1 Cost Classification Wollogong Group Ltd. of New South Wales, Australia, acquired its factory building about 10 years ago. For several years, the company has rented out a small annex attached to the rear of the building. The company has received a rental income of $30,000 per year on this space. The renter's lease will expire soon, and rather than renewing the lease, the company has decided to use the space itself to manufacture a new product. Direct materials cost for the new product will total $80 per unit. To have a place to store finished units of product, the company will rent a small warehouse nearby. The rental cost will be $500 per month. In addition, the company must rent equipment for use in producing the new product; the rental cost will be $4,000 per month. Workers will be hired to manufacture the new product, with direct labor cost amounting to $60 per unit. The space in the annex will continue to be depreciated on a straight-line basis, as in prior years. This depreciation is $8,000 per year. Advertising costs for the new product will total $50,000 per year. A supervisor will be hired to oversee production; her salary will be $1,500 per month. Electricity for operating machines will be $1.20 pe Period Product Cost To provide funds to pur Name (Selling and of the Variable Fixed Direct Direct Manufacturing Administrative) Opportunity Sunk idate some temporary i Cost Cost Cost Materials Labor Overhead Cost year. Required: Prepare an answer sheet with the following column headings: Cost Cost 100 per Sample EXERCISE Computing Predetermined Overhead Rates and Job Custs My Computea de casting system with a plant wide overhead rate based on machines. At the beginning of the year, the company made the following estimates Machine opportunated produto Feed manufacturing 500.000 Vai maling 300 Required: 1. Compute the predetermined overhead tate 2. During the year. Jet 400 was started and completed. The following informatie was wilable with Tespect to this job Direct materialet Die 1210 Machim Compute the total manufacturing costsigned to Job 00 3. During the year, the company workel total of 146,000 machines and currectual manufacturing overhead costs of S1,350,000. What is the amount of deplodeerapplied overhead for the year this amount were closely Csods sold would the jemal entry increase or decree net operating income mated wat wall 300.000 Sample The redener fermenting Etreda Todd 2. Tim Deret Manufacturing coed. 2. Computing under ledet Adu During the 17 1 Cost Classification . Wollogong Group Lid of New South Wales, Australia, acquired its factory building about 10 years ago. For several years, the company has tented out a small ansattached to the rear of the building. The company has received a rental income of $30.000 per year on this space. The renter's lease will expire soon, and rather than renewing the lease, the company has decided to use the space itself to manufacture a new product. Direct materials cost for the new product will total S80 per unit. To have a place to store finished units of product the company will rent a small warehouse nearby. The rental cost will be $500 per month. In addition, the company mest rent cquipment for use in producing the new product the retail cost will be $4,000 per month Workers will be hired to manufacture the new product, with direct labor cost amounting to $60 per unit. The space in the annex will continue to be depreciated on a straight-line basis, as in prior years. This depreciation is $8,000 per year. Advertising costs for the new product will total 550,000 per year. A supervisor will be hired to oversee production, her salary will be $1,500 per month Electricity for operating machines will be 51 20 pc Predator To provide funds to put od Directed and are temporary Goal Com Moral C year Required: Prepare an answer sheet with the following column headings date some C100 per Expert Q&A Done Moody Corporation uses a job-order costing system with a plantwide overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine- hours required to support estimated production 153,000 Total estimated manufacturing overhead cost $ 1,369,350 Required: 1. Compute the predetermined overhead rate. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Moody Corporation uses a job- order costing system with a plantwide overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine-hours required to support estimated production 153,000 Total estimated manufacturing overhead cost $ 1,369,350 Required: 1. Compute the predetermined overhead rate. (Do not round intermediate calculations. Round your answer to 2 decimal places.) turcae *** Cost Classification (L012,LO-3, 6014, 2015) 130.000.000, con www products per un totoo.com who for the 4000 there and the rest 80.000 Are 30 we 120 per The cost of cow to con The To $1.000 per www.beatport hong.com who wa West masing condicate wherberg ng it. The second your new de whether for y corto you as an opport 1 Cost Classification Wollogong Group Ltd. of New South Wales, Australia, acquired its factory building about 10 years ago. For several years, the company has rented out a small annex attached to the rear of the building. The company has received a rental income of $30,000 per year on this space. The renter's lease will expire soon, and rather than renewing the lease, the company has decided to use the space itself to manufacture a new product Direct materials cost for the new product will total $80 per unit to have a place to store finished units of product, the company will rent a small warehouse nearby. The rental cost will be $500 per month. In addition, the company must rent equipment for use in producing the new product, the rental cost will be $4,000 per month. Workers will be hired to manufacture the new product, with direct labor cost amounting to $60 per unit. The space in the annex will continue to be depreciated on a straight-line basis, as in prior years. This depreciation is $8,000 per year Advertising costs for the new product will total $50,000 per year A Supervisor will be hired to oversee production; her salary will be $1,500 per month Electricity for operating machines will be $1.20 per unit. Costs of shipping the new product to customers will be $9 per unit. To provide funds to purchase materials, meet payrolls, and so forth, the company will have to liquidate some temporary investments. These investments are presently yielding a retum of about $3,000 per year Required Prepare an answer sheet with the following column headings Period Name Product Cost (Selling and of the Variable Fixed Direct Direct Manufacturing Administrative) Opportunity Sunik Cost Coet Cost Materiale Labor Overhead Cost Cost Cost List the different costs associated with the new product decision down the extreme left column (under Name of the Cost). Then place an X under each heading that helps to describe the type of cost involved. There may be X's under several column headings for a single cost. (For example, a cost may be a fixed cost, a period cost and a sunk cost, you would place an X under each of these column headings opposite the cost)