Question

Job Costing Time Period Used to compute Indirect Cost Rates Capitola Manufacturing produces surfboards. The company uses a normal-costing system and allocates manufacturing overhead on the basis of direct manufacturing labor-hours. Most of the company's production and sales occur in the first and second quarters of the year. The company is in danger of losing one of its larger customers, Pacific Wholesale, due to large fluctuations in price. The owner of Capitola has requested an analysis of the manufacturing cost per unit in the second and third quarters. You have been provided the following budgeted information for the coming year: Quarter 2 3 400 100 1 500 4 Surfboards manufactured and sold 250 Additonal information: Direct manufacturing labor hours Actual direct material cost Actual direct manufacturing labor rate Budgeted variable manufacturing overhead Budgeted fixed manufacturing overhead 2 hours per board $65 per board $20 per hour $16 per direct manufacturing labor-hour $20,000 per quarter Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. Cell references and formulas should be based on the original data. If you copy/paste from the Instruction tab you will be marked wrong. Requirements 1 Calculate the total manufacturing cost per unit for the second and third quarter assuming the company allocates manufacturing overhead costs based on the budgeted manufacturing overhead rate determined for each quarter. Check your spelling carefully and do not abbreviate. 2 Calculate the total manufacturing cost per unit for the second and third quarter assuming the company allocates manufacturing overhead costs based on an annual budgeted manufacturing overhead rate. a.

I want to see the cells references, int the bar. simple explanations please. dont make it more difficult. Thanks

Answer 1

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A B C D F F G H 1 J K 500 400 100 250 1 1 2 3 4. 5 6 7 8 Surfboards manufactred and sold Additional Information: Direct manufacturing labor hours Actual direct material cost Actual direct manufacturing labor rate Budgeted variable manufacturing overhead Budgeted fixed manufacturing overhead 2 hours per board 65 per board 20 per hour 16 per direct manufacturing labor hour 20000 per quarter 9 10 Q2 Q3 11 1 26000 12 16000 6500 4000 3200 13 Direct material costs Direct manufacturing labor costs Variable manufacturing overhead costs Fixed manufacturing overhead costs Total manufacturing costs Manufacturing cost per board 14 12800 20000 74800 15 16 20000 33700 337 187 17 Q2 03 18 19 2 26000 16000 20 Direct material costs Direct manufacturing labor costs Variable manufacturing overhead costs Fixed manufacturing overhead costs* Total manufacturing costs Manufacturing cost per board 6500 4000 3200 6400 21 12800 25600 Fixed manufacturing overhead costs* Fixed overhead rate Budgeted fixed manufacturing overhead Budgeted fixed manufacturing overhead Surfboards manufactred and sold Direct manufacturing labor hours Rate For Q2 For Q3 20000 per quarter 80000 per annuam 1250 22 23 80400 20100 2500 24 201 201 32 25 26 27 25600 6400 Sheet188 Sheet189 Sheet190 Sheet191 Sheet192 Sheet193 Sheet194 Stats D Ready BO 100%

For calculation ref:

A B с D E F G H J 1 2 400 100 250 3 4 5 Surfboards manufactred and sold 500 Additional Information: Direct manufacturing labor hours 2 Actual direct material cost 65 Actual direct manufacturing labor rate 20 Budgeted variable manufacturing overhead 16 Budgeted fixed manufacturing overhead 20000 6 7 hours per board per board per hour per direct manufacturing labor hour per quarter 8 9 Q2 I=C5*D2 =C6*64*D2 =C7*C4*D2 =C8 =SUM(C11:C14) =C15/D2 Q3 =C5*E2 =C6*64*E2 =C7*C4*E2 =C8 =SUM(D11:014) =D15/E2 10 11 1 Direct material costs 12 Direct manufacturing labor costs 13 Variable manufacturing overhead costs 14 Fixed manufacturing overhead costs 15 Total manufacturing costs 16 Manufacturing cost per board 17 18 19 2 Direct material costs 20 Direct manufacturing labor costs 21 Variable manufacturing overhead costs 22 Fixed manufacturing overhead costs* 23 Total manufacturing costs 24 Manufacturing cost per board 25 Q2 Q3 per quarter per annuam =C5*D2 =C5E2 =C6*C4*D2 =C6*C4*E2 =C7*C4*D2 =C7*C4*E2 |=C8*4/(SUM(C2:F2) *2) *D2*C4 =C8*4/(SUM(C2:F2) * 2) *E2*04 =SUM(C19:C22) =SUM(D19:D22) =C23/D2 =D23/E2 Fixed manufacturing overhead costs* Fixed overhead rate Budgeted fixed manufacturing overhead =C8 Budgeted fixed manufacturing overhead =120*4 Surfboards manufactred and sold =SUM(C2:F2) Direct manufacturing labor hours =122*04 Rate =121/123 For Q2 =124*D2*04 For Q3 =124*E2*04 26 27 Sheet188 Sheet189 Sheet190 Sheet191 Sheet192 Sheet193 Sheet194 Stats Ready BO 100%