Hill Manufacturing uses departmental cost driver rates to apply manufacturing overhead costs to products. Manufacturing overhead...
Hill Manufacturing uses departmental cost driver rates to apply manufacturing overhead costs to products. Manufacturing overhead costs are applied on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 20X5, the following estimates were provided for the coming year: Machining Assembly Direct labor-hours 10,000 dlh 90,000 dlh Machine-hours 100,000 mh 5,000 mh Direct labor cost $ 80,000 $720,000 Manufacturing overhead costs $250,000 $360,000 The accounting records of the company show the following data for Job #846: Machining Assembly Direct labor-hours 50 dlh 120 dlh Machine-hours 170 mh 10 mh Direct material cost $2,700 $1,600 Direct labor cost $ 400 $ 900 Required: a. Compute the manufacturing overhead allocation rate for each department. b. Compute the total cost of Job #846. c. Provide possible reasons why Hill Manufacturing uses two different cost allocation rates.
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Hill Manufacturing uses departmental cost driver rates to apply
manufacturing overhead costs to products. Manufacturing overhead...
Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead...
Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 20X3, the following estimates were provided for the coming year: Machining Assembly Direct labor-hours 30,000 60,000 Machine-hours 80,000 20,000 Direct labor cost $500,000 $900,000 Manufacturing overhead costs $420,000 $240,000 The accounting records of the company show...
Perreth Products manufactures its products in two separate departments: Machining and Assembly. Total manufacturing overhead costs...
Perreth Products manufactures its products in two separate departments: Machining and Assembly. Total manufacturing overhead costs for the year are budgeted at $1,050,000. Of this amount, the Machining Department incurs $630,000 (primarily for machine operation and depreciation) while the Assembly Department incurs $420,000. The company estimates that it will incur 8,400 machine hours (all in the Machining Department) and 15,000 direct labor hours (3,000 in the Machining Department and 12,000 in the Assembly Department) during the year. Perreth Products currently...
Teagan Company uses Departmental Overhead allocation to allocate its manufacturing overhead costs. It has identified two...
Teagan Company uses Departmental Overhead allocation to allocate its manufacturing overhead costs. It has identified two departments: Machining & Assembly. The Machining department allocates overhead using machine hours, and the Assembly department allocates overhead using direct labor hours. It has accumulated the following data for 2018 Machining Department estimated manufacturing overhead $670,000 Assembly Department esimated manufacturing overhead: $450.000 Total estimated overhead costs $1,120,000 Estimated machine hours in the machining department Estimated direct labor hours in the assembly department 10,000 hours...
Southwick Products manufactures its products in two separate departments: Machining and Assembly. Total manufacturing overhead costs...
Southwick Products manufactures its products in two separate
departments: Machining and Assembly. Total manufacturing overhead
costs for the year are budgeted at $1,100,000. Of this amount, the
Machining Department incurs $680,000 (primarily for machine
operation and depreciation) while the Assembly Department incurs
$420,000. The company estimates that it will incur 10,000 machine
hours (all in the Machining Department) and 22,000 direct labor
hours 8,000 in the Machining Department and 14,000 in the Assembly
Department) during the year.
Southwick Products currently...
QUESTION 1 ABC Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The...
QUESTION 1 ABC Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two department: Assembly, and Sanding. The Assembly department uses a departmental overhead rate of $35 per machine hour. The Sanding department uses a departmental overhead rate of $20 per direct labor hour. Job 603 used the following Direct Labor Hours, and Machine Hours in the two departments: Actual Results Assembly Department Sanding Department Direct Labor Hours Used 8 5 Machine Hours Used...
Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has...
Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $60 per machine hour, while the Sanding Department uses a departmental overhead rate of $30 per direct labor hour. Job 542 used the following direct labor hours and machine hours in the two departments Assembly Department 9 Sanding Department Actual results Direct labor hours used Machine hours used The cost...
Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has...
Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $35 per machine hour, while the Sanding Department uses a departmental overhead rate of $25 per direct labor hour, Job 003 used the following direct labor hours and machine hours in the two departments Assembly Sanding Actual results Department Department Direct labor hours used Machine hours used The cost for...
QS 17-5 Computing departmental overhead rates LO P2 Rafner Manufacturing identified the following budgeted data in...
QS 17-5 Computing departmental overhead rates LO P2 Rafner Manufacturing identified the following budgeted data in its two production departments. Assembly $1,218,700 12,200 DLH 6,200 MH Manufacturing overhead costs Direct labor hours Machine hours Finishing $620,000 20,200 DLH 16,200 MH points (8 03:15:46 Required: What are the company's departmental overhead rates if the assembly department assigns overhead based on direct labor hours and the finishing department assigns overhead based on machine hours? Hint The departmental overhead rate for Assembly G...
Exercise 17-6 Assigning overhead costs using the plantwide rate and departmental rate methods LO P1, P2...
Exercise 17-6 Assigning overhead costs using the plantwide rate and departmental rate methods LO P1, P2 Laval produces lamps and home lighting fixtures. Its most popular product is a brushed aluminum desk lamp. This lamp is made from components shaped in the fabricating department and assembled in the assembly department. Information related to the 25,000 desk lamps produced annually follows. $265,000 Direct materials Direct labor Fabricating department (9,000 DLH * $28 per DLH) Assembly department (15,400 DLH * $23 per...
Exercise 17-6 Assigning overhead costs using the plantwide rate and departmental rate methods LO P1, P2...
Exercise 17-6 Assigning overhead costs using the plantwide rate and departmental rate methods LO P1, P2 Laval produces lamps and home lighting fixtures. Its most popular product is a brushed aluminum desk lamp. This lamp is made from components shaped in the fabricating department and assembled in the assembly department. Information related to the 27,000 desk lamps produced annually follows. $275,000 Direct materials Direct labor Fabricating department (6,500 DLH * $28 per DLH) Assembly department (16,480 DLH * $22 per...
Perreth Products manufactures its products in two separate departments: Machining and Assembly. Total manufacturing overhead costs for the year are budgeted at $1,050,000. Of this amount, the Machining Department incurs $630,000 (primarily for machine operation and depreciation) while the Assembly Department incurs $420,000. The company estimates that it will incur 8,400 machine hours (all in the Machining Department) and 15,000 direct labor hours (3,000 in the Machining Department and 12,000 in the Assembly Department) during the year. Perreth Products currently...
Teagan Company uses Departmental Overhead allocation to allocate its manufacturing overhead costs. It has identified two departments: Machining & Assembly. The Machining department allocates overhead using machine hours, and the Assembly department allocates overhead using direct labor hours. It has accumulated the following data for 2018 Machining Department estimated manufacturing overhead $670,000 Assembly Department esimated manufacturing overhead: $450.000 Total estimated overhead costs $1,120,000 Estimated machine hours in the machining department Estimated direct labor hours in the assembly department 10,000 hours...
Southwick Products manufactures its products in two separate
departments: Machining and Assembly. Total manufacturing overhead
costs for the year are budgeted at $1,100,000. Of this amount, the
Machining Department incurs $680,000 (primarily for machine
operation and depreciation) while the Assembly Department incurs
$420,000. The company estimates that it will incur 10,000 machine
hours (all in the Machining Department) and 22,000 direct labor
hours 8,000 in the Machining Department and 14,000 in the Assembly
Department) during the year.
Southwick Products currently...
Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $60 per machine hour, while the Sanding Department uses a departmental overhead rate of $30 per direct labor hour. Job 542 used the following direct labor hours and machine hours in the two departments Assembly Department 9 Sanding Department Actual results Direct labor hours used Machine hours used The cost...
Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $35 per machine hour, while the Sanding Department uses a departmental overhead rate of $25 per direct labor hour, Job 003 used the following direct labor hours and machine hours in the two departments Assembly Sanding Actual results Department Department Direct labor hours used Machine hours used The cost for...
QS 17-5 Computing departmental overhead rates LO P2 Rafner Manufacturing identified the following budgeted data in its two production departments. Assembly $1,218,700 12,200 DLH 6,200 MH Manufacturing overhead costs Direct labor hours Machine hours Finishing $620,000 20,200 DLH 16,200 MH points (8 03:15:46 Required: What are the company's departmental overhead rates if the assembly department assigns overhead based on direct labor hours and the finishing department assigns overhead based on machine hours? Hint The departmental overhead rate for Assembly G...
Exercise 17-6 Assigning overhead costs using the plantwide rate and departmental rate methods LO P1, P2 Laval produces lamps and home lighting fixtures. Its most popular product is a brushed aluminum desk lamp. This lamp is made from components shaped in the fabricating department and assembled in the assembly department. Information related to the 25,000 desk lamps produced annually follows. $265,000 Direct materials Direct labor Fabricating department (9,000 DLH * $28 per DLH) Assembly department (15,400 DLH * $23 per...
Exercise 17-6 Assigning overhead costs using the plantwide rate and departmental rate methods LO P1, P2 Laval produces lamps and home lighting fixtures. Its most popular product is a brushed aluminum desk lamp. This lamp is made from components shaped in the fabricating department and assembled in the assembly department. Information related to the 27,000 desk lamps produced annually follows. $275,000 Direct materials Direct labor Fabricating department (6,500 DLH * $28 per DLH) Assembly department (16,480 DLH * $22 per...
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