Question
In: Accounting
Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator....
Tiger Furnishings produces two models of cabinets for home
theater components, the Basic and the Dominator. Data on operations
and costs for March follow:
| Basic | Dominator | Total | |||||||
| Units produced | 1,180 | 390 | 1,570 | ||||||
| Machine-hours | 3,100 | 2,900 | 6,000 | ||||||
| Direct labor-hours | 2,200 | 2,100 | 4,300 | ||||||
| Direct materials costs | $ | 18,000 | $ | 5,750 | $ | 23,750 | |||
| Direct labor costs | 63,000 | 47,000 | 110,000 | ||||||
| Manufacturing overhead costs | 187,810 | ||||||||
| Total costs | $ | 321,560 | |||||||
Tiger Furnishings’s CFO believes that a two-stage cost allocation
system would give managers better cost information. She asks the
company’s cost accountant to analyze the accounts and assign
overhead costs to two pools: overhead related to direct labor cost
and overhead related to machine-hours.
The analysis of overhead accounts by the cost accountant follows:
| Manufacturing Overhead | Overhead Estimate |
Cost Pool Assignment | |
| Utilities | $ | 1,500 | Machine-hour related |
| Supplies | 4,300 | Direct labor cost related | |
| Training | 8,600 | Direct labor cost related | |
| Supervision | 25,800 | Direct labor cost related | |
| Machine depreciation | 27,000 | Machine-hour related | |
| Plant depreciation | 19,500 | Machine-hour related | |
| Miscellaneous | 101,110 | Direct labor cost related | |
Required:
b. Compute the product costs per unit assuming that Tiger Furnishings uses direct labor costs and machine-hours to allocate overhead to the products. (Do not round intermediate calculations. Round your final answers to the nearest whole number.)
|
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator....
Tiger Furnishings produces two models of cabinets for home
theater components, the Basic and the Dominator. Data on operations
and costs for March follow:
Basic
Dominator
Total
Units produced
950
400
1,350
Machine-hours
3,000
2,100
5,100
Direct labor-hours
3,900
2,600
6,500
Direct materials costs
$
11,000
$
3,400
$
14,400
Direct labor costs
71,300
36,400
107,700
Manufacturing overhead costs
220,350
Total costs
$
342,450
Required:
Compute the predetermined overhead rate assuming that Tiger
Furnishings uses direct labor-hours to allocate overhead...
Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator....
Tiger Furnishings produces two models of cabinets for home
theater components, the Basic and the Dominator. Data on operations
and costs for March follow:
Basic Dominator Total
Units produced 1,000 450 1,450
Machine-hours 3,000 2,800 5,800
Direct labor-hours 2,900 2,300 5,200
Direct materials costs $ 8,200 $ 3,350 $ 11,550
Direct labor costs 58,700 31,300 90,000
Manufacturing overhead costs 183,560
Total costs $ 285,110
Required:
Compute the predetermined overhead rate assuming that Tiger
Furnishings uses direct labor-hours to allocate overhead...
Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator....
Tiger Furnishings
produces two models of cabinets for home theater components, the
Basic and the Dominator. Data on operations and costs for March
follow:
Basic
Dominator
Total
Units produced
1,500
250
1,750
Machine-hours
4,000
2,000
6,000
Direct
labor-hours
2,000
1,000
3,000
Direct materials
costs
$
10,000
$
4,000
$
14,000
Direct labor
costs
64,000
40,000
104,000
Manufacturing
overhead costs
182,520
Total costs
$
300,520
Required:
Compute the individual
product costs per unit assuming that Tiger Furnishings uses
machine-hours to allocate...
Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator....
Tiger Furnishings
produces two models of cabinets for home theater components, the
Basic and the Dominator. Data on operations and costs for March
follow:
Basic
Dominator
Total
Units produced
1,500
250
1,750
Machine-hours
3,000
2,000
5,000
Direct
labor-hours
4,000
3,000
7,000
Direct materials
costs
$
10,000
$
3,500
$
13,500
Direct labor
costs
65,000
31,000
96,000
Manufacturing
overhead costs
164,064
Total costs
$
273,564
Required:
Compute the individual
product costs per unit assuming that Tiger Furnishings uses
machine-hours to allocate...
Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator....
Tiger Furnishings
produces two models of cabinets for home theater components, the
Basic and the Dominator. Data on operations and costs for March
follow:
Basic
Dominator
Total
Units produced
1,300
380
1,680
Machine-hours
3,300
2,700
6,000
Direct
labor-hours
3,400
3,700
7,100
Direct materials
costs
$
19,000
$
4,150
$
23,150
Direct labor
costs
62,500
52,500
115,000
Manufacturing
overhead costs
201,200
Total costs
$
339,350
Tiger Furnishings’s CFO believes that a two-stage cost allocation
system would give managers better cost information....
Gentry Cabinetry produces two models of home shelving, the Basic and the Mega. Data on operations...
Gentry Cabinetry produces two models of home shelving, the Basic
and the Mega. Data on operations and costs for November are:
(10 points)
Basic
Mega
Total
Machine hours
8,000
4,000
12,000
Direct labor hours
6,000
4,000
10,000
Units produced
1,000
250
1,250
Direct material costs
$20,000
$7,500
$27,500
Direct labor costs
129,000
71,000
200,000
Manufacturing overhead costs
348,200
Total costs
$575,700
Required:
Compute the unit cost for each model (Basic &
Mega), assuming Gentry Cabinetry uses:
A.) Direct labor hours...
Koontz Company manufactures two models of industrial components—a Basic model and an Advanced Model. The company...
Koontz Company manufactures two models of industrial
components—a Basic model and an Advanced Model. The company
considers all of its manufacturing overhead costs to be fixed and
it uses plantwide manufacturing overhead cost allocation based on
direct labor-hours. Koontz’s controller prepared the segmented
income statement that is shown below for the most recent year (he
allocated selling and administrative expenses to products based on
sales dollars):
Basic
Advanced
Total
Number of units produced and sold
20,000
10,000
30,000
Sales
$...
Koontz Company manufactures two models of industrial components—a Basic model and an Advanced Model. The company...
Koontz Company manufactures two models of industrial
components—a Basic model and an Advanced Model. The company
considers all of its manufacturing overhead costs to be fixed and
it uses plantwide manufacturing overhead cost allocation based on
direct labor-hours. Koontz’s controller prepared the segmented
income statement that is shown below for the most recent year (he
allocated selling and administrative expenses to products based on
sales dollars):
Basic
Advanced
Total
Number of units produced and sold
20,000
10,000
30,000
Sales
$...
Koontz Company manufactures two models of industrial components—a Basic model and an Advanced Model. The company...
Koontz Company manufactures two models of industrial
components—a Basic model and an Advanced Model. The company
considers all of its manufacturing overhead costs to be fixed and
it uses plantwide manufacturing overhead cost allocation based on
direct labor-hours. Koontz’s controller prepared the segmented
income statement that is shown below for the most recent year (he
allocated selling and administrative expenses to products based on
sales dollars):
Basic
Advanced
Total
Number of units produced and sold
20,000
10,000
30,000
Sales
$...
Koontz Company manufactures two models of industrial components—a Basic model and an Advanced Model. The company...
Koontz Company manufactures two models of industrial
components—a Basic model and an Advanced Model. The company
considers all of its manufacturing overhead costs to be fixed and
it uses plantwide manufacturing overhead cost allocation based on
direct labor-hours. Koontz’s controller prepared the segmented
income statement that is shown below for the most recent year (he
allocated selling and administrative expenses to products based on
sales dollars):
Basic
Advanced
Total
Number of units produced and sold
20,000
10,000
30,000
Sales
$...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Assume that attributes with the same name in different relations represent the same domain and that...
- JAVA: Use existing Java Stack class to solve the "Balancing Symbols" problem. The symbols are (),...
- K-NN and Perceptron theory question If we don’t care about the size of the TRAINING SET...
- Make a C program that simulates time-sharing in the operating system. Please follow the instructions provided:...
- What are some current challenges faced by food companies in reducing food waste?
- Arthur buys $2,200.00 worth of stock. Six months later, the value of the stock has risen...
- The Following table is based on a time study for a metal working operation Obs (minutes...
ADVERTISEMENT