Question 8 of 9 -/1,5 Lisa works for a company that makes and sells vases, and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 8 of 9 -/1,5 Lisa works for a company that makes and sells vases, and she just completed the preliminary gross margin analysis related to the recently completed fiscal year. She followed past practice and allocated MOH costs using a plant-wide rate based on DL hours. The company makes two varieties of vases: Sturdy and Delicate. Lisa wasn't convinced that using a single plant-wide rate was the best way to go, So she divided the company's MOH costs into three categories according to common descriptions noted in the accounting system: molding (driven by DL hours), polishing (driven by machine hours), and packaging (driven by packaging hours). She gathered the following information to assist in her analysis. Sturdy Delicate Sales revenue $102.000 $63,750 Direct material costs $18,800 $6,200 Direct labor costs $11.100 $11.100 Units produced 2.000 1,250 Direct labor hours 1,000 1,000 Machine hours 1,900 3,000 Packaging hours 900 2,100 Activity Total Cost Molding $7,400 Polishing 24,500 Packaging 9,900 Question 8 of 9 -/1,5 (a) Caloulate the single plant wide rate that Lisa must have calculated and then allocate MOH costs to the two products using that rate, (Round plant-wide rote to 2 decimal places, es 15.25) Plant wide rate /DL hour Sturdy Delicate Applied MOH Determine the total product cost per unit for each type of vase under this approach (Round answers to 2 decimal places, es 15.25) Sturdy Delicate Product costunit eTextbook and Media Sve for Laer Attempts unlimited Sutmit Aner Question 8 of 9 -/1,5 Lisa works for a company that makes and sells vases, and she just completed the preliminary gross margin analysis related to the recently completed fiscal year. She followed past practice and allocated MOH costs using a plant-wide rate based on DL hours. The company makes two varieties of vases: Sturdy and Delicate. Lisa wasn't convinced that using a single plant-wide rate was the best way to go, So she divided the company's MOH costs into three categories according to common descriptions noted in the accounting system: molding (driven by DL hours), polishing (driven by machine hours), and packaging (driven by packaging hours). She gathered the following information to assist in her analysis. Sturdy Delicate Sales revenue $102.000 $63,750 Direct material costs $18,800 $6,200 Direct labor costs $11.100 $11.100 Units produced 2.000 1,250 Direct labor hours 1,000 1,000 Machine hours 1,900 3,000 Packaging hours 900 2,100 Activity Total Cost Molding $7,400 Polishing 24,500 Packaging 9,900 Question 8 of 9 -/1,5 (a) Caloulate the single plant wide rate that Lisa must have calculated and then allocate MOH costs to the two products using that rate, (Round plant-wide rote to 2 decimal places, es 15.25) Plant wide rate /DL hour Sturdy Delicate Applied MOH Determine the total product cost per unit for each type of vase under this approach (Round answers to 2 decimal places, es 15.25) Sturdy Delicate Product costunit eTextbook and Media Sve for Laer Attempts unlimited Sutmit Aner
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
To finance a new product line, a company that makes high-temperature ball bearings borrowed$1.8 million at 10% per year interest. If the company repaid the loan in a lump sum amount after 2 years,...
-
A company that makes toaster ovens has done extensive testing on the accuracy of its temperature setting mechanism. For a previous toaster model of this company, the standard deviation of the...
-
Anaire AC Ltd is a company that makes and sells motor cycles, and was set up in 2008 by millionaire and environmental campaigner Mr. Alyas. Mr. Alyas is also one of the directors. The articles of the...
-
In an effort to check the quality of their cell phones, a manufacturing manager decides to take a random sample of 10 cell phones from yesterdays production run, which produced cell phones with...
-
Multiple Choice Questions The following questions deal with independence of auditors. Choose the best response. a. The operational auditor's independence is most likely to be compromised when the...
-
The weights of ripe watermelons grown at Mr. Smiths farm are normally distributed with a standard deviation of 2.8 lb. Find the mean weight of Mr. Smiths ripe watermelons if only 3% weigh less than...
-
An obligation that will not be satisfied within one year. True/False
-
Hatcher Enterprises uses a chemical called Rbase in production operations at five divisions. Only six suppliers of Rbase meet Hatchers quality control standards. All six suppliers can produce Rbase...
-
On January 1 , 2 0 2 4 , Fast Delivery Service purchased a truck at a cost of $ 7 5 , 0 0 0 . Before placing the truck in service, Fast spent $ 2 , 2 0 0 painting it , $ 8 0 0 replacing tires, and $...
-
HQ Drugs is a distributor of pharmaceutical products. Its ABC system has five activities: Rick Flair, the controller of HQ Drugs, wants to use this ABC system to examine individual customer...
-
1.Condor Inc. has P2 million invested in T-bills yielding 8% per annum. This investment will satisfy the firm's need for funds during the coming year. It costs P50 to sell these bills. If Africa...
-
Read the full decision of the U.S. Supreme Court in Quill Corp. v. North Dakota, 504 U.S. 298, 112 S.Ct. 1904 (1992). A. Does the Courts decision imply that there is a different nexus standard for...
-
If we are the seller, why do we care about the buyers tax consequences? A. Because we are nice and want to be fair B. If we structure a deal that saves them taxes, they may pass on some of the tax...
-
How can sales taxes be avoided in an M&A transaction? A. Purchaser may be able to avoid tax if transaction qualifies under casual sales rules B. Purchaser may be able to avoid tax if transaction...
-
What industries typically have the higher ratesand which the lower?
-
In a taxable asset acquisition, which of the below is true with regard to the federal treatment? A. For the gain or loss that is recognized on a sale, its character is determined by type of asset B....
-
Customers arrive at Rich? Dunn's Styling Shop at a rate of 3 per? hour, distributed in a Poisson fashion. Service times follow a negative exponential? distribution, and Rich can perform an avera
-
In the series connection below, what are the respective power consumptions of R, R2, and R3? R R www 4 V=6V P1-3 W; P2=3W; and P3= 3 W OP10.5 W; P2-1 W; and P3= 1.5 W P1=1.5 W; P2=1 W; and P3= 0.5 W...
-
A high school history teacher gives a 50-question multiple-choice examination in which each question has four choices. The scoring includes a penalty for guessing. Each correct answer is worth 1...
-
Using the population formulas, calculate the mean, variance, and standard deviation for the following grouped data. 8-10 11-13 14-16 3 2-4 5-7 5 14
-
The following table gives the standard deductions and personal exemptions for persons filing with single status on their 2011 state income taxes in a random sample of 9 states. Calculate the mean and...
-
Application of materials handling costs A manufacturing company budgets the follow- ing costs for its materials handling operations: The company estimates that during the coming year, the materials...
-
Journal entries for payroll and payroll costs Arbocodiel Company employs five office employees whose monthly pay is as follows: In addition to the above salaries, Arnold earned a $300 bonus and...
-
Payroll and payroll costs Following are the August payroll data for Sabul Company: The FICA tax rate on employees and employers is 7 percent of pay. Workers' compensation is .06 percent. Only $11,000...
Study smarter with the SolutionInn App