Total order per month = 10
Order processing cost = 240000
Order processing cost per order = 240000/10 = 24000
Order processing overhead cost allocated to Jeans = (10-2)*24000 = $192000
Allain Inc. manufactures two products, sweat suits and jeans. The company has estimated its overhead in...
QUESTION 23 Nont Company manufactures two products, pillows and comforters. The company has estimated its overhead in the order processing department to be 5500,000. The company produces 50 000 pillows and 30.000 comforters each year Pillow production requires 25 000 machine hours, Comforter production requires 50 000 machine hours. The company places raw materials onders 10 times per month for raw materials for pillows and the remainder for raw materials for comforters. How much of the order processing overhead should...
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Sheridan Inc, manufactures two products, sweaters and jackets. The company has estimated its overhead in the order-processing department to be $178000. The company produces 46000 sweaters and 81000 jackets each year. Sweater production requires 27000 machine hours, jacket production requires 45000 machine hours. The company places raw materials orders 8 times per month, 2 times for raw materials for sweaters and the remainder for raw materials for jackets. How much of...
A clothing line manufactures two types of suits—Hand made and Machine made—and applies manufacturing overhead to all units using direct labor hours. Production information follows. Anticipated volume (units): Hand Made: 31,000 Machine Made: 58,000 Direct-material cost per unit: Hand Made: $ 75 Machine Made: $45 Direct-labor cost per unit $15 per hour Hand made = 4 hours per suit; total hours for HM 124,000 Machine made = 2 hours per suit; total hours for MM 116,000 The controller, who is...
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 ...
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Muldorf, Inc. has two manufacturing departments, Forming and Assembly. The company applies manufacturing overhead to jobs using a predetermined rate based on machine hours in the Forming Department and on direct labor hours in the Assembly Department. Information used to compute predetermined rates is given below: Estimated total manufacturing overhead cost Estimated machine hours Estimated direct labor hours Forming Assembly $325,000 $200,000 100,000 60,000 25,000 80,000 Job 99 required 400 machine hours in the Forming Department and 200 direct labor...
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