Question
In: Accounting
X Company wants to estimate overhead costs in March, when production is expected to be 1,500...
X Company wants to estimate overhead costs in March, when
production is expected to be 1,500 units. To determine the
parameters of its overhead cost function, it used account analysis
with the January cost information below and when production was was
1,000 units.
| Total | Total Variable | |
| Utilities | $44,000 | $44,000 |
| Maintenance | 57,000 | 27,360 |
| Supervision | 22,000 | 0 |
Using the resulting cost function, what is X Company's estimate of total overhead costs in March?
Solutions
Expert Solution
| Calculations | A | B | C = A - B | D = B / Number of units (1,000) | E = D x Number of units of March (1,500) | F = E+C |
| Particulars | Total cost | Variable cost | Fixed cost | Variable cost per unit | Variable cost for March | Total costs |
| Utilities | 44,000 | 44,000 | - | 44 | 66000 | 66,000 |
| Maintenance | 57,000 | 27,360 | 29,640 | 27.36 | 41040 | 70,680 |
| Supervision | 22,000 | - | 22,000 | 0 | 0 | 22,000 |
| Total overhead March | 1,58,680 | |||||
ekkarill92 answered 1 year agoRelated Solutions
An overhead budget shows the expected cost of all production costs: a.other than fixed overhead items....
An overhead budget shows the expected cost of all production
costs:
a.other than fixed overhead items.
b.other than direct materials and direct labor.
c.including selling and administrative expenses.
d.including direct materials and direct labor.
To create a meaningful performance report, _____.
a.actual costs and prior period costs must be compared at the
same level of activity
b.actual costs and expected costs must be compared at two
different levels of activity
c.actual costs and expected costs must be compared at the...
In March, Oriole Company had the following unit production costs: materials $10 and conversion costs $8....
In March, Oriole Company had the following unit production
costs: materials $10 and conversion costs $8. On March 1, it had no
work in process. During March, Oriole transferred out 28,000 units.
As of March 31, 3,800 units that were 31% complete as to conversion
costs and 100% complete as to materials were in ending work in
process.
a) Compute the total units to be accounted
for:
Total Units:
b) Compute the equivalent units of
production:
The equivalent units of...
Step 5: Manufacturing Overhead Budget Buff Company expects variable overhead costs to fluctuate with production volume...
Step 5: Manufacturing Overhead Budget
Buff Company expects variable overhead costs to fluctuate with
production volume according to the following rates:
Indirect materials: $0.90 per direct labor
Indirect labor: $1.70 per direct labor
Utilities: $0.30 per direct labor
Maintenance: $0.10 per direct labor
Buff Company also incurs fixed overhead costs. The amounts of
fixed overhead costs are already provided in the budget below. Use
this information to complete the manufacturing overhead budget.
Buff Company Manufacturing Overhead Sales Budget
For the...
Wheat Manufacturing has four categories of overhead. The four categories and the expected overhead costs for...
Wheat Manufacturing has four categories of overhead. The four
categories and the expected overhead costs for each
category for next year are as follows:
Wheat Manufacturing has four categories of overhead. The four
categories and the expected overhead costs
for each category for next year are as follows:
Maintenance £120,000
Materials handling £18,000
Setups £16,000
Inspection £60,000
The company has been asked to determine the full cost for a
proposed job. Estimates for the proposed job
are as follows:
Direct...
Mattawa Manufacturing Inc. has four categories of overhead. The expected overhead costs for each of the...
Mattawa Manufacturing Inc. has four categories of overhead. The
expected overhead costs for each of the categories for the next
year are as follows:
Expected Costs Cost Driver
Activity Maintenance $510,000
Machine hours 60,000
Material handling 250,000
Material moves 20,000
Setups 60,000
Setups 3,000
Inspection 21,000
Inspections 12,000
Currently, the company applies overhead using a predetermined
overhead rate based upon budgeted direct labour hours of 100,000.
The company has been asked to submit a bid on a proposed job.
Usually...
1.) AB Company has the following production information available for March: Total materials costs
1.) AB Company has the following production information
available for March:
Total materials costs
$147,000
Equivalent number of complete units of materials
15,000
Total conversion costs
$ 75,000
Equivalent number of complete units of conversion costs
12,000
The total manufacturing cost per unit (rounded to nearest cent)
is closest to:
A. $6.25
B. $9.80
C. $16.05
D. $8.22
2.) ABD Company, materials purchases and uses during the first
quarter are as follows:
Jan. 11, purchased 500...
Discuss "Overhead Costs" and the difficulty it causes when dealing with manufacturing costs.
Discuss "Overhead Costs" and the difficulty it causes when
dealing with manufacturing costs.
Haughton Company uses a job costing system for its production costs and a predetermined factory overhead...
Haughton Company uses a job costing system for its production
costs and a predetermined factory overhead rate based on direct
labor costs to apply factory overhead to all jobs. During the month
of July, the firm processed three jobs: X13, X14, and X15, of which
X13 was started in June.
Account
July 1
July 31
Iventories
Direct Materials
38,300
?
Work - In - Process
44600
?
Finished Goods
0
0
COGS
?
Direct Materials Purchased in July
73,000
Materials...
Haughton Company uses a job costing system for its production costs and a predetermined factory overhead...
Haughton Company uses a job costing system for its production
costs and a predetermined factory overhead rate based on direct
labor costs to apply factory overhead to all jobs. During the month
of July, the firm processed three jobs: X13, X14, and X15, of which
X13 was started in June.
Account
July 1
July 31
Iventories
Direct Materials
38,300
?
Work - In - Process
44600
?
Finished Goods
0
0
COGS
?
Direct Materials Purchased in July
73,000
Materials...
Haughton Company uses a job costing system for its production costs and a predetermined factory overhead...
Haughton Company uses a job costing system for its production
costs and a predetermined factory overhead rate based on direct
labor costs to apply factory overhead to all jobs. During the month
of July, the firm processed three jobs: X13, X14, and X15, of which
X13 was started in June.
July 1
July 31
Inventories
Direct Materials
$
36,500
?
Work-in-Process
41,000
?
Finished Goods
0
0
Cost of Goods Sold
$
?
Direct materials purchased in July
55,000
Materials...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- What is a hijra, and what is their function within traditional Indian society? Describe in 400...
- what is personal compitive advantage ?indentify your personal style (you can ive example of you personal...
- As Jupiter industries expands its MENA locations, what international staffing strategy model (or combination of models)...
- Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct...
- he following information is available for Sage Hill, Inc. for the year 2017. Administrative expense Officers'...
- The year has passed and Ron has become used to being able to come to you...
- J&J, Inc., manufactures two products that it sells to the same market. Excerpted below are its...
ADVERTISEMENT