Advertisement
Not a member of Pastebin yet?
Sign Up,
it unlocks many cool features!
- Download: http://solutionzip.com/downloads/one-company-applies-manufacturing-overhead/
- 1) One Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $313,000 for the year, and machine usage is estimated at 125,200 hours.
- For the year, $337,611 of overhead costs are incurred and 132,700 hours are used.
- (a)Compute the manufacturing overhead rate for the year. (Round answers to 2 decimal places, e.g. 1.25.)
- Manufacturing overhead rate $ _________ per machine hour
- 2) The ledger of Cust Company has the following work in process account.
- Work in Process—Painting
- 5/1 Balance 4,660 5/31 Transferred out ?
- 5/31 Materials 7,150
- 5/31 Labor 3,700
- 5/31 Overhead 1,410
- 5/31 Balance ?
- Production records show that there were 400 units in the beginning inventory, 30% complete, 1,470 units started, and 1,560 units transferred out. The beginning work in process had materials cost of $2,930 and conversion costs of $1,730. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process.
- (a) How many units are in process at May 31?
- Work in process, May 31 ________units
- (b) What is the unit materials cost for May? (Round unit costs to 2 decimal places, e.g. 2.25.)
- The unit materials cost for May $ ______________
- (c) What is the unit conversion cost for May? (Round unit costs to 2 decimal places, e.g. 2.25.)
- The unit conversion cost for May $ ________
- (d) What is the total cost of units transferred out in May? $________
- (e) What is the cost of the May 31 inventory? $__________
- 3) Wilkins Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company’s operations.
- Standard Custom
- Direct labor costs $55,700 $112,000
- Machine hours 1,300 1,320
- Setup hours 96 410
- Total estimated overhead costs are $300,200. Overhead cost allocated to the machining activity cost pool is $196,600, and $103,600 is allocated to the machine setup activity cost pool.
- (a)Compute the overhead rate using the traditional (plantwide) approach. (Round answers to 2 decimal places, e.g. 12.25%.)
- Predetermined overhead rate ________% of direct labor cost
- (b) Compute the overhead rates using the activity-based costing approach.
- (c) Determine the difference in allocation between the two approaches.
- 4)
- Using these data from the comparative balance sheet of Rosalez Company, perform vertical analysis. (Round percentages to 1 decimal place, e.g. 12.5%.)
- Dec. 31, 2012 Dec. 31, 2011
- Amount Percentage Amount Percentage
- Accounts receivable$ 546,000 _____% $ 353,000 _____ %
- Inventory $ 750,500 ______% $ 612,600 ______ %
- Total assets $3,149,000 _____% $2,841,100 _____ %
- 5) Vertical analysis (common-size) percentages for Vallejo Company’s sales, cost of goods sold, and expenses are listed here.
- Vertical Analysis 2012 2011 2010
- Sales 100 % 100% 100%
- Cost of goods sold 61.7 63.5 65.3
- Expenses 24.2 27.8 29.2
- Did Vallejo’s net income as a percent of sales increase, decrease, or remain unchanged over the 3-year period? Provide numerical support for your answer.
- Download: http://solutionzip.com/downloads/one-company-applies-manufacturing-overhead/
Advertisement
Add Comment
Please, Sign In to add comment
Advertisement