Question

1. Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow:

	Basic			Dominator			Total
Units produced		1,200			450			1,650
Machine-hours		3,600			2,000			5,600
Direct labor-hours		3,300			2,900			6,200
Direct materials costs	$	11,300		$	3,800		$	15,100
Direct labor costs		69,400			36,100			105,500
Manufacturing overhead costs								168,000
Total costs							$	288,600

Required:

Compute the predetermined overhead rate assuming that Tiger Furnishings uses machine-hours to allocate overhead costs. (Round your answer to 2 decimal places.)

Predetermined overhead rate per machine-hour

2. Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow:

	Basic			Dominator			Total
Units produced		1,000			400			1,400
Machine-hours		4,300			1,400			5,700
Direct labor-hours		3,900			2,100			6,000
Direct materials costs	$	8,900		$	3,250		$	12,150
Direct labor costs		68,400			36,000			104,400
Manufacturing overhead costs								205,560
Total costs							$	322,110

Required:

Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor costs to allocate overhead costs. (Round your answer to 2 decimal places.)

Predetermined overhead rate %of direct labor cost

3. Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow:

	Basic		Dominator		Total
Units produced		1,100		350		1,450
Machine-hours		3,800		2,300		6,100
Direct labor-hours		3,600		1,600		5,200
Direct materials costs	$	10,300	$	4,250	$	14,550
Direct labor costs		57,600		39,900		97,500
Manufacturing overhead costs						179,920
Total costs					$	291,970

Required:

Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor-hours to allocate overhead costs. (Round your answer to 2 decimal places.)

Predetermined overhead rate per direct labor hour

4. Donovan & Parents produces soccer shorts and jerseys for youth leagues. Most of the production is done by machine. Data on operations and costs for March follow.

	Jerseys			Shorts			Total
Units produced		9,300			5,800			15,100
Machine-hours used		980			820			1,800
Direct labor-hours		250			120			370
Direct materials costs	$	11,100		$	8,300		$	19,400
Direct labor costs	$	5,000		$	2,400		$	7,400
Manufacturing overhead costs							$	24,056

Management asks the firm’s cost accountant to compute product costs. The accountant first assigns overhead costs to two pools: overhead related to direct materials and overhead related to machine-hours. The analysis of overhead accounts by the cost accountant follows.

Account	Amount			Related to:
Utilities	$	3,910		Machine-hours
Supplies		2,850		Materials
Machine depreciation and maintenance		10,080		Machine-hours
Purchasing and storing materials		3,746		Materials
Miscellaneous		3,470		Machine-hours

Required:

a. Compute the predetermined overhead rates assuming that Donovan uses machine-hours to allocate machine-related overhead costs and materials costs to allocate materials-related overhead costs.

b. Compute the total costs of production and the cost per unit for each of the two products for March.

Required A : Overhead rate

Machine-hour related per hour

Materials related %

Required B:

Jerseys Shorts

Total cost

Cost per unit

Answer 1

1. Pre determined OH rate = Total overhead cost/Machine hours

Total manufacturing Overhead = $168,000

machine hours = 5,600

=$168,000 / 5,600

=$30 per machine hour

2.Pre determined OH rate = Total overhead cost/ Direct Labor cost

=[$205,560/$104,400]*100

=196.90% per direct labor cost

3.Pre determined OH rate = Total overhead cost/ Direct labor hours

=$179,920/5,200

=$34.6 per direct labor Hour

we can answer one question per post . However i have tried to solve 3.

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