Globe Company manufactures product Z97, which incurs costs of $175 for direct materials and $140 for...

Globe Company manufactures product Z97, which incurs costs of $175 for direct materials and $140 for direct labour per unit. The company estimated its production overhead and direct labour hours for the month as follows:

	Department A	Department B	Department C
Overhead costs	$95,000	$127,000	$83,000
Direct labour hours	4,500	12,000	5,500

Each unit of product Z97 is produced using:

15 labour hours in department A
10 labour hours in department B, and
9 labour hours in department C

Calculate the cost of one unit of product Z97 using a company-wide overhead rate assuming the allocation base is direct labour hours.

Jetsons Jetpacks manufactures jetpacks and uses divisional-based costing to allocate overhead on the basis of direct labour hours. Direct materials and direct labour costs per sprocket are $197 and $103, respectively.

Producing one jetpack requires 32 labour hours comprised of:

15 hours in machining
10 hours in assembly, and
7 hours in finishing

Information for each department is as follows:

	Cutting	Assembly	Finishing
Overhead costs	$185,000	$102,000	$75,000
Direct labour hours	30,000	8,000	15,000

Calculate the total cost of producing one jetpack.

3. Bedazzled Jewellers manufactures bracelets and necklaces, and uses activity-based costing to allocate its overhead costs. The annual production of bracelets and necklaces is 2,300 and 3,500 respectively. The cost driver for each activity is machine hours. Information relating to each activity is as follows:

		Number of Machine Hours
Activity Cost Pool	Estimated Overhead	Bracelet	Necklace	Total
Activity 1: Molding	$25,000	250	300	550
Activity 2: Finishing	$42,000	750	550	1,300
Activity 3: Polishing	$78,000	1,900	1,700	3,600

Calculate the overhead cost per bracelet.

Expert Solution

ekkarill92 answered 1 year ago

Oriole Company purchases $52,900 of direct raw materials and it incurs $63,400 of direct factory labor costs.

Oriole Company purchases $52,900 of direct raw materials and it incurs $63,400 of direct factory labor costs.Record the two transactions using the following format. The materials and labor are for the Assembly Department and the Finishing Department. (Enter negative amounts using either a negative sign preceding the number e.g. (45).

Sara's company manufactures a product with the following costs: Per Unit Per Year Direct materials $...

Sara's company manufactures a product with the following costs: Per Unit Per Year Direct materials $ 25.30 Direct labor $ 14.30 Variable manufacturing overhead $ 2.50 Fixed manufacturing overhead $ 1,275,000 Variable selling and administrative expenses $ 2.40 Fixed selling and administrative expenses $ 1,249,500 The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 85,000 units per year. The company has invested $260,000 in...

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...

Rippey Corporation manufactures a single product with the following unit costs for 5,000 units: Direct materials...

Rippey Corporation manufactures a single product with the following unit costs for 5,000 units: Direct materials $ 60 Direct labor 30 Factory overhead (40% variable) 90 Selling expenses (60% variable) 30 Administrative expenses (20% variable) 15 Total per unit $225 Recently, a company approached Rippey Corporation about buying 1,000 units for $225. Currently, the models are sold to dealers for $412.50. Rippey's capacity is sufficient to produce the extra 1,000 units. No additional selling expenses would be incurred on...

Upstate Co. manufactures a product that has the following standard costs per unit: Direct materials:...

Upstate Co. manufactures a product that has the following standard costs per unit: Direct materials: 40 yards at $2.70 per yard $108 Direct labor: 7 hours at $18 per hour 126 Total $234 Following information pertains to July: Direct material purchased: 42,500 yards at $2.78 per yard Direct material used: 38,000 yards Direct labor used: 7,500 hours at $18.30 per hour Budgeted production: 1,200 units Actual completed production: 1,050 units...

Lorraine manufactures a single product with the following full unit costs for 3,000 units: Direct materials...

Lorraine manufactures a single product with the following full unit costs for 3,000 units: Direct materials $80 Direct labor 40 Manufacturing overhead (40% variable) 120 Selling expenses (60% variable) 40 Administrative expenses (10% variable) 20 Total per unit $300 A company recently approached Lorraine with a special order to purchase 500 units for $300. Lorraine currently sells the models to dealers for $550. Capacity is sufficient to produce the extra 1,000 units. No selling expenses would be incurred on the...

Wright, Inc. manufactures a product that has the following standard costs: Direct materials: 30 yards at...

Wright, Inc. manufactures a product that has the following standard costs: Direct materials: 30 yards at $4.75 per yard $142.50 Direct labor: 7 hours at $18.00 per hour 126.00 Total $268.50 The following information pertains to July: Direct material costs 20,000 yards at $4.50 per yard, or $90,000 (quantity purchased and quantity used are the same). Direct labor: 4,500 hours at $18.25 per hour, or $82,125 Actual completed production: 650 units Answer and Show Work: Calculate the following variances...

1. For the month of July, Jacobs Company incurs a direct materials cost of $6,000 for...

1. For the month of July, Jacobs Company incurs a direct materials cost of $6,000 for 6,000 gallons of paint produced in its Mixing Department. It also incurs conversion costs of $1,470 with 70% completed. If the conversion cost per equivalent unit was $0.25 per gallon in June, what is the difference in the conversion cost per equivalent unit between the two months? a.$0.10 b.$0.35 c.$1.00 d.$0.75 2. During the current month, Grey Company transferred 60,000 units of finished production...

The standard cost sheet for Chambers Company, which manufactures one product, follows: Direct materials, 40 yards...

The standard cost sheet for Chambers Company, which manufactures one product, follows: Direct materials, 40 yards at $2.00 per yard $ 80 Direct labor, 5 hours at $20 per hour 100 Factory overhead applied at 80% of direct labor 80 (variable costs = $60; fixed costs = $20) Variable selling and administrative 64 Fixed selling and administrative 40 Total unit costs $ 364 Standards have been computed based on a master budget activity level of 28,800 direct labor-hours per month....

Belfast Industries manufactures a single product, the standard cost of which is: Direct materials – 6...

Belfast Industries manufactures a single product, the standard cost of which is: Direct materials – 6 kgs @ £4 kg £24.00 Direct labour – 2 hour @ £8 hour £16.00 Variable overhead – 2 hour @ £6 hr £12.00 Fixed overhead – 2 hour @ £10 hr £20.00 Total per unit £72.00 Other data relating to the standard cost: * The fixed overhead rate is based on a budgeted output of 4,000 units per month. * The standard selling price...

Question