. Cookie Company produces parts for the auto industry. Part 2 is machined in Department #1, which
has the following budgeted conversion costs. Use 2,400 production hours and .03 hours per unit to
manufacture.
Labor
$220,000
Depreciation
30,000
Maintenance
10,000
Supplies
25,600
Total
$285,600
(a) Compute Department #1’s budgeted cell conversion cost rate for the current year.
(b) Compute Part 2’s budgeted cell conversion cost per unit.
a) Budgeted cell conversion Cost rate = 285600/2400 = 119 per hour
b) Budgeted cell conversion Cost per unit = 285600/80000 = 3.57 per unit
. Cookie Company produces parts for the auto industry. Part 2 is machined in Department #1,...
Calculate Lead Time Flint Fabricators Inc. machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts are machined through two processes: milling and finishing Parts are produced in batch sizes of 65 parts. A part requires 5 minutes in milling and 8 minutes in finishing. The move time between the two operations for a complete batch is 9 minutes Under the lean philosophy, the part is produced in a cell that includes both the milling and...
Cost Assignment and IT Bunker Company produces two types of glucose monitors (basic and advanced). Both pass through two producing departments: Fabrication and Assembly. Bunker also has an Inspection Department that is responsible for testing monitors to ensure that they perform within prespecified tolerance ranges (a sampling procedure is used). Budgeted data for the three departments are as follows: Inspection Fabrication Assembly Overhead $560,000 $840,000 $238,000 Number of tests 35,000 105,000 Direct labor hours 84,000 42,000 In the Fabrication Department,...
The Blues Brothers Company uses normal costing. The company has one service department (machine maintenance), and two production departments (P1 and P2). The service department allocates costs to the production department based on machine hours. The company allocates service costs using what the book calls the dual rate method. In other words, the company DOES make a distinction between fixed and variable costs when charging service costs to the user departments. Both of the production departments use direct labor hours...
Product-Costing Accuracy, Plantwide and Departmental Rates, ABC Escuha Company produces two type of calculators: scientific and business. Both products pass through two producing departments. The business calculator is by far the most popular. The following data have been gathered for these two products: Product-Related Data Scientific Business Units produced per year 76,000 760,000 Prime costs $253,000 $2,530,000 Direct labor hours 103,400 1,034,000 Machine hours 51,200 512,000 Production runs 100 150 Inspection hours 2,000 3,000 Maintenance hours 2,250 9,000 Department Data...
Product-Costing Accuracy, Plantwide and Departmental Rates, ABC Escuha Company produces two type of calculators: scientific and business. Both products pass through two producing departments. The business calculator is by far the most popular. The following data have been gathered for these two products: Product-Related Data Scientific Business Units produced per year 78,000 780,000 Prime costs $247,000 $2,470,000 Direct labor hours 96,500 965,000 Machine hours 53,000 530,000 Production runs 100 150 Inspection hours 2,000 3,000 Maintenance hours 2,250 9,000 Department Data...
Product-Costing Accuracy, Plantwide and Departmental Rates, ABC Escuha Company produces two type of calculators: scientific and business. Both products pass through two producing departments. The business calculator is by far the most popular. The following data have been gathered for these two products: Product-Related Data Scientific Business Units produced per year 76,000 760,000 Prime costs $253,000 $2,530,000 Direct labor hours 103,400 1,034,000 Machine hours 51,200 512,000 Production runs 100 150 Inspection hours 2,000 3,000 Maintenance hours 2,250 9,000 Department Data...
Raleigh Textiles Company manufactures a variety of natural fabrics for the clothing industry. The following data pertain to the Weaving Department for the month of November. Equivalent units of direct material (weighted-average method) 70,000 Equivalent units of conversion (weighted-average method) 60,000 Units completed and transferred out during November 57,000 The cost data for November are as follows: Work in process, November 1 Direct material $ 112,740 Conversion 54,108 Costs incurred during November Direct material $ 181,260 Conversion 293,892 There were...
Product-Costing Accuracy, Plantwide and Departmental Rates, ABC 3,000 Escuha Company produces two type of calculators: scientific and business. Both products pass through two producing departments. The business calculator is by far the most popular. The following data have been gathered for these two products: Product-Related Data Scientific Business Units produced per year 75,000 750,000 Prime costs $249,000 $2,490,000 Direct labor hours 99,700 997,000 Machine hours 50,500 505,000 Production runs 100 150 Inspection hours 2,000 Maintenance hours 2,250 9,000 Department Data...
Product-Costing Accuracy, Plantwide and Departmental Rates,
ABC
Escuha Company produces two type of calculators: scientific and
business. Both products pass through two producing departments. The
business calculator is by far the most popular. SOLVE PLEASE
Product-Costing Accuracy, Plantwide and Departmental Rates, ABC Escuha Company produces two type of calculators: scientific and business. Both products pass through two producing departments. The business calculator is by far the most popular. The following data have been gathered for these two products: Units produced...
The Goodparts Company produces a component
that is subsequently used in the aerospace industry. The component
consists of three parts (A, B, and C) that are purchased from
outside and cost 40, 35, and 15 cents per piece, respectively.
Parts A and B are assembled first on assembly line 1, which
produces 155 components per hour. Part C undergoes a drilling
operation before being finally assembled with the output from
assembly line 1. There are in total six drilling machines,...