Hamilton Manufacturing Company Direct materials 175,000 Materials handling 35,000 Grinding 300,000 Polishing 100,000 Product Modification 500,000...

Hamilton Manufacturing Company Direct materials 175,000 Materials handling 35,000 Grinding 300,000 Polishing 100,000 Product Modification 500,000 Providing Power 225,000 System Calibration 400,000 Machine Hours 37,500 units Direct Labor Hours 15,000 Engineering hours 1,200 Batches 200 Materials handling based on direct material cost Grinding based on machine hours Polishing based on machine hours Product Modification based on engineering hours Providing Power based on direct labor hours System Calibration based on batches Job 231 Completed 1,675 units Direct Materials 18,500 Direct labor hours 350 Machine hours 755 Engineering hours 245 Batches 35 Using the ABC Method find the activity overhead rates. Once you have those activity rates find the total cost of Job 231 including materials and the cost per unit

Expert Solution

Solution:

Computation of Activity rates
Activity cost pool	Overhead costs	Activities	Activity Rate
Material Handling	$35,000	175000	20%	% of Direct material Cost
Grinding	$3,00,000	37500	$8.00	Per machine hour
Polishing	$1,00,000	37500	$2.67	Per machine hour
Product modification	$5,00,000	1200	$416.67	per engineering hour
Providing power	$2,25,000	15000	$15.00	per direct labor hour
System Calibration	$4,00,000	200	$2,000.00	per batch

Computation of Overhead assigned to Job
Activity	Activity Rate		Activities	Overhead Allocated
Material Handling	20%	% of Direct material Cost	18500	$3,700
Grinding	$8.00	Per machine hour	755	$6,040
Polishing	$2.67	Per machine hour	755	$2,013
Product modification	$416.67	per engineering hour	245	$1,02,083
Providing power	$15.00	per direct labor hour	350	$5,250
System Calibration	$2,000.00	per batch	35	$70,000

Total Cost assigned				$1,89,087

Computation of Total cost and Units Cost
Materials Cost	$18,500
Allocated cost	$1,89,087
Total Costs	$2,07,587
No. of units	1675
Cost per unit	$123.93

ekkarill92 answered 5 months ago

Hamilton Manufacturing Company Direct materials 175,000 Materials handling 35,000 Grinding &nbs

Hamilton Manufacturing Company Direct materials 175,000 Materials handling 35,000 Grinding 300,000 Polishing 100,000 Product Modification 500,000 Providing Power 225,000 System Calibration 400,000 Machine Hours 37,500 units Direct Labor Hours 15,000 Engineering hours 1,200 Batches 200 Materials handling based on direct material cost Grinding based on machine hours Polishing based on machine hours Product Modification based on engineering hours Providing Power based on direct labor hours System Calibration based on...

Roofing Manufacturers had a beginning work-in-progress of $500,000. The company used $300,000 in direct materials and...

Roofing Manufacturers had a beginning work-in-progress of $500,000. The company used $300,000 in direct materials and $500,000 in labor and applied factory overhead at 200% of direct materials. At the end of the month, the company had an ending work-in-progress of $750,000. Record necessary journal entries to record the (1) direct materials used, (2) direct labor used, (3) applied overhead and (4) the transfer of completed work-in-progress from molding department to finishing department. (20 Points)

Hamilton company applies manufacturing overhead costs to product based on direct labor hours. the company estimates...

Hamilton company applies manufacturing overhead costs to product based on direct labor hours. the company estimates manufacturing overhead cots for the year to be 280000 and direct labor hours to be 20000. actual overhead and actual direct labor hours for the year were 335000 and 25000 hour respectively required 1. compute over or underapplied overhead 2a. which accounts will be affected by the over- or underapplied manufacturing overhead ? 2b. will the accounts be increased or decreased to abjust for...

Tanner Manufacturing Expected Job No. 26 to cost $300,000 of overhead, $500,000 of materials, and $200,000...

Tanner Manufacturing Expected Job No. 26 to cost $300,000 of overhead, $500,000 of materials, and $200,000 in labor. Tanner applied overhead based on direct labor cost. Actual production required an overhead cost of $290,000, $550,000 in materials used, and $220,000 in labor. All of the goods were completed. What amount was transferred to Finished Goods? $1,000,000 $1, 060,000 $1, 070,000 $1, 100,000

Two different polishing materials are being evaluated for use in machining operations in a manufacturing company....

Two different polishing materials are being evaluated for use in machining operations in a manufacturing company. One hundred machine parts were polished using polishing material A and of this number 87 had no polishing-included defects. Another 100 machine parts were polished using polishing material B and 75 parts were satisfactory upon completion. Is there any reason to believe that the two polishing materials differ? Use α = 0.02.

Account Classification Amount Direct materials All variable $300,000 Direct manufacturing labor All variable 225,000 Power All...

Account Classification Amount Direct materials All variable $300,000 Direct manufacturing labor All variable 225,000 Power All variable 37,500 Supervision labor 20% variable 56,250 Materials-handling labor 50% variable 60,000 Maintenance labor 40% variable 75,000 Depreciation 0% variable 98,000 Rent, property taxes, and administration 0% variable 125,000 a. Direct materials prices in 2015 are expected to increase by 88% compared with 2014. b. Under the terms of the labor contract, direct manufacturing labor wage rates are expected to increase by 44% in...

A company with fixed manufacturing costs of $500,000 produces 100,000 units in 2020 and 125,000 units...

A company with fixed manufacturing costs of $500,000 produces 100,000 units in 2020 and 125,000 units in 2021. The company sells 90,000 units each in both years. Other costs and selling price are unchanged for 2020 and 2021. Assume that there was no beginning inventory in 2020. Which of the following is true? Variable costing income will be greater in 2020 than in 2021. The dollar amount of ending inventory will be greater in 2020 than in 2021. Variable costing...

Kristopher Company has budgeted sales of $300,000 with the following budgeted costs: Direct materials &nb

Kristopher Company has budgeted sales of $300,000 with the following budgeted costs: Direct materials $60,000 Direct manufacturing labor 40,000 Factory overhead Variable 30,000 Fixed 50,000 Selling and administrative expenses Variable 20,000 Fixed 30,000 Required (10 points): Compute the average markup percentage for setting prices as a percentage of: The full cost of the product The variable cost of the product Variable manufacturing costs Total manufacturing costs

Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 35,000 passenger car tires and...

Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 35,000 passenger car tires and 11,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires according to the following table: Passenger Car Truck Rubber 25 lbs. per unit 58 lbs. per unit Steel belts 7 lbs. per unit 18 lbs. per unit The purchase prices of rubber and steel are $3.2 and $4.2 per pound, respectively. The desired ending inventories of rubber and...

6) The following information relates to a product produced by Creamer Company: Direct materials $20.6 Direct...

6) The following information relates to a product produced by Creamer Company: Direct materials $20.6 Direct labor 17.4 Variable overhead 35.96 Fixed overhead 15.14 Fixed selling costs are $444,780 per year. Although production capacity is 600,000 units per year, the company expects to produce only 400,000 units next year. The product normally sells for $200 each. A customer has offered to buy 60,000 units for $120 each. If the firm produces the special order, what is the effect on income?...

Question