ANGPOGINISHERWIN Company uses two rates to apply overhead to jobs. One rate is based on material...

  

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ANGPOGINISHERWIN Company uses two rates to apply overhead to jobs. One rate is based on material cost, the other on machine time. The following data is related to the current year. Cost Information Materials related overhead Machine related overhead Cost of materials used on jobs Machine hours Data related to three jobs worked on in July follow: Cost Elements Materials Direct Labor Costs Machine hours Units produced Job 101 Required: 5. Amount of overhead applied to Job 103 6. Manufacturing cost for Job 101 Budget 1,280,000 2,200,000 3,200,000 400,000 Job 102 Job 103 42,000 164,000 32,000 17,000 17,000 9,000 5,000 7,000 Actual material-related overhead was Php 118,400 and actual machine related overhead was Php 185,600 78,000 36,000 5,800 10,000 Below are the balances and information taken from the records of SHERWIN POGI Company for the last quarter of the current year: Inventories: October 1 Raw Materials Work In Process Finished Goods Cost of Goods Sold 134,000 354,000 594,600 10,800,000 4,200,000 debit Additional Information: a. During the period, purchases of raw materials totaled Php 1,093,400 while physical count of raw materials revealed that Php 407,000 were unused. b. 39,800 direct labor hours were utilized distributed as follows: o 25,000 hours worked on regular time at Php 42.50 per hour. o 14,000 hours worked at 32.50 plus 10% special night premium o 800 hours worked on overtime at regular rate plus 30% OT premium. c. Overhead is charged to production at 80% of direct labor costs. d. At the end of the year, records show that work in process increased by Php 85,000 while Finished goods decreased by Php 150,000 Required: 3. The total factory costs for the quarter amounted to: 4. The costs of goods manufactured for the quarter amounted to: Orange Ski Company recently expanded its manufacturing capacity to allow it to produce up to 15,000 pairs of cross-country skis of either the Mountaineering model or Touring model. The sales department assures management that it can sell between 9,000 and 13,000 pairs (units) of either product this year. Because the models are very similar. Orange Ski will produce only one of the two models. The information below was compiled by the accounting department. Mountaineering Selling Price Per Unit Variable Cost Per Unit 88.00 52.80 Touring 80.00 52.80 Fixed costs will total Php 369,000 if the mountaineering model is produced but will be only Php 316,800 if the touring model is produced. Orange Ski Company is subject to a 40% income tax rate Required: 1. The total sales revenue at which Orange Ski Company would make the same profit or loss regardless of the Ski model it decided to produce 2. How much would be the variable cost per unit of the Touring Model have to change before it had the same breakeven point in units as the Mountaineering model? ANGPOGINISHERWIN Company uses two rates to apply overhead to jobs. One rate is based on material cost, the other on machine time. The following data is related to the current year. Cost Information Materials related overhead Machine related overhead Cost of materials used on jobs Machine hours Data related to three jobs worked on in July follow: Cost Elements Materials Direct Labor Costs Machine hours Units produced Job 101 Required: 5. Amount of overhead applied to Job 103 6. Manufacturing cost for Job 101 Budget 1,280,000 2,200,000 3,200,000 400,000 Job 102 Job 103 42,000 164,000 32,000 17,000 17,000 9,000 5,000 7,000 Actual material-related overhead was Php 118,400 and actual machine related overhead was Php 185,600 78,000 36,000 5,800 10,000 Below are the balances and information taken from the records of SHERWIN POGI Company for the last quarter of the current year: Inventories: October 1 Raw Materials Work In Process Finished Goods Cost of Goods Sold 134,000 354,000 594,600 10,800,000 4,200,000 debit Additional Information: a. During the period, purchases of raw materials totaled Php 1,093,400 while physical count of raw materials revealed that Php 407,000 were unused. b. 39,800 direct labor hours were utilized distributed as follows: o 25,000 hours worked on regular time at Php 42.50 per hour. o 14,000 hours worked at 32.50 plus 10% special night premium o 800 hours worked on overtime at regular rate plus 30% OT premium. c. Overhead is charged to production at 80% of direct labor costs. d. At the end of the year, records show that work in process increased by Php 85,000 while Finished goods decreased by Php 150,000 Required: 3. The total factory costs for the quarter amounted to: 4. The costs of goods manufactured for the quarter amounted to: Orange Ski Company recently expanded its manufacturing capacity to allow it to produce up to 15,000 pairs of cross-country skis of either the Mountaineering model or Touring model. The sales department assures management that it can sell between 9,000 and 13,000 pairs (units) of either product this year. Because the models are very similar. Orange Ski will produce only one of the two models. The information below was compiled by the accounting department. Mountaineering Selling Price Per Unit Variable Cost Per Unit 88.00 52.80 Touring 80.00 52.80 Fixed costs will total Php 369,000 if the mountaineering model is produced but will be only Php 316,800 if the touring model is produced. Orange Ski Company is subject to a 40% income tax rate Required: 1. The total sales revenue at which Orange Ski Company would make the same profit or loss regardless of the Ski model it decided to produce 2. How much would be the variable cost per unit of the Touring Model have to change before it had the same breakeven point in units as the Mountaineering model?

Answer rating: 100% (QA)

Lets solve the required problems step by step 1 Amount of overhead applied to Job 103 To calculate the overhead applied to Job 103 we need to use the machine timebased overhead rate First lets find th... View the full answer