Question

The shepard company is to submit a bid on the production of 10,000 cermaic salad bowls....

The shepard company is to submit a bid on the production of 10,000 cermaic salad bowls. It's the estimated that the cost of materials will be $7,500 and direct labor of $10,000. Factory overhad is applied at $5 per direct labor hour in the molding department and at 120% of the direct labor cost in the finishing department. It is estimated that 800 direct labor hours hours will be required in molding and that direct labor cost in finishing will be $4,300. The company wishes a bid price consisting of mark up of 40% of its total production cost. Find 1) Estimated cost to produce 2) Estimated prime cost 3) Estimated conversion cost 4) Bid price

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1) Estimated cost to produce = $26,600

2) Estimated prime cost = $17,500

3) Estimated conversion cost = $9,160

4) Bid price = $ 37,324

Calculation Table =

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
Indirect Cost Allocation:Direct Method Sprint Manufacturing Company has two production departments, Melting and Molding. Direct general...
Indirect Cost Allocation:Direct Method Sprint Manufacturing Company has two production departments, Melting and Molding. Direct general plant management and plant security costs benefit both production departments. Sprint allocates general plant management costs on the basis of the number of production employees and plant security costs on the basis of space occupied by the production departments. In November, the following overhead costs were recorded: Melting Department direct overhead $180,000 Molding Department direct overhead 400,000 General plant management 100,000 Plant security 35,000...
The following information is available pertaining to the Production Division of Clarkson Enterprises: Assembly Dept. Finishing...
The following information is available pertaining to the Production Division of Clarkson Enterprises: Assembly Dept. Finishing Dept. Total Overhead costs $10,000 $30,000 $40,000 Direct labor hours 8,000 2,000 10,000 Machine hours 3,000 5,000 8,000 Production information pertaining to Job 4X5: Assembly Dept. Finishing Dept. Total Prime costs $2,380 $-0- $2,380 Direct labor hours 280 -0- 280 Machine hours -0- -0- -0- Units produced 500 -0- 500 1. Refer to Figure 5-7. What is the plant wide overhead rate based on...
Opunui Corporation has two manufacturing departments--Molding and Finishing. The company used the following data at the...
Opunui Corporation has two manufacturing departments--Molding and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Molding Finishing Total Estimated total machine-hours (MHs) 6,500    3,500 10,000 Estimated total fixed manufacturing overhead cost    $ 23,000 $4,600 $ 27,600 Estimated variable manufacturing overhead cost per MH $ 2.00    $4.00 During the most recent month, the company started and completed two jobs--Job A and Job M. There were no beginning inventories....
The ABC Company required 10,000 direct labor hours in production. The standard allowed for 9,000 hours...
The ABC Company required 10,000 direct labor hours in production. The standard allowed for 9,000 hours at a pay rate of $18 per hour. If the company had an unfavorable direct labor rate variance of $6,000 that was largely caused by scheduling high skill-level worksers to perform low-skill level activities, who would most likely be held accountable for the variance? A. the production department manager B.the purchasing department manager C. the personnel department manager D. the sales manager
Hickingbottom Corporation has two production departments, Forming and Finishing. The company uses a job-order costing system...
Hickingbottom Corporation has two production departments, Forming and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department’s predetermined overhead rate is based on machine-hours and the Finishing Department’s predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Forming Finishing Machine-hours 17,000 15,000 Direct labor-hours 1,000 7,000 Total fixed manufacturing overhead cost $ 96,900 $ 65,800...
The following product costs are available for Kellee Company on the production of eyeglass frames: direct...
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6,425 equivalent units are...
Celestial Artistry Company is developing departmental overhead rates based on direct-labor hours for its two production...
Celestial Artistry Company is developing departmental overhead rates based on direct-labor hours for its two production departments, Etching and Finishing. The Etching Department employs 20 people and the Finishing Department employs 80 people. Each person in these two departments works 2,000 hours per year. The production-related overhead costs for the Etching Department are budgeted at $200,000, and the Finishing Department costs are budgeted at $320,000. Two service departments, Maintenance and Computing, directly support the two production departments. These service departments...
The following information is available pertaining to the Production Division of Clarkson Enterprises: Assembly Dept.      ...
The following information is available pertaining to the Production Division of Clarkson Enterprises: Assembly Dept.       Finishing Dept.        Total Overhead costs                 $10,000        $30,000               $40,000 Direct labor hours 8,000           2,000                    10,000 Machine hours                 3,000           5,000                      8,000 Production information pertaining to Job 4X5: Assembly Dept.       Finishing Dept.        Total Prime costs           $2,380                    $-0-                        $2,380 Direct labor hours    280                         -0-                          280 Machine...
Production costs chargeable to the Finishing Department in June in Hollins Company are materials $14,016, labor...
Production costs chargeable to the Finishing Department in June in Hollins Company are materials $14,016, labor $35,300, and overhead $19,762. Equivalent units of production are materials 21,900 and conversion costs 20,700. Compute the unit costs for materials and conversion costs. (Round answers to 2 decimal places, e.g. 2.25.) Materials cost per unit $ Conversion cost per unit $
What is the difference between the plant-wide overhead allocation approach and the departmental overhead allocation approach?...
What is the difference between the plant-wide overhead allocation approach and the departmental overhead allocation approach? A. The plant-wide rate is determined from the average of the individual departmental rates. Using a plant-wide rate is a more efficient manner of accounting and providing management information B. The total plant rate is obtained by divided by the total number of departments. It is a more efficient manner of accounting and providing management information. C. The plant-wide allocation approach uses one cost...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT