Homework Answers
| 1) | ||||
| Home tools | Professional tools | Indirect costs | ||
| Salary of vice president of production | $ 100,000.00 | |||
| Salary of manager, home tools | $ 30,000.00 | |||
| Salary of manager, professional tools | $ 37,500.00 | |||
| Direct materials cost, home tools | $ 150,000.00 | |||
| Direct materials cost, professional tools | $ 187,500.00 | |||
| Direct labor cost, home tools | $ 168,000.00 | |||
| Direct labor cost, professional tools | $ 207,000.00 | |||
| Direct utilities cost , home tools | $ 22,500.00 | |||
| Direct utilities cost, professional tools | $ 30,000.00 | |||
| General factory wide utilities | $ 21,000.00 | |||
| Production supplies | $ 27,000.00 | |||
| Frenge benefits | $ 75,000.00 | |||
| Depreciation | $ 180,000.00 | |||
| Total | $ 370,500.00 | $ 462,000.00 | $ 403,000.00 | |
| 2) | ||||
| Cost | Base | Computation | ||
| Salary of vice president of production | # of Departments | 100,000/2 | $ 50,000.00 | per dept. |
| General factory wide utilities | Direct utility | 21000/(22500+30000) | $ 0.40 | Per Direct Utility |
| Production supplies | Direct Material | 27000/(150000+187500) | $ 0.08 | Per Direct Material |
| Frenge benefits | Direct labor | 75000/(168000 + 207000) | $ 0.20 | Per Direct Labour |
| Depreciation | Machine Hours | $180,000 /(2500+3500) | $ 30.00 | Per Machine Hours |
| Allocated to Deparment of Home Tools | Allocated to Deparment of Professional Tools | |||
| Salary of vice president of production | $ 50,000.00 | $ 50,000.00 | ||
| General factory wide utilities | $ 9,000.00 | $ 12,000.00 | ||
| Production supplies | $ 12,000.00 | $ 15,000.00 | ||
| Frenge benefits | $ 33,600.00 | $ 41,400.00 | ||
| Depreciation | $ 75,000.00 | $ 105,000.00 | ||
| Total | $ 179,600.00 | $ 223,400.00 | ||
| 3) | Home tools | Professional tools | ||
| Total direct cost | $ 370,500.00 | $ 462,000.00 | ||
| Total Indirect cost | $ 179,600.00 | $ 223,400.00 | ||
| Total Production costs (a) | $ 550,100.00 | $ 685,400.00 | ||
| Number of units (b) | 30000 | 20000 | ||
| Cost per unit (cost = a / b) | $ 18.34 | $ 34.27 | ||
| Price (cost x 1 + 30%) | $ 23.84 | $ 44.55 |
Add Answer to:
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ACCT 2301 Cost Allocation Handout #16 Os company has two production departments in its manufacturing acilities. Home Tools specializes in hond tools for individual home users, and ofessional Tools makes sophisticated tools for professional maintenance Otto's accountant has identified the following annual costs associated with these two products: Facile Salary of vice president of production Salary d e cheme tools Salary Re s to Direct materials cost home tools Direct materials colossional tools Direct labor cosm os Direct labores professionals...
ACCT 2301 Cost Allocation Handout #16 Os company has two production departments in its manufacturing acilities....
ACCT 2301 Cost Allocation Handout #16 Os company has two production departments in its manufacturing acilities. Home Tools specializes in hond tools for individual home users, and ofessional Tools makes sophisticated tools for professional maintenance Otto's accountant has identified the following annual costs associated with these two products: Facile Salary of vice president of production Salary d e cheme tools Salary Re s to Direct materials cost home tools Direct materials colossional tools Direct labor cosm os Direct labores professionals...
EXERCISE 2: Gerald Manufacturing makes two different Products, M and N. The company's two departments are named aft...
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Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production i...
Harbour Company makes two models of electronic tablets, the Home
and the Work. Basic production information follows:
Home
Work
Direct materials cost per unit
$
38
$
71
Direct labor cost per unit
16
40
Sales price per unit
354
581
Expected production per month
780
units
330
units
Harbour has monthly overhead of $173,500, which is divided into
the following cost pools:
Setup costs
$
73,600
Quality control
56,400
Maintenance
43,500
Total
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The company has also compiled...
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ACCT 2301 Cost Allocation Handout #16 Os company has two production departments in its manufacturing acilities. Home Tools specializes in hond tools for individual home users, and ofessional Tools makes sophisticated tools for professional maintenance Otto's accountant has identified the following annual costs associated with these two products: Facile Salary of vice president of production Salary d e cheme tools Salary Re s to Direct materials cost home tools Direct materials colossional tools Direct labor cosm os Direct labores professionals...
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Harbour Company makes two models of electronic tablets, the Home
and the Work. Basic production information follows:
Home
Work
Direct materials cost per unit
$
38
$
71
Direct labor cost per unit
16
40
Sales price per unit
354
581
Expected production per month
780
units
330
units
Harbour has monthly overhead of $173,500, which is divided into
the following cost pools:
Setup costs
$
73,600
Quality control
56,400
Maintenance
43,500
Total
$
173,500
The company has also compiled...
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