Question

The Green Company makes boats from wood. Job 489 is to build 40 rowboats. Job 489...

The Green Company makes boats from wood. Job 489 is to build 40 rowboats.

Job 489 requires 1,000 pounds of wood costing $8 per pound. It requires 60 hours of direct labor costing $25 per hour.

                                                               Total cost for all jobs        Total amount of activity for all jobs

Type of manufacturing overhead      for the whole year                      for the whole year

Setup Cost                                                        $50,000                                 400 setups

Materials Handling                                         320,000                           16,000 moves

Electricity                                                           30,000                             6,000 machine hours

                                                                          _______

Total manufacturing overhead cost

for all jobs during the whole year             $400,000

Please calculate the following if the Green Company uses activity based costing (the ABC method)::

The allocation rate for setup cost

The allocation rate for materials handling

The allocation rate for electricity

The direct materials cost of job 489

The direct labor cost of job 489

The manufacturing overhead cost applied to job 489 if job 489 requires 4 setups, 150 moves of materials, and 40 machine hours

The total cost of job 489    

The cost per boat

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a) allocation rate for setup cost = 50000/400 = 125 per setups

b) allocation rate for materials handling = 320000/16000 = 20 per moves

c) allocation rate for electricity = 30000/6000 = 5 per machine hour

d) The direct materials cost of job 489 = 1000*8 = $8000

e) The direct labor cost of job 489 = 60*25 = 1500

f) The manufacturing overhead cost applied to job 489 = (4*125+20*150+5*40) = 3700

g) The total cost of job 489 = (8000+1500+3700) = 13200

h) The cost per boat = (13200/40) = 330 per boat

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
4A. Harootunian Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based...
4A. Harootunian Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 80,000 Total fixed manufacturing overhead cost $ 312,000 Variable manufacturing overhead per machine-hour $ 2.10 Recently, Job T629 was completed with the following characteristics: Number of units in the job 50 Total machine-hours 200 The predetermined overhead rate is closest to: Multiple Choice $8.10 per...
Wings Co. budgeted $569,000 manufacturing direct wages, 2,500 direct labor hours, and had the following manufacturing...
Wings Co. budgeted $569,000 manufacturing direct wages, 2,500 direct labor hours, and had the following manufacturing overhead: Overhead Cost Pool Budgeted Overhead Cost Budgeted Level for Cost Driver Overhead Cost Driver Materials handling $ 184,000 4,600 pounds Weight of materials Machine setup 15,900 530 setups Number of setups Machine repair 1,200 30,000 machine hours Machine hours Inspections 21,000 300 inspections Number of inspections Requirements for Job #971 which manufactured 4 units of product: Direct labor 20 hours Direct materials 190...
Job Costs Using Activity-Based Costing Heitger Company is a job-order costing firm that uses activity-based costing...
Job Costs Using Activity-Based Costing Heitger Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Heitger identified three overhead activities and related drivers. Budgeted information for the year is as follows: Activity Cost    Driver Amount of Driver Materials handling $ 72,000      Number of moves 3,000   Engineering 165,000      Number of change orders 10,000   Other overhead 280,000      Direct labor hours 50,000   Heitger worked on four jobs in July. Data are as follows: Job 13-43 Job 13-44...
Westerner Manufacturing has established the following cost pools for this year: Cost Pool Costs Cost Drivers...
Westerner Manufacturing has established the following cost pools for this year: Cost Pool Costs Cost Drivers Maintenance $20,000 10,000 machine hours Material handling $25,000 250 moves Machine setup $30,000 1,000 hours Inspection $25,000 500 inspections Total $100,000 N/A The following information pertains to two representative jobs completed during January: Item Job 101 Job 102 Direct materials $10,000 $7,500 Direct labor $8,000 $5,000 Units produced 2,000 1,500 Direct labor hours 640 400 Machine hours 700 650 Number of material moves 40...
A company has identified the following overhead costs and cost drivers for the coming year:     ...
A company has identified the following overhead costs and cost drivers for the coming year:               Budgeted   Overhead Item   Cost Driver Budgeted Cost    Activity Level   Machine setup   Number of setups $ 25,300           220           Inspection   Number of inspections 124,200         4,600           Material handling   Number of material moves 99,200         6,200           Engineering   Engineering hours 12,400         620                  Budgeted direct labor cost was $130,550 and budgeted direct material cost was $369,540. The following information was collected on...
Traditional vs. Activity Based Costing – Chapter 7 Job A requires $5,600 of direct material and...
Traditional vs. Activity Based Costing – Chapter 7 Job A requires $5,600 of direct material and $3,500 of Direct Labor to produce. We use 100 direct labor hours to produce Job A. Job A requires 4 machine setups and 20 testing hours. We estimate manufacturing overhead to be $1,020,000 for the next year and we expect to have 40,000 direct labor hours used in our manufacturing plant. Currently we use Traditional Costing for costing our products. Compute the POHR What...
Bunker makes two types of briefcase, fabric and leather. The company is currently using a traditional...
Bunker makes two types of briefcase, fabric and leather. The company is currently using a traditional costing system with labor hours as the cost driver but is considering switching to an activity-based costing system. In preparation for the possible switch, Bunker has identified two activity cost pools: materials handling and setup. Pertinent data follow:      Fabric Case Leather Case Number of labor hours 24,000 9,000 Number of material moves 798 1,102 Number of setups 42 188 Total estimated overhead costs are...
Bunker makes two types of briefcase, fabric and leather. The company is currently using a traditional...
Bunker makes two types of briefcase, fabric and leather. The company is currently using a traditional costing system with labor hours as the cost driver but is considering switching to an activity-based costing system. In preparation for the possible switch, Bunker has identified two activity cost pools: materials handling and setup. Pertinent data follow:        Fabric Case   Leather Case Number of labor hours   14,000      16,000      Number of material moves   765      935      Number of setups   45  ...
Assume that Panasonic Company has determined its estimated total manufacturing overhead cost for one of its...
Assume that Panasonic Company has determined its estimated total manufacturing overhead cost for one of its plants to be $636,400, consisting of the following activity cost pools for the current month: Activity Centers Activity Costs Assembly setups 132,000 Materials handling 64,800 Assembly 360,000 Maintenance 79,600 Total: 206,700 Cost Drivers Activity Level Setup hours 2,000 Number of moves 600 Assembly hours 18,000 Maintenance hours 1,990 Total direct labor hours used during the month were 14,800. Panasonic produces many different electronic products,...
The Maclin Company uses a​ job-costing system at its​ Dover, Delaware, plant. The plant has a...
The Maclin Company uses a​ job-costing system at its​ Dover, Delaware, plant. The plant has a machining department and a finishing department. Maclin uses normal costing with two​ direct-cost categories​ (direct materials and direct manufacturing​ labor) and two manufacturing overhead cost pools​ (the machining department with​machine-hours as the allocation base and the finishing department with direct manufacturing labor costs as the allocation​ base). The 2017 budget for the plant is as​follows: Machining Department Finishing Department Manufacturing overhead costs $9,180,000 $8,181,000...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT