Marigold Inc. manufactures two products: car wheels and truck wheels, To determine the amount of overhead...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Marigold Inc. manufactures two products: car wheels and truck wheels, To determine the amount of overhead to assign to each product line, the controller, Robert Hermann, has developed the following information. Car Truck Estimated wheels produced 35,000 15,000 Direct labor hours per wheel Total estimated overhead costs for the two product lines are $768.000. Calculate overhead rate. (Round answer to 2 decimal places, eg 12.25) Overhead rate per direct labor hour Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs. Car wheels %24 Truck wheels %24 Hermann is not satished with the traditional method of allocating overhead because he beleves that most of the overhead costs relate to the truck wheels product line because of its complexity. He therefore develops the following three activity cost popls and related cost drivers to better understand these costs. Estimated Use of Estimated Overhead Activity Cost Pools Cost Drivers Costs Setting up machines 1,000 setups $240,000 Assembling 80,000 labor hours 240,000 Inspection 1,200 Inspections 288,000 Compute the activity-based overhead rates for these three cost pools. Overhead Rates Setting up machines %24 Assembling Inspection Compute the cost that is assigned to the car wheels and truck wheels product lines using an activity-based costing system, given the following information. Estimated Use of Cost Drivers per Product Car Truck Number of setups 200 800 Direct labor hours 35,000 45,000 Number of inspections 100 1,100 Car Wheels Truck Wheels Setting up machines %24 Assembling %24 Inspection %24 Total cost assigned 24 Marigold Inc. manufactures two products: car wheels and truck wheels, To determine the amount of overhead to assign to each product line, the controller, Robert Hermann, has developed the following information. Car Truck Estimated wheels produced 35,000 15,000 Direct labor hours per wheel Total estimated overhead costs for the two product lines are $768.000. Calculate overhead rate. (Round answer to 2 decimal places, eg 12.25) Overhead rate per direct labor hour Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs. Car wheels %24 Truck wheels %24 Hermann is not satished with the traditional method of allocating overhead because he beleves that most of the overhead costs relate to the truck wheels product line because of its complexity. He therefore develops the following three activity cost popls and related cost drivers to better understand these costs. Estimated Use of Estimated Overhead Activity Cost Pools Cost Drivers Costs Setting up machines 1,000 setups $240,000 Assembling 80,000 labor hours 240,000 Inspection 1,200 Inspections 288,000 Compute the activity-based overhead rates for these three cost pools. Overhead Rates Setting up machines %24 Assembling Inspection Compute the cost that is assigned to the car wheels and truck wheels product lines using an activity-based costing system, given the following information. Estimated Use of Cost Drivers per Product Car Truck Number of setups 200 800 Direct labor hours 35,000 45,000 Number of inspections 100 1,100 Car Wheels Truck Wheels Setting up machines %24 Assembling %24 Inspection %24 Total cost assigned 24 Marigold Inc. manufactures two products: car wheels and truck wheels, To determine the amount of overhead to assign to each product line, the controller, Robert Hermann, has developed the following information. Car Truck Estimated wheels produced 35,000 15,000 Direct labor hours per wheel Total estimated overhead costs for the two product lines are $768.000. Calculate overhead rate. (Round answer to 2 decimal places, eg 12.25) Overhead rate per direct labor hour Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs. Car wheels %24 Truck wheels %24 Hermann is not satished with the traditional method of allocating overhead because he beleves that most of the overhead costs relate to the truck wheels product line because of its complexity. He therefore develops the following three activity cost popls and related cost drivers to better understand these costs. Estimated Use of Estimated Overhead Activity Cost Pools Cost Drivers Costs Setting up machines 1,000 setups $240,000 Assembling 80,000 labor hours 240,000 Inspection 1,200 Inspections 288,000 Compute the activity-based overhead rates for these three cost pools. Overhead Rates Setting up machines %24 Assembling Inspection Compute the cost that is assigned to the car wheels and truck wheels product lines using an activity-based costing system, given the following information. Estimated Use of Cost Drivers per Product Car Truck Number of setups 200 800 Direct labor hours 35,000 45,000 Number of inspections 100 1,100 Car Wheels Truck Wheels Setting up machines %24 Assembling %24 Inspection %24 Total cost assigned 24 Marigold Inc. manufactures two products: car wheels and truck wheels, To determine the amount of overhead to assign to each product line, the controller, Robert Hermann, has developed the following information. Car Truck Estimated wheels produced 35,000 15,000 Direct labor hours per wheel Total estimated overhead costs for the two product lines are $768.000. Calculate overhead rate. (Round answer to 2 decimal places, eg 12.25) Overhead rate per direct labor hour Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs. Car wheels %24 Truck wheels %24 Hermann is not satished with the traditional method of allocating overhead because he beleves that most of the overhead costs relate to the truck wheels product line because of its complexity. He therefore develops the following three activity cost popls and related cost drivers to better understand these costs. Estimated Use of Estimated Overhead Activity Cost Pools Cost Drivers Costs Setting up machines 1,000 setups $240,000 Assembling 80,000 labor hours 240,000 Inspection 1,200 Inspections 288,000 Compute the activity-based overhead rates for these three cost pools. Overhead Rates Setting up machines %24 Assembling Inspection Compute the cost that is assigned to the car wheels and truck wheels product lines using an activity-based costing system, given the following information. Estimated Use of Cost Drivers per Product Car Truck Number of setups 200 800 Direct labor hours 35,000 45,000 Number of inspections 100 1,100 Car Wheels Truck Wheels Setting up machines %24 Assembling %24 Inspection %24 Total cost assigned 24 Marigold Inc. manufactures two products: car wheels and truck wheels, To determine the amount of overhead to assign to each product line, the controller, Robert Hermann, has developed the following information. Car Truck Estimated wheels produced 35,000 15,000 Direct labor hours per wheel Total estimated overhead costs for the two product lines are $768.000. Calculate overhead rate. (Round answer to 2 decimal places, eg 12.25) Overhead rate per direct labor hour Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs. Car wheels %24 Truck wheels %24 Hermann is not satished with the traditional method of allocating overhead because he beleves that most of the overhead costs relate to the truck wheels product line because of its complexity. He therefore develops the following three activity cost popls and related cost drivers to better understand these costs. Estimated Use of Estimated Overhead Activity Cost Pools Cost Drivers Costs Setting up machines 1,000 setups $240,000 Assembling 80,000 labor hours 240,000 Inspection 1,200 Inspections 288,000 Compute the activity-based overhead rates for these three cost pools. Overhead Rates Setting up machines %24 Assembling Inspection Compute the cost that is assigned to the car wheels and truck wheels product lines using an activity-based costing system, given the following information. Estimated Use of Cost Drivers per Product Car Truck Number of setups 200 800 Direct labor hours 35,000 45,000 Number of inspections 100 1,100 Car Wheels Truck Wheels Setting up machines %24 Assembling %24 Inspection %24 Total cost assigned 24 Marigold Inc. manufactures two products: car wheels and truck wheels, To determine the amount of overhead to assign to each product line, the controller, Robert Hermann, has developed the following information. Car Truck Estimated wheels produced 35,000 15,000 Direct labor hours per wheel Total estimated overhead costs for the two product lines are $768.000. Calculate overhead rate. (Round answer to 2 decimal places, eg 12.25) Overhead rate per direct labor hour Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs. Car wheels %24 Truck wheels %24 Hermann is not satished with the traditional method of allocating overhead because he beleves that most of the overhead costs relate to the truck wheels product line because of its complexity. He therefore develops the following three activity cost popls and related cost drivers to better understand these costs. Estimated Use of Estimated Overhead Activity Cost Pools Cost Drivers Costs Setting up machines 1,000 setups $240,000 Assembling 80,000 labor hours 240,000 Inspection 1,200 Inspections 288,000 Compute the activity-based overhead rates for these three cost pools. Overhead Rates Setting up machines %24 Assembling Inspection Compute the cost that is assigned to the car wheels and truck wheels product lines using an activity-based costing system, given the following information. Estimated Use of Cost Drivers per Product Car Truck Number of setups 200 800 Direct labor hours 35,000 45,000 Number of inspections 100 1,100 Car Wheels Truck Wheels Setting up machines %24 Assembling %24 Inspection %24 Total cost assigned 24 Marigold Inc. manufactures two products: car wheels and truck wheels, To determine the amount of overhead to assign to each product line, the controller, Robert Hermann, has developed the following information. Car Truck Estimated wheels produced 35,000 15,000 Direct labor hours per wheel Total estimated overhead costs for the two product lines are $768.000. Calculate overhead rate. (Round answer to 2 decimal places, eg 12.25) Overhead rate per direct labor hour Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs. Car wheels %24 Truck wheels %24 Hermann is not satished with the traditional method of allocating overhead because he beleves that most of the overhead costs relate to the truck wheels product line because of its complexity. He therefore develops the following three activity cost popls and related cost drivers to better understand these costs. Estimated Use of Estimated Overhead Activity Cost Pools Cost Drivers Costs Setting up machines 1,000 setups $240,000 Assembling 80,000 labor hours 240,000 Inspection 1,200 Inspections 288,000 Compute the activity-based overhead rates for these three cost pools. Overhead Rates Setting up machines %24 Assembling Inspection Compute the cost that is assigned to the car wheels and truck wheels product lines using an activity-based costing system, given the following information. Estimated Use of Cost Drivers per Product Car Truck Number of setups 200 800 Direct labor hours 35,000 45,000 Number of inspections 100 1,100 Car Wheels Truck Wheels Setting up machines %24 Assembling %24 Inspection %24 Total cost assigned 24 Marigold Inc. manufactures two products: car wheels and truck wheels, To determine the amount of overhead to assign to each product line, the controller, Robert Hermann, has developed the following information. Car Truck Estimated wheels produced 35,000 15,000 Direct labor hours per wheel Total estimated overhead costs for the two product lines are $768.000. Calculate overhead rate. (Round answer to 2 decimal places, eg 12.25) Overhead rate per direct labor hour Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs. Car wheels %24 Truck wheels %24 Hermann is not satished with the traditional method of allocating overhead because he beleves that most of the overhead costs relate to the truck wheels product line because of its complexity. He therefore develops the following three activity cost popls and related cost drivers to better understand these costs. Estimated Use of Estimated Overhead Activity Cost Pools Cost Drivers Costs Setting up machines 1,000 setups $240,000 Assembling 80,000 labor hours 240,000 Inspection 1,200 Inspections 288,000 Compute the activity-based overhead rates for these three cost pools. Overhead Rates Setting up machines %24 Assembling Inspection Compute the cost that is assigned to the car wheels and truck wheels product lines using an activity-based costing system, given the following information. Estimated Use of Cost Drivers per Product Car Truck Number of setups 200 800 Direct labor hours 35,000 45,000 Number of inspections 100 1,100 Car Wheels Truck Wheels Setting up machines %24 Assembling %24 Inspection %24 Total cost assigned 24
Expert Answer:
Answer rating: 100% (QA)
Car Truck Total Tota direct labor hrs required 35000 45000 80000 Overhead rate Overhead rate Overhe... View the full answer
Related Book For
Accounting Tools for business decision making
ISBN: 978-0470095461
4th Edition
Authors: kimmel, weygandt, kieso
Posted Date:
Students also viewed these accounting questions
-
To determine the amount of temporary hearing loss loud music can cause in humans, researchers studied a group of 20 adult females who were exposed to 110-dB music for 60 minutes. Eleven of the 20...
-
For each of the following cases, determine the amount of capital gain or loss to report in each year (after taking into account any applicable carry backs) and the capital loss carry forward to 2014,...
-
For each of the following situations, determine the amount of Gross Income to be included by the taxpayer. Situation 1 April received the following items in 2014 Salary...
-
Consider X[k] be the N-point DFT of an N-point sequence x[n]. (20 %) x [n] = {1, -2, 1, 3} x [n] = {0, 2, -1,0,0,4} (a) Determine the linear convolution x [n] * x [n] (5%) (b) Determine the...
-
By the end of its first year of operations, Previts Corporation has credit sales of $ 750,000 and accounts receivable of $ 350,000. Given its the first year of operations Previts management is unsure...
-
(a) By Chebychev's Theorem, at least how many students in a class of 200 would score within the range 2 ? (b) By the Empirical Rule, how many students in a class of 200 would score within the range...
-
How is the average rate of return computed for capital investment analysis, assuming that the effect of straight-line depreciation on the amount of the investment is considered?
-
Along-distance telephone company is trying to determine the optimal pricing structure for its daytime and evening long-distance calling rates. It estimates the demand for phone lines as follows:...
-
Assessment of physical and technical safeguards in place to protect health information from any type of threat Evaluation criteria for the assessment should include the following: Initial phase...
-
The horizontal pipe shown in Fig. 14.45 has a cross-sectional area of 40.0 cm3 at the wider portions and 10.0 cm2 at the constriction. Water is Hawing in the pipe, and the discharge from the pipe is...
-
Turkle poses a rhetorical question: "Some tell me that conversation seems like 'hard work,' with many invitations, often treacherous, to imperfection, loss of control, and boredom. Why are these...
-
What are the primary sources of an internal auditor's independence as identified in the Institute of Internal Auditors' Statement of Responsibilities of Internal Auditorsl
-
Following are selected questions from an internal control questionnaire about a companys fixed asset records, additions, disposals, retirements, and depreciation functions. A yes response would...
-
Cite several significant events in the development of contemporary internal auditing in the U.S.
-
You have been assigned to audit the fixed assets of the Johnson Corp., a manufacturer of janitorial supplies. The company maintains a detailed property ledger for all fixed assets. You prepare an...
-
Identify the general and specific laws and regulations addressed in the Single Audit Act Amendment and OMB Circular A-128, "Audits of States, Local Governments, and Non-profit Organizations."
-
The unit of physical measure associated with the standard deviation is the same as unit of data. When calculating variance, the unit is squared. When data is in inches, variance is in inches squared....
-
Find a polar equation for the curve represented by the given Cartesian equation. 4y 2 = x
-
Crown Turf manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and contribution margin per unit are as follows. Crown Turf has fixed costs of $4,600,000. Instructions Compute the...
-
How is the cost for a plant asset measured in a cash transaction? In a noncash transaction?
-
Three dates associated with Leon Companys cash dividend are May 1, May 15, and May 31. Discuss the significance of each date and give the entry at each date.
-
Assets are defined as economic resources owned by a business and expected to benefit future business operations. By this definition, the gasoline in the tank of a business automobile, unused printer...
-
In its simplest form, an account has only three elements or basic parts. What are these three elements?
-
What happens to the income taxes expense of an unprofitable company?
Study smarter with the SolutionInn App