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.
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.)
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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.)
|
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.)
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In: Accounting
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
In: Accounting
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 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 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 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 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 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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In: Accounting
"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