3.

Musich Corporation has an activity-based costing system with three activity cost pools--Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, have been allocated to the cost pools already and are provided in the table below.

                                                               Activity Cost Pools

Costs in the Machining cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. Data concerning the two products and the company's costs appear below:

                                                                                           Product Z3      Product T1

Required:

Calculate the following:

Flexible Overhead Budget

Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 15,000 hours of productive capacity in the department:

Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 13,000, 15,000, and 17,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers.

Flexible Overhead Budget

Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 20,000 hours of productive capacity in the department:

Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 18,000, 20,000, and 22,000 hours of production. Enter all amounts as positive numbers. Round your interim computations to the nearest cent, if required.

Flexible Overhead Budget

Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 9,000 hours of productive capacity in the department:

Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 7,000, 9,000, and 11,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers.

Flexible Overhead Budget

Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 11,000 hours of productive capacity in the department:

Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 9,000, 11,000, and 13,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers.

Flexible Overhead Budget

Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 20,000 hours of productive capacity in the department:

Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 18,000, 20,000, and 22,000 hours of production. Enter all amounts as positive numbers. Round your interim computations to the nearest cent, if required.

Musich Corporation has an activity-based costing system with three activity cost pools--Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, have been allocated to the cost pools already and are provided in the table below.

                                                               Activity Cost Pools

Costs in the Machining cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. Data concerning the two products and the company's costs appear below:

                                                                                                                                    Product Z3      Product T1

Required:

Calculate the following:

Musich Corporation has an activity-based costing system with three activity cost pools--Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, have been allocated to the cost pools already and are provided in the table below.

Activity Cost Pools

Machining

Setting Up

Other

Total

Equipment depreciation

$

9400

$

48,700

$

23,800

$

81,900

Indirect labor

4500

2900

4100

11,500

Total

$

13,900

$

51,600

$

27,900

$

93,400

Costs in the Machining cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. Data concerning the two products and the company's costs appear below:

MHs

Batches

Product Z3

6000

750

Product T1

6200

1350

Total

12,200

2100

Product Z3 Product T1

Sales (total)

$

230,800

$

255,500

Direct materials (total)

$

84,000

$

97,600

Direct labor (total)

$

110,000

$

105,200

Required:

Calculate the following:

Machining Activity Rate

$
Setting up Activity Rate

$

Amount of OH applied to product Z3 (round to the nearest dollar)

$
Amount of OH applied to product T1 (round to the nearest dollar)

$

Product Margin – Z3 (round to the nearest dollar)

$
Product Margin – T1 (round to the nearest dollar)

$

Clive Palmer treated Queensland Nickel as $200m

Piggy BankClive Palmer is accused of being a reckless, shadow company director who took$200 million out of a Queensland nickel company to fund his political party andinvestments, including a new Titanic.

Administrators of Queensland Nickel, which closed last month, said yesterday thecompany was used as a “piggy bank” to finance what they termed the “Palmerempire”.

More than $200 million was taken out of the company over a five-year period andpumped into companies that were directly related to Mr Palmer, including hisflagship business Mineralogy, FTI Consulting said in its report.

But John Park, from FTI, said his investigations found $189 million in loans tocompanies linked to Mr Palmer were “forgiven” or not paid back to QueenslandNickel, including $5.9 million that went into the plans for the Titanic II.

Of the money that went into the Titanic, most was spent on lavish launch partieswith the only assets now some intellectual property and a “plastic boat”.

The company also became the single biggest political donor in the country,delivering $21.5 million to the Palmer United Party.

The administrators said Queensland Nickel accounted for 27 per cent of thenation’s total political donations in 2014 and last year, including the WA Senateby-election when Palmer United’s Dio Wang was elected.

While money was flowing out of the nickel company into the Palmer CoolumResort and other firms, the world nickel price was falling.

Mr Park said the borrowing from the company could have continued if nickelprices remained high.

“At a very high level, we saw Queensland Nickel as what I’d say (was) the piggybank, the treasury,” Mr Park said.

“And the money was coming through Queensland Nickel in the better times and itwas being dissipated amongst the Palmer empire entities.”

Up to 800 workers are owed $74 million in entitlements.

They are likely to get most of those entitlements paid out under a FederalGovernment program. Remaining creditors will likely get between nothing and 50¢for every dollar owed.

The administrators believe Mr Palmer and his nephew Clive Mensink, QueenslandNickel’s sole director, should be examined by the Australian Securities andInvestments Commission.

They claimed Mr Palmer acted as “shadow director” and that he and Mr Mensinkhad been “reckless in exercising their duties and powers as directors” for takingactions not in the interests of Queensland Nickel.

Mr Palmer is planning to fight any action and argued he was being singled outwhen Prime Minister Malcolm Turnbull was standing by as jobs disappeared in Queensland.

“Despite me controlling a lot of things, being Dr Evil, if you like, I don’t controlthe world’s international nickel price,” he told Melbourne radio.

Mr Palmer said there was a witch-hunt against him for making decisions that hewas entitled to make.

“I mean, that's my money. That's what we live in - a free society, and people havethe right to spend their money as they see fit,” he told the Seven Network.

Mr Palmer is the sole shareholder of Queensland Nickel. His nephew Mr Mensink isthe sole company director. The Administrators believe that Mr Palmer should beexamined by ASIC for breach of s184 of the Corporations Act.

Do you think ASIC would be successful in charging Mr. Palmer for breach of s184of the Corporations Act?