A Company plans to produce 24,000 units next period at a denominator activity of 48,000 direct...

A Company plans to produce 24,000 units next period at a denominator activity of 48,000 direct labor-hours. The direct labor wage rate is $11.00 per hour. The company's standards allow 2 yards of direct materials for each unit of product; the material costs $7.90 per yard. The company's budget includes variable manufacturing overhead cost of $1.90 per direct labor-hour and fixed manufacturing overhead of $240,000 per period.

Required:

1. Using 48,000 direct labor-hours as the denominator activity, compute the predetermined overhead rate and break it down into variable and fixed elements.

2. Complete the standard cost card below for one unit of product.

Expert Solution

let me know if u have any concerns

ekkarill92 answered 2 years ago

1.In the predetermined factory overhead rate the budgeted activity units used in the denominator or formula...

1.In the predetermined factory overhead rate the budgeted activity units used in the denominator or formula known as cost driver are measured in all the following except: Select one: a. direct labor hours b. machine hours c. direct labor costs d. indirect labor costs e. production units 2.Activity-based costs include the following steps except: Select one: a. identify activities that consume resources b. identify the cost drivers associated with each activity or activity pool c. calculate an applied rate for...

Milden Company is a merchandiser that plans to sell 37,000 units during the next quarter at...

Milden Company is a merchandiser that plans to sell 37,000 units during the next quarter at a selling price of $55 per unit. The company also gathered the following cost estimates for the next quarter: Cost Cost Formula Cost of good sold $27 per unit sold Advertising expense $184,000 per quarter Sales commissions 5% of sales Shipping expense $24,000 per quarter + $5.00 per unit sold Administrative salaries $94,000 per quarter Insurance expense $10,400 per quarter Depreciation expense $64,000 per...

Milden Company is a merchandiser that plans to sell 25,000 units during the next quarter at...

Milden Company is a merchandiser that plans to sell 25,000 units during the next quarter at a selling price of $52 per unit. The company also gathered the following cost estimates for the next quarter: Cost Cost Formula Cost of good sold $22 per unit sold Advertising expense $172,000 per quarter Sales commissions 5% of sales Shipping expense $54,000 per quarter + $6.00 per unit sold Administrative salaries $82,000 per quarter Insurance expense $9,200 per quarter Depreciation expense $52,000 per...

Milden Company is a merchandiser that plans to sell 27,000 units during the next quarter at...

Milden Company is a merchandiser that plans to sell 27,000 units during the next quarter at a selling price of $53 per unit. The company also gathered the following cost estimates for the next quarter: Cost Cost Formula Cost of good sold $23 per unit sold Advertising expense $173,000 per quarter Sales commissions 6% of sales Shipping expense $68,000 per quarter + $5.00 per unit sold Administrative salaries $83,000 per quarter Insurance expense $9,300 per quarter Depreciation expense $53,000 per...

Q . A company is maufacturing 5000 units for the period. Actual and standard direct materials...

Q . A company is maufacturing 5000 units for the period. Actual and standard direct materials information are: - Standard Costs: 1.5 pounds per unit; purchase price is 0.78 per pound. Actual Costs: 8000 pounds purchased and used; purchase price is 0.75 per pound. Find material price variance. Also tell if it's favourable or unfavourable. Q. A company is maufacturing 5000 units for the period. Actual and standard direct materials information are: - Standard Costs: 1.5 pounds per unit; purchase...

Yancey Company expects to produce 2,070 units in January that will require 12,420 hours of direct...

Yancey Company expects to produce 2,070 units in January that will require 12,420 hours of direct labor and 2,270 units in February that will require 13,620 hours of direct labor. Yancey budgets $5 per unit for variable manufacturing overhead, $2,100 per month for depreciation,and $117,250 per month for other fixed manufacturing overhead costs. Prepare Yancey's manufacturing overhead budget fofr January and February, including the predetfermined overhead allocation rate using direct labor hours as the allocation base.

Produce a direct materials budget with the following additional information. Units = 83,000 Direct material Cost...

Produce a direct materials budget with the following additional information. Units = 83,000 Direct material Cost Usage Steel $8.00/lb 12.100 oz/unit Plastic $3.50/lb 10.897 oz/unit What is the total direct materials cost? Note: lb = pound = 16 oz

Hanover Binding plans to produce 40,000 books next year at a total cost of $1,640,000 with...

Hanover Binding plans to produce 40,000 books next year at a total cost of $1,640,000 with a selling price per book of $66.00. The fixed costs total $280,000. Management is considering lowering the price to $60.00 per book, and feels that this action will cause sales to climb to 50,000 books. What is the amount of incremental profit if 50,000 books are sold? $20,000 profit $1,700,000 profit $1,300,000 profit $340,000 prof

Loring Company incured the following costs last year: Direct Materials $216,000 Factory Rent 24,000 Direct Labor...

Loring Company incured the following costs last year: Direct Materials $216,000 Factory Rent 24,000 Direct Labor 120,000 Factory Utilities 6,300 Supervision in the factory 50,000 Indirect labor in the factory 30,000 Depreciation on factory equipment 9,000 Sales commissions 27,000 Sales salaries 65,000 Advertising 37,000 Depreciation on the headquarters building 10,000 Salary of the corporate receptionist 30,000 Other administrative costs 175,000 Salary of the factory receptionist 28,000 Required: 1. Classify each of the costs using the following table format in excel...

Farrow Co. expects to sell 400,000 units of its product in the next period with the...

Farrow Co. expects to sell 400,000 units of its product in the next period with the following results. Sales (400,000 units) $ 6,000,000 Costs and expenses Direct materials 800,000 Direct labor 1,600,000 Overhead 400,000 Selling expenses 600,000 Administrative expenses 1,028,000 Total costs and expenses 4,428,000 Net income $ 1,572,000 The company has an opportunity to sell 40,000 additional units at $13 per unit. The additional sales would not affect its current expected sales. Direct materials and labor costs per unit...

Question