Royal Company uses budgeted overhead rates to apply overhead
Question # 00473439
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Updated on: 01/30/2017 11:31 PM Due on: 01/31/2017
| 1.(TCO 2) Royal Company uses budgeted overhead rates to apply overhead to individual jobs. It uses a system based on machine hours. Last year, the company made the following estimates for this year. Direct labor costs $9,900,000 Factory overhead costs $11,748,000 Direct Labor Hours $550,000 Machine Hours $660,000 (a) What is the budgeted overhead rate for the company? (Show your work) (b) If Job #31255 had the costs listed below, what would be the total cost of Job #31255? (Show your work) Material costs were $300,000; Direct labor costs were $216,000; Direct labor hours were 12,000; and Machine hours were 15,000. (Points : 30) |
| Question 2.2.(TCO 3) James Company uses process costing to track its costs in two sequential production departments: Forming and Finishing. The following information is provided regarding the Forming Department: Forming Department Month Ended July 31 Unit information Beginning work in process, July 1 --- 6,000 Started into production during July --- 18,000 Completed and transferred to Finished Department during July --- 16,000 Ending work in process, July 31 (30% complete as to direct materials and 40% complete as to conversion costs) --- 8,000 Cost information: Beginning work in process as of July 1 (consists of $5,000 of direct materials costs and $9,500 of conversion costs) --- $14,500 Direct materials used in July --- $27,936 Conversion costs incurred in July --- $34,350 Required: (a) Calculate the equivalent units for direct materials. (Show your work) (b) Calculate the cost per equivalent unit for direct materials. (Show your work) (Points : 30) |
| Question 3.3.(TCO 6) Classify each of the costs below within the ABC costing hierarchy as either unit-level, batch-level, product-level, or facility-level. (a) Factory insurance (b) Direct labor (c) Costs to develop new products (d) Painting each product (e) Receiving raw materials from suppliers (f) Training costs on sexual harassment in the workplace (Points : 30) |
Question 4. 4.(TCO 2) Drake Company incurred costs of $77,000 for direct materials (raw) purchased. Direct labor was $45,000 and factory overhead was $22,000 for March.Inventories were as follows: Raw materials beginning $10,000; raw materials ending $14,000 Work-in-process beginning $36,000; work-in-process ending $24,000 Finished goods beginning $5,000; finished goods ending $10,000 Required: Calculate the cost of goods manufactured for March for Drake Company. Show your work. (Points : 30) |
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Rating:
/5
Solution: Royal Company uses budgeted overhead rates to apply overhead