Homework Answers
a) Allocation on labor hour
Rate per hour = 550000/25000 = 22
| Product | Allocation rate | * | Weight of Base | = | Allocated cost |
| Vogue | 22 | * | 6000 | 132000 | |
| Beauty | 22 | 8000 | 176000 | ||
| Glamour | 22 | 11000 | 242000 | ||
| Total | 25000 | 550000 | |||
b) Allocation on Machine hour
Rate per hour = 550000/5500 = 100 per hour
| Product | Allocation rate | * | Weight of Base | = | Allocated cost |
| Vogue | 100 | * | 1100 | 110000 | |
| Beauty | 100 | 1400 | 140000 | ||
| Glamour | 100 | 3000 | 300000 | ||
| Total | 5500 | 550000 | |||
Add Answer to:
Exercise 4-5A Allocating overhead cost among products LO 4-3 Tyson Hats Corporation manufactures three different models...
Tyson Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Tyson expects to...
Tyson Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Tyson expects to incur $550,000 of overhead cost during the next fiscal year. Other budget information follows: Vogue Beauty Glamour Total Direct labor hours 6,000 8,000 11,000 25,000 Machine hours 1,100 1,400 3,000 5,500 Required a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. b. Use machine hours as the cost driver to compute...
Walton Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Walton expects to...
Walton Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Walton expects to incur $625,000 of overhead cost during the next fiscal year. Other budget information follows. Direct labor hours Machine hours Vogue 5,400 1,500 Beauty 7,400 1,400 Glamour 12,200 2,100 Total 25,000 5,000 Required a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. b. Use machine hours as the cost driver to compute...
Stuart Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Stuart expects to...
Stuart Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Stuart expects to incur $645,000 of overhead cost during the next fiscal year. Other budget information follows. Vogue Beauty Glamour Total Direct labor hours 4,800 6,800 3,400 15,000 Machine hours 1,200 1,400 1,700 4,300 2728 Required a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. b. Use machine hours as the cost driver to...
Gibson Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour, Gibson expects to...
Gibson Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour, Gibson expects to incur $666,000 of overhead cost during the next fiscal year. Other budget information follows. Direct labor hours Machine hours Vogue Beauty Glamour Total 3,400 5,400 9,200 18,000 1,200 2,050 2,300 5,550 Required a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product b. Use machine hours as the cost driver to compute...
12 G Saved Walton Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour....
12 G Saved Walton Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Walton expects to incur $625,000 of overhead cost during the next fiscal year. Other budget information follows: Direct labor hours Machine hours Vogue 5,400 1,500 Beauty Glamour Total 7,400 12,200 25,000 1,400 2,100 5,000 oints Required 8 01:50:38 a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. b. Use machine hours...
Rundle Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Rundle expects to...
Rundle Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Rundle expects to incur $644,000 of overhead cost during the next fiscal year. Other budget information follows. Vogue Beauty Glamour Total Direct labor hours 4,200 6,200 3,600 14,000 Machine hours 2,000 2,200 2,240 6,440 Required Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. Use machine hours as the cost driver to compute the allocation...
Perez Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Perez expects to...
Perez Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Perez expects to incur $630,000 of overhead cost during the next fiscal year. Other budget information follows: Vogue Beauty Glamour Total Direct labor hours 4,000 6,000 4,000 14,000 Machine hours 1,500 1,400 1,600 4,500 Required Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. Use machine hours as the cost driver to compute the allocation...
Exercise 12-8 Allocating costs among products LO 12-3 Jordan Construction Company expects to build three new...
Exercise 12-8 Allocating costs among products LO 12-3 Jordan Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows: Expected Costs Direct labor Direct materials Home 1 $79,000 93.000 Home 2 $ 93,000 134,000 Home 3 $182,000 191,000 Assume Jordan needs to allocate two major overhead costs ($53,100 of employee fringe benefits and $20,900 of indirect materials costs) among the three jobs. Required Choose an appropriate cost...
Jefferson Company expects to incur $460,000 in manufacturing overhead costs during 2014. Other budget information is...
Jefferson Company expects to incur $460,000 in manufacturing overhead costs during 2014. Other budget information is below Dept A Dept B Dept C Direct Labor hours 15,000 5,000 20,000 Machine Hours 8,000 10,000 12,000 1. Use direct labor hours as a cost drive to compute the allocation rate: Determine the amount budgeted overhead cost for each department 2. Use Machine hours as a cost driver to compute the allocation . Determine the amount budgeted overhead cost for each department 3....
Isadore's Implements, Inc., manufactures pens and mechanical pencils often used for gifts. Overhead costs are currently...
Isadore's Implements, Inc., manufactures pens and mechanical pencils often used for gifts. Overhead costs are currently allocated using direct labor-hours, but the controller has recommended an activity-based costing system using the following data: Cost Driver Volume Activity Cost Driver Cost Pencils Pens Setting up Number of setups $ 91,200 17 31 Inspecting Number of parts 27,000 4 5 Packing and shipping Number of boxes shipped 65,000 50,000 80,000 Total overhead $183,200 Required: a. Compute the amount of overhead to be...
Tyson Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Tyson expects to incur $550,000 of overhead cost during the next fiscal year. Other budget information follows: Vogue Beauty Glamour Total Direct labor hours 6,000 8,000 11,000 25,000 Machine hours 1,100 1,400 3,000 5,500 Required a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. b. Use machine hours as the cost driver to compute...
Walton Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Walton expects to incur $625,000 of overhead cost during the next fiscal year. Other budget information follows. Direct labor hours Machine hours Vogue 5,400 1,500 Beauty 7,400 1,400 Glamour 12,200 2,100 Total 25,000 5,000 Required a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. b. Use machine hours as the cost driver to compute...
Stuart Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Stuart expects to incur $645,000 of overhead cost during the next fiscal year. Other budget information follows. Vogue Beauty Glamour Total Direct labor hours 4,800 6,800 3,400 15,000 Machine hours 1,200 1,400 1,700 4,300 2728 Required a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. b. Use machine hours as the cost driver to...
Gibson Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour, Gibson expects to incur $666,000 of overhead cost during the next fiscal year. Other budget information follows. Direct labor hours Machine hours Vogue Beauty Glamour Total 3,400 5,400 9,200 18,000 1,200 2,050 2,300 5,550 Required a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product b. Use machine hours as the cost driver to compute...
12 G Saved Walton Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Walton expects to incur $625,000 of overhead cost during the next fiscal year. Other budget information follows: Direct labor hours Machine hours Vogue 5,400 1,500 Beauty Glamour Total 7,400 12,200 25,000 1,400 2,100 5,000 oints Required 8 01:50:38 a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. b. Use machine hours...
Exercise 12-8 Allocating costs among products LO 12-3 Jordan Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows: Expected Costs Direct labor Direct materials Home 1 $79,000 93.000 Home 2 $ 93,000 134,000 Home 3 $182,000 191,000 Assume Jordan needs to allocate two major overhead costs ($53,100 of employee fringe benefits and $20,900 of indirect materials costs) among the three jobs. Required Choose an appropriate cost...
Isadore's Implements, Inc., manufactures pens and mechanical pencils often used for gifts. Overhead costs are currently allocated using direct labor-hours, but the controller has recommended an activity-based costing system using the following data: Cost Driver Volume Activity Cost Driver Cost Pencils Pens Setting up Number of setups $ 91,200 17 31 Inspecting Number of parts 27,000 4 5 Packing and shipping Number of boxes shipped 65,000 50,000 80,000 Total overhead $183,200 Required: a. Compute the amount of overhead to be...
Most questions answered within 3 hours.
-
An entomologist discovers a dung beetle rolling a ball of dung
along the ground, and decides...
asked 1 hour ago -
Humans have used horses for transportation for millions of
years. Therefore, they will use horses for...
asked 3 hours ago -
The following are the Jensen Corporation's unit costs of making
and selling an item at a...
asked 3 hours ago -
Does direct Medicare reimbursement of Advanced practice nurses
increase access to their services?
asked 4 hours ago -
List and explain why a company would choose to use a
published
compensation survey vs. creating...
asked 4 hours ago -
A discrete random variable X can take values from 1 to 10. Find
the variance of...
asked 4 hours ago -
The primary financial goal of a corporation is to maximize:
shareholders wealth.
earnings per share.
stock...
asked 4 hours ago -
determine whether the vectors u=(1,2,3,), v=(-2,1,0) and
w=(1,0,1) are linearly dependent or independent.
asked 5 hours ago -
python
Define a function called print_values which takes a dictionary
object as a parameter. The function...
asked 6 hours ago -
In Chapter 1 you created a program named Triangle in
which you displayed a seven-line triangle...
asked 5 hours ago -
Research question: What are the differences between separately
stated and non separately stated transactions in an...
asked 6 hours ago -
By using Arduino write a code that connects two LEDs to two
push-buttons. Each button controls...
asked 7 hours ago