Question
In: Accounting
Budget Actual Indirect cost 173340 123950 DL hour 8100 6700 Company ABC is a bakery that...
| Budget | Actual | |
| Indirect cost | 173340 | 123950 |
| DL hour | 8100 | 6700 |
Company ABC is a bakery that specializes in making and selling customized baked goods for all occasions. The company incurs direct materials, direct labor, and indirect costs. It has a job-costing system with one cost pool for its indirect costs, and it uses direct labor hours as its allocation base. Company ABC has provided the following data about 2019:
The Bell Birthday Job, which the company filled in July of 2019, was for 10 cupcakes, used $75 of direct materials, and required 5 hours of direct labor. Company ABC pays its direct labor at a rate of $18 per hour.
- Calculate the total cost of the Bell Birthday Job and the per unit cost of a cupcake using normal costing.
- Calculate the total cost of the Bell Birthday Job and the per unit cost of a cupcake using actual costing.
- Explain when Company ABC knows the cost of the Bell Birthday Job you calculated in each of the previous two questions. Be specific – your answers should include a month and year that you expect this information to be available and the reason why you chose that month and year. Question 1 and Question 2:
- Which form of job costing would Company ABC most likely use and why?
- Calculate the under- or overallocated indirect costs for Company ABC in 2019.
- Prepare the adjusting journal entry to dispose of the under- or overallocated indirect costs for Company ABC in 2019 using the writeoff to COGS method. What is the impact of this entry on Company ABC’s gross margin?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
2016 2017 2017 Preliminary Final Actual YTD Actual YTD Budget Cost Standard Budget Standard 2018 Budget...
2016
2017
2017
Preliminary
Final
Actual
YTD Actual
YTD Budget
Cost Standard
Budget Standard
2018 Budget
2018 Budget
Salaries and Wages-V
$346,700
$185,200
$179,000
3.88
Fringe Benefits-V
111,700
59,200
58,000
1.24
Supplies-V
230,600
121,000
119,000
2.54
Depreciation-F
57,400
30,000
29,000
60,000.00
Interest-F
17,800
8,400
9,000
16,800.00
Other-V
207,400
109,300
110,000
2.29
Total Expenses
$971,600
$513,100
$505,000
76,809.95
Patient days
95,000
47,700
47,200
97000
97500
Forecast
2017 Actual
The most obvious cost in a capital budget is the actual cost of the capital expenditure...
The most obvious cost in a capital budget is the actual cost of
the capital expenditure item. We must also consider other costs
that will be incurred when we make the capital expenditure
(purchase). These costs are important to include because they can
be the difference between a successful implementation of the
capital expenditure item and staying on budget. After reviewing the
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Garland Company Budget Performance Report—Supervisor, Chip Fabrication For the Month Ended November 30 Cost Actual Budget...
Garland Company
Budget Performance Report—Supervisor, Chip Fabrication
For the Month Ended November 30
Cost
Actual
Budget
Over Budget
Under Budget
Factory wages
$95,500
$82,000
$13,500
Materials
115,300
120,000
$(4,700)
Power and light
49,950
45,000
4,950
Maintenance
37,200
28,000
9,200
$297,950
$275,000
$27,650
$(4,700)
a. Complete the budget performance reports by
determining the correct amounts for the lettered spaces (a-l) as
marked above.
a. $
g. $
b. $
h. $
c. $
i. $
d. $
j. $
e. $...
Show me how 2016 2017 2017 Preliminary Final Actual YTD Actual YTD Budget Cost Standard Budget...
Show me how
2016
2017
2017
Preliminary
Final
Actual
YTD Actual
YTD Budget
Cost Standard
Budget Standard
2018 Budget
2018 Budget
Salaries and Wages-V
$346,700
$185,200
$179,000
3.88
Fringe Benefits-V
111,700
59,200
58,000
1.24
Supplies-V
230,600
121,000
119,000
2.54
Depreciation-F
57,400
30,000
29,000
60,000.00
Interest-F
17,800
8,400
9,000
16,800.00
Other-V
207,400
109,300
110,000
2.29
Total Expenses
$971,600
$513,100
$505,000
76,809.95
Patient days
95,000
47,700
47,200
97000
97500
Forecast
2017 Actual
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Discuss the term cost object in the four level of indirect costs
with in ABC system?
Discuss the term cost object in the four level of indirect costs with in ABC system?
Discuss the term cost object in the four level of indirect costs
with in ABC system?
Discuss the term cost object in the four level of indirect costs with in ABC system?
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with in ABC system?
ABC Company uses a Materials Inventory account to record both direct and indirect materials. ABC charges...
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while indirect materials are charged to the Factory Overhead
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cost information:
Total materials (direct and indirect) purchased
$
90,000
Indirect materials issued to production
30,000
Total materials issued to production
110,000
Beginning materials inventory
50,000
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ABC bakery makes banana cakes on a standard costing basis. Over
the past years, the company has determined a standard materials
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standard price agreed with suppliers at $1.5 per pound.
Historically, the company has been producing 11,000 banana cakes
per month. During the just concluded month May 2020, company
records show 10,500 banana cakes produced with an actual cost of
$13,860 with 8,400 pounds purchased and used in...
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