts to a dealer. Later it found out that 5 of those parts were defective. By the time the company manager contacted the dealer 4 auto parts from that shipment had already been sold. What is the probability that 3 of those 4 parts were non-defective?

Genco Inc. makes a single product that sells for P50. The standard variable manufacturing cost is...

Genco Inc. makes a single product that sells for P50. The standard variable manufacturing cost is P32.50 and the standard fixed manufacturing cost is P7.50, based on producing 20,000 units. During the year Genco produced 22,000 units and sold 21,000 units. Actual fixed manufacturing costs were P157,000; actual variable manufacturing costs were P735,000. Selling and administrative expenses, all fixed, were P75,000. There were no beginning inventories. a. What is the net income under the standard absorption costing income statement?...

Field application problem – A small manufacturing company wants to locate in Elk Grove. It will...

Field application problem – A small manufacturing company wants to locate in Elk Grove. It will hook up to the city water supply, but needs to reduce the tap water pH to 5.5 for a particular production process. A titration test shows that 4 meq/L is needed to do this. The plant manager plans to feed 2.0 N acid into the water line. If the desired flow is 20 gpm, what flowrate of acid is needed? Answer: 0.04 gpm.

Ritchie Manufacturing Company makes a product that it sells for $130 per unit. The company incurs...

Ritchie Manufacturing Company makes a product that it sells for $130 per unit. The company incurs variable manufacturing costs of $66 per unit. Variable selling expenses are $12 per unit, annual fixed manufacturing costs are $450,000, and fixed selling and administrative costs are $226,000 per year. Required Determine the break-even point in units and dollars using each of the following approaches: Use the equation method. Use the contribution margin per unit approach. Prepare a contribution margin income statement for the...

Ritchie Manufacturing Company makes a product that it sells for $140 per unit. The company incurs...

Ritchie Manufacturing Company makes a product that it sells for $140 per unit. The company incurs variable manufacturing costs of $73 per unit. Variable selling expenses are $11 per unit, annual fixed manufacturing costs are $468,000, and fixed selling and administrative costs are $271,200 per year. Required Determine the break-even point in units and dollars using each of the following approaches: Use the equation method. Use the contribution margin per unit approach. Prepare a contribution margin income statement for the...

Ritchie Manufacturing Company makes a product that it sells for $190 per unit. The company incurs...

Ritchie Manufacturing Company makes a product that it sells for $190 per unit. The company incurs variable manufacturing costs of $96 per unit. Variable selling expenses are $18 per unit, annual fixed manufacturing costs are $462,000, and fixed selling and administrative costs are $260,000 per year. Required Determine the break-even point in units and dollars using each of the following approaches: Use the equation method. Use the contribution margin per unit approach. Prepare a contribution margin income statement for the...

A manufacturing company makes the products that it sells. Briefly identify and define the 3 product...

A manufacturing company makes the products that it sells. Briefly identify and define the 3 product cost elements that are incurred in making a product, in the spaces provided below.

Baird Manufacturing Company makes a product that sells for $75 30 per unit Manufacturing costs for the product

Problem 11-23A (Algo) Absorption versus variable costing LO 11-4 Baird Manufacturing Company makes a product that sells for $75 30 per unit Manufacturing costs for the product amount to $26.00 per unit variable, and $74,520 feed. During the current accounting period, Baird made 3.600 units of the product and sold 3.200 units Selling and administrative expenses were zero." Required a. Prepare an absorption costing income statement. b. Prepare a variable costing income statement. Complete this question by entering...

4.Genco Inc. makes a single product that sells for $50. The standard variable manufacturing cost is...

4.Genco Inc. makes a single product that sells for $50. The standard variable manufacturing cost is $32.50 and the standard fixed manufacturing cost is $7.50, based on producing 20,000 units. During the year Genco produced 22,000 units and sold 21,000 units. Actual fixed manufacturing costs were $157,000; actual variable manufacturing costs were $735,000. Selling and administrative expenses, all fixed, were $75,000. There were no beginning inventories. a.Prepare a standard absorption costing income statement. b.Prepare a standard variable costing income statement....

Question