1.
Predetermined overhead rate = Estimated overhead cost / Estimated direct labor hours
Predetermined overhead rate = $800,000 / 25,000 = $32 per hour
Standard | Enhanced | |
Direct material | $75,000 (3,000*$25) | $160,000 (4,000*$40) |
Direct labor | 108,000 (3,000*3*$12) | 192,000 (4,000*4*$12) |
Applied overhead | 288,000 (3,000*3*$32) | 512,000 (4,000*4*$32) |
Total manufacturing costs | $471,000 | $864,000 |
Units produced | 3,000 | 4,000 |
Manufacturing cost per unit | $157 | $216 |
2.
Activity | Overhead cost | Cost driver | Activity rate | Standard | Enhanced | |
Order processing | $150,000 | 500 | $300 | per order processed | $90,000 (300*$300) | $60,000 (200*$300) |
Machine processing | 560,000 | 40,000 | 14 | per machine hour | 252,000 (18,000*$14) | 308,000 (22,000*$14) |
Product inspection | 90,000 | 10,000 | 9 | per inspection hour | 18,000 (2,000*$9) | 72,000 (8,000*$9) |
Total | $800,000 | $360,000 | $440,000 |
Standard | Enhanced | |
Direct material | $75,000 (3,000*$25) | $160,000 (4,000*$40) |
Direct labor | 108,000 (3,000*3*$12) | 192,000 (4,000*4*$12) |
Applied overhead | 360,000 | 440,000 |
Total manufacturing costs | $543,000 | $792,000 |
Units produced | 3,000 | 4,000 |
Manufacturing cost per unit | $181 | $198 |
Ontario, Inc, manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor...
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company's products follows. Standard: Estimated production volume, 3,000 units Direct-material cost, $25 per unit Direct labor per unit, 3 hours at $12 per hour Enhanced Estimated production volume, 4,000 units Direct-material cost, $40 per unit Direct labor per unit 4 hours at $12 per...
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company's products follows. Standard: Estimated production volume, 3,000 units Direct-material cost, $25 per unit Direct labor per unit, 3 hours at $12 per hour Enhanced: Estimated production volume, 4,000 units Direct-material cost, $40 per unit Direct labor per unit, 4 hours at $12 per...
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company's products follows. 5 points Standard: Estimated production volume, 3,000 units Direct-material cost, $25 per unit Direct labor per unit, 3 hours at $12 per hour eBook Enhanced Estimated production volume, 4,000 units Direct-material cost, $40 per unit Direct labor per unit, 4 hours...
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company's products follows. 5 points Standard: Estimated production volume, 3.000 units Direct-material cost, $25 per unit Direct labor per unit, 3 hours at $12 per hour eBook Enhanced: Estimated production volume, 4,000 units Direct-material cost, $40 per unit Direct labor per unit. 4 hours...
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company's products follows. points Standard: Estimated production volume, 3,000 units Direct-material cost, $25 per unit Direct labor per unit, 3 hours at $12 per hour eBook Enhanced: Estimated production volume, 4,000 units Direct-material cost, $40 per unit Direct labor per unit, 4 hours at...
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies Overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company's products follows. points Standard: Estimated production volume, 3,000 units Direct-material cost, $25 per unit Direct labor per unit, 3 hours at $12 per hour eBook Enhanced: Estimated production volume, 4,000 units Direct-material cost, $40 per unit Direct labor per unit, 4 hours at...
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company’s products follows. Standard: Est. production volume, 3000 units Direct-material cost, $25 per Unit Direct Labor per unit, 3 hrs at $12 per hr Enhanced: Est. production volume, 4000 units Direct material cost, $40 per Unit ...
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company’s products follows. Standard: Est. production volume, 3000 units Direct-material cost, $25 per Unit Direct Labor per unit, 3 hrs at $12 per hr Enhanced: Est. production volume, 4000 units Direct material cost, $40 per Unit Direct Labor per unit,...
A. Assuming use of direct-labor hours to apply overhead to production, compute the unit manufacturing costs of the Standard and Enhanced products if the expected manufacturing volume is attained. Manufacturing cost per unit: Standard $ ? and Enhanced $ ? B. Assuming use of activity-based costing, compute the unit manufacturing costs of the Standard and Enhanced products if the expected manufacturing volume is attained. Manufacturing cost per unit: Standard $ ? and Enhanced $ ? C. By using direct-labor hours...
(25 marks) Nilam Sdn. Bhd. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. The anticipated overhead and direct labor time for the upcoming period is RM800,000 and RM25,000 hours respectively. The information about the company's products follows: Estimated production volume Direct material cost Direct labor per unit Standard 3,000 units RM 25 per unit 3 hours at RM12 per hour Enhanced 4,000 units RM 40 per unit 4 hours at RM12 per hour...