Using high low method, variable manufacturing overhead cost per unit = (Highest cost – Lowest cost)/(Difference in Units)
= (300,000-180,000)/(80,000-20,000)
= $2 per unit
Fixed manufacturing overhead per quarter = Total cost – Variable cost
= 300,000 – 80,000*2
= $140,000
1-b Manufacturing overhead = 140,000 + 60,000*2 = $260,000
Total manufacturing cost = $536,000
Unit product cost = 536000/60,000 = $8.933
3.Total manufacturing overhead cost = 300,000+220,000+180,000+260,000 = $960,000
Predetermined rate = 960,000/200,000 = $4.8 per unit
Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand....
Kingsport Containers Company makes a single product that is
subject to wide seasonal variations in demand. The company uses a
job-order costing system and computes plantwide predetermined
overhead rates on a quarterly basis using the number of units to be
produced as the allocation base. Its estimated costs, by quarter,
for the coming year are given below:
Exercise 2-11 (Algo) Varying Plantwide Predetermined Overhead Rates (LO2-1, LO2-2, LO2-3] Kingsport Containers Company makes a single product that is subject to wide...
Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below: Direct materials Direct labor Manufacturing overhead Total manufacturing costs (a) Number of units to be produced (b) Estimated unit product cost (a) =...
Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below: Quarter First Second Third Fourth Direct materials $ 240,000 $ 120,000 $ 60,000 $ 180,000 Direct labor 120,000 60,000 30,000 90,000...
Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below: Quarter First Second Third Fourth Direct materials $240,000 $120,000 $ 60,000 $180,000 Direct labor 160,000 80,000 40,000 120,000 Manufacturing overhead 240,000 216,000 204,000...
Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below: Quarter First Second Third Fourth Direct materials $ 240,000 $ 120,000 $ 60,000 $ 180,000 Direct labor 160,000 80,000 40,000 120,000 Manufacturing overhead...
Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below: Quarter First Second Third Fourth Direct materials $ 280,000 $ 140,000 $ 70,000 $ 210,000 Direct labor 120,000 60,000 30,000 90,000 Manufacturing overhead...
Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below: Quarter First Second Third Fourth Direct materials $ 280,000 $ 140,000 $ 70,000 $ 210,000 Direct labor 160,000 80,000 40,000 120,000...
Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below: Quarter First Second Third Fourth Direct materials $ 160,000 $ 80,000 $ 40,000 $ 120,000 Direct labor 80,000 40,000 20,000 60,000...
Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below: Quarter First Second Third Fourth Direct materials $ 280,000 $ 140,000 $ 70,000 $ 210,000 Direct labor 120,000 60,000 30,000 90,000 Manufacturing overhead...
Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below: Quarter First Second Third Fourth Direct materials $ 280,000 $ 140,000 $ 70,000 $ 210,000 Direct labor 80,000 40,000 20,000 60,000 Manufacturing overhead...