Question
In: Accounting
Shalder Custom Fridges uses a job costing system to measure and track product costs for its...
Shalder Custom Fridges uses a job costing system to measure and
track product costs for its line of custom-made, highly prestigious
premium quality fridges, to allocate overhead costs to its
products. Overhead costs are expected to be $110 000. The best
estimate for production time in the upcoming year is 22 000 direct
labour hours. Production data for the first quarter of the year for
the following four types of custom fridges (Freeze, Winter, Ice,
and Snow fridge types) is given below:
Freeze Winter Ice Snow
Direct materials used ($)
20,000
17,000
14,000
15,000
Direct labour cost ($) 13,000
12,000
8,000
9,000
Direct labour hours
3,200
3, 000
2, 900
2,900
Required
(A) Calculate the predetermined overhead rate based on direct
labour hours.
(B) Calculate the overhead cost to be assigned to the four fridge
types, separately.
(C) Calculate the total manufacturing cost for each of the four
fridge types.
(D) At the end of the first quarter, Shalder Custom Fridges found
that they have incurred $21 500 for actual overhead. Calculate the
overhead variance for the first quarter.
(E)How might the company improve its product costing system? Please
consider the overhead cost driver being used in answering this
question.
could u teach me the whole solutions of this
question???plz
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Creative Web Design uses a job-order costing system to track the costs of its web design...
Creative Web Design uses a job-order costing system to track the
costs of its web design projects. The company provides complete
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data concerning the three design projects that were in process
during May. There was no work in process at the beginning of
May:
Project
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Jan’s
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Designer-hours
90
70
25
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$
2,430
$
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$
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Actual overhead costs were $4,750 for May....
Clear View is a manufacturer of custom windows and uses a job-costing system at its Orlando,...
Clear View is a manufacturer of custom windows and uses a
job-costing system at its Orlando, FL plant. The plant has a
machining department and a finishing department. Clear View uses
normal costing with two direct-cost categories (direct materials
and direct manufacturing labor) and two manufacturing overhead cost
pools (the machining department with machine-hours as the
allocation base and the finishing department with direct
manufacturing labor costs as the allocation base). The 2014 budget
for the plant is as follows:...
Bronco Company uses normal costing in its job-costing system. The company produces custom bikes for toddlers....
Bronco Company uses normal costing in its job-costing
system. The company produces custom bikes for toddlers. The
beginning balances (December 1) and ending balances (as of
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follows:
Beginning Balance 12/1
Ending Balance 12/30
Material Control
$ 1,500
$ 7,900
Work-in-process control
6,100
8,400
Manufacturing Department Overhead Control
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97,500
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18,800
Additional information follows:
a.
Direct materials purchased during December were $65,700.
b.
Cost of goods manufactured for December...
Bramble Company uses normal costing in its job-costing system. The company produces custom bikes for toddlers....
Bramble Company uses normal costing in its job-costing
system. The company produces custom bikes for toddlers. The
beginning balances (December 1) and ending balances (as of
December 30) in their inventory accounts are as
follows:
Beginning Balance 12/1
Ending Balance 12/30
Material Control
$ 1,800
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Work-in-process control
6,400
8,700
Manufacturing Department Overhead Control
--
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Finished Goods Control
4,100
19,100
Additional information follows:
a. Direct materials purchased during December were $66,000.
b. Cost of goods manufactured for December...
The basic document for keeping track of costs in a job order costing system is a...
The basic document for keeping track of costs in a job order
costing system is a
a.
process cost report.
b.
job order cost card.
c.
labor time card.
d.
materials requisition form.
Which of the following products probably would be manufactured
using a job order costing system?
a.
Computer monitors
b.
Baseball bats
c.
Company business cards
d.
Paper
Which of the following is not a characteristic of a
process costing system?
a.
Manufacturing costs are grouped by processes,...
Kansas Company uses a job costing accounting system for its production costs. The company uses a...
Kansas Company uses a job costing accounting system for its
production costs. The company uses a predetermined overhead rate
based on direct labor-hours to apply overhead to individual jobs.
The company prepared an estimate of overhead costs at different
volumes for the current year as follows.
Direct labor-hours
150,000
180,000
210,000
Variable overhead costs
$
1,200,000
$
1,440,000
$
1,680,000
Fixed overhead costs
612,000
612,000
612,000
Total overhead
$
1,812,000
$
2,052,000
$
2,292,000
The expected volume is 180,000 direct...
Kansas Company uses a job costing accounting system for its production costs. The company uses a...
Kansas Company uses a job costing accounting system for its
production costs. The company uses a predetermined overhead rate
based on direct labor-hours to apply overhead to individual jobs.
The company prepared an estimate of overhead costs at different
volumes for the current year as follows:
Direct labor-hours
150,000
180,000
210,000
Variable overhead costs
$
1,050,000
$
1,260,000
$
1,470,000
Fixed overhead costs
684,000
684,000
684,000
Total overhead
$
1,734,000
$
1,944,000
$
2,154,000
The expected volume is 180,000 direct...
Kansas Company uses a job costing accounting system for its production costs. The company uses a...
Kansas Company uses a job costing accounting system for its
production costs. The company uses a predetermined overhead rate
based on direct labor-hours to apply overhead to individual jobs.
The company prepared an estimate of overhead costs at different
volumes for the current year as follows.
Direct labor-hours
150,000
180,000
210,000
Variable overhead costs
$
900,000
$
1,080,000
$
1,260,000
Fixed overhead costs
630,000
630,000
630,000
Total overhead
$
1,530,000
$
1,710,000
$
1,890,000
The expected volume is 180,000 direct...
Kansas Company uses a job costing accounting system for its production costs. The company uses a...
Kansas Company uses a job costing accounting system for its
production costs. The company uses a predetermined overhead rate
based on direct labor-hours to apply overhead to individual jobs.
The company prepared an estimate of overhead costs at different
volumes for the current year as follows:
Direct
labor-hours
150,000
180,000
210,000
Variable
overhead costs
$
900,000
$
1,080,000
$
1,260,000
Fixed overhead
costs
702,000
702,000
702,000
Total
overhead
$
1,602,000
$
1,782,000
$
1,962,000
The expected volume is 180,000 direct...
a Kansas Company uses a job costing accounting system for its production costs. The company uses...
a
Kansas Company uses a job costing accounting system for its
production costs. The company uses a predetermined overhead rate
based on direct labor-hours to apply overhead to individual jobs.
The company prepared an estimate of overhead costs at different
volumes for the current year as follows:
Direct labor-hours
150,000
180,000
210,000
Variable overhead costs
$
1,050,000
$
1,260,000
$
1,470,000
Fixed overhead costs
594,000
594,000
594,000
Total overhead
$
1,644,000
$
1,854,000
$
2,064,000
The expected volume is 180,000...
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