Questions
The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost...

The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers.

Activity Cost Pool Budgeted Overhead Cost Cost Driver Budgeted
Level for Cost
Driver
Pool Rate
Machine setups $ 440,000 Number of setups 110 $ 4,000 per setup
Material handling 105,000 Weight of raw material 35,000 lb. $ 3 per pound
Hazardous waste control 60,000 Weight of hazardous chemicals used 6,000 lb. $ 10 per pound
Quality control 225,000 Number of inspections 3,000 $ 75 per inspection
Other overhead costs 500,000 Machine hours 25,000 $ 20 per machine hour
Total $ 1,330,000


An order for 5,000 boxes of medical-testing agent has the following production requirements.

Machine setups 7 setups
Raw material 10,000 pounds
Hazardous materials 4,000 pounds
Inspections 10 inspections
Machine hours 500 machine hours


Required:
1. Compute the total overhead that should be assigned to the medical-testing agent order.
2. What is the overhead cost per box of testing agent?
3. Suppose Tulsa Medical Supply Company were to use a single predetermined overhead rate based on machine hours. Compute the rate per hour.
4. Under the approach in requirement 3, how much overhead would be assigned to the medical-testing agent order?
a. In total.
b. Per box of testing agent.


Complete this question by entering your answers in the tabs below.

  • Req 1 and 2
  • Req 3
  • Req 4

Compute the total overhead that should be assigned to the medical-testing agent order. What is the overhead cost per box of testing agent? (Round "Overhead cost" to 2 decimal places.)

Total overhead
Overhead cost    per box

Suppose Tulsa Medical Supply Company were to use a single predetermined overhead rate based on machine hours. Compute the rate per hour. (Round your answer to 2 decimal places.)

Overhead rate per machine hr.

Under the approach in requirement 3, how much overhead would be assigned to the medical-testing agent order?

a. In total.

b. Per box of testing agent. (Round your answer to 2 decimal places.)

a. Total overhead
b. Overhead cost    per box

In: Accounting

Cost of Goods Sold, Cost of Goods Manufactured Glenville Company has the following information for April:...

Cost of Goods Sold, Cost of Goods Manufactured

Glenville Company has the following information for April:

Cost of direct materials used in production $54,000
Direct labor 66,000
Factory overhead 20,000
Work in process inventory, April 1 45,000
Work in process inventory, April 30 50,000
Finished goods inventory, April 1 25,000
Finished goods inventory, April 30 17,000

a. For April, determine the cost of goods manufactured.

Using the data given, prepare a statement of Cost of Goods Manufactured.

Glenville Company
Statement of Cost of Goods Manufactured
Work in process inventory, April 1 $
Cost of direct materials used in production $
Direct labor
Factory overhead
Total manufacturing costs incurred in April
Total manufacturing costs $
Work in process inventory, April 30
Cost of goods manufactured $

b. For April, determine the cost of goods sold.

Using the data given, prepare a statement of Cost of Goods Sold.

Glenville Company
Statement of Cost of Goods Sold
Finished goods inventory, April 1 $
Cost of goods manufactured
Cost of finished goods available for sale $
Finished goods inventory, April 30
Cost of goods sold $

In: Accounting

depreciation charged in company profit and loss account is usually based on: historical cost revelant cost...

depreciation charged in company profit and loss account is usually based on:
historical cost
revelant cost
opportunity cost
committed cost

In: Accounting

3a)Which group of the following manufacturing cost elements occurs in a process cost system? a. Direct...

3a)Which group of the following manufacturing cost elements occurs in a process cost system?

a.

Direct labour and direct material.

b.

Direct labour and conversion costs.

c.

Direct materials, direct labour, and manufacturing overhead.

d.

Manufacturing overhead and conversion costs.

3b)

For which one of the following would a process cost system most likely be used?

a.

cruise ships

b.

motion pictures

c.

potato chips

d.

custom furniture

3c)

The primary benefit of ABC is it provides

a.

more accurate product costing.

b.

more cost pools.

c.

faster management decisions.

d.

enhanced control over overhead costs.

3d)

The primary benefit of ABC is it provides

a.

more accurate product costing.

b.

more cost pools.

c.

faster management decisions.

d.

enhanced control over overhead costs.

In: Accounting

Following information is available for the company. Date Explanation Units Unit cost Total Cost 1st of...

Following information is available for the company.

Date

Explanation

Units

Unit cost

Total Cost

1st of March 2012

Beginning inventory

15,00

SR 7

SR 10500

5th March

Purchases

3,000

SR 8

24,000

13th March

Purchases

5,500

SR 9

49,500

21st march

Purchases

4,000

SR10

40,000

March 26

Purchases

2,000

SR 11

22,000

Total

16,000

135,500

Requirement: Total units the company sold are 1200. Find the Costs of goods sold for the company through FIFO, LIFO and Average method.

In: Accounting

Five page scholars paper on cutting healthcare cost and cost effectiveness of generic drug use. With...

Five page scholars paper on cutting healthcare cost and cost effectiveness of generic drug use. With five references and five scholarly peer-reviewed articles accompanied by a brief summary of each article.

In: Nursing

Five page scholars paper on the healthcare cost cutting and cost effectiveness of providing care based...

Five page scholars paper on the healthcare cost cutting and cost effectiveness of providing care based on generic drug use. With five references and five scholarly peer-reviewed articles accompanied by a brief summary of each article.

In: Nursing

module 6 discussed the relationship between marginal cost and average cost. Specifically it stated that when...

module 6 discussed the relationship between marginal cost and average cost. Specifically it stated that when marginal cost is above average cost, average cost rises. Describe why this is the case? What happens when marginal cost is below average cost?

In: Economics

4. The chief cost accountant for Kenner Beverage Co. estimated that total factory overhead cost for...

4. The chief cost accountant for Kenner Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning May 1 would be $130,000 and total direct labor costs would be $100,000. During May, the actual direct labor cost totaled $12,000 and factory overhead cost incurred totaled $15,950.

Required:

A. What is the predetermined factory overhead rate based on direct labor cost?
B. On May 31, journalize the entry to apply factory overhead to production. Refer to the Chart of Accounts for exact wording of account titles.
C. What is the May 31 balance of the account Factory Overhead-Blending Department?
D. Does the balance in part C represent over- or underapplied factory overhead?
CHART OF ACCOUNTS
Kenner Beverage Co.
General Ledger
ASSETS
110 Cash
121 Accounts Receivable
125 Notes Receivable
126 Interest Receivable
131 Materials
141 Work in Process-Blending Department
142 Work in Process-Filling Department
151 Factory Overhead-Blending Department
152 Factory Overhead-Filling Department
161 Finished Goods
171 Supplies
172 Prepaid Insurance
173 Prepaid Expenses
181 Land
191 Factory
192 Accumulated Depreciation-Factory
LIABILITIES
210 Accounts Payable
221 Utilities Payable
231 Notes Payable
236 Interest Payable
251 Wages Payable
EQUITY
311 Common Stock
340 Retained Earnings
351 Dividends

In: Accounting

"Of the three basic steps in the cost approach to valuation—estimate replacement cost, estimate accrued depreciation,...

"Of the three basic steps in the cost approach to valuation—estimate replacement cost, estimate accrued depreciation, and estimate site value—which is generally the most difficult and why?"

In: Finance