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From the following budgeted data, calculate the budgeted indirect cost rate that would be used in a normal costing system. Actual results for the year were the following: Total direct labor hours 6,000 Total indirect labor hours 1,500 Direct costs $40,000 Total indirect labor related costs $66,000 Total indirect nonlabor related costs 575,000 The budgeted indirect cost rate is: Answer:Fact pattern: Gemini Inc., has two service departments (the Systems Department and the Facilities Department) that provide support to the company's three production departments (Machining Department, Assembly Department, and Finishing Department). The overhead costs of the Systems Department are allocated to other departments on the basis of computer usage hours. The overhead costs of the Facilities Department are allocated based on square feet occupied (in thousands). Other information pertaining to Logo is as follows: Computer Square Feet Department Overhead Usage Hours Occupied Systems $ 375,000 75 3,500 Facilities 75,000 225 2,100 Machining 750,000 006 7,000 Assembly 1,031,250 300 1,050 Finishing 1,162,500 220 1,800 Total 1,720 15,450 Logo employs the direct method of allocating service department costs. The overhead of the Facilities Department would beallocated by dividing the overhead amount by Answer: How much of the Systems overhead would the Assembly Department receive? Answer:Consider the following information for Richardson Company for the prior year: The company produced 2,550 units and sold 2,500 units, both as budgeted. There were no beginning or ending work-in-process inventories and no beginning finished goods inventory. Budgeted and actual fixed costs were equal, all variable manufacturing costs were affected by production volume only, and all variable selling costs were affected by sales volume only. -Budgeted per unit revenues and costs were as follows: Per unit Sales price $100 Direct materials 9 Direct labor 24 Other variable manufacturing costs 11 Fixed selling costs 6 Variable selling costs 16 Fixed manufacturing costs 6 Fixed administrative costs The contribution margin earned by Richardson for the prior year was Answer:The headquarters of a national restaurant chain is trying to better understand the profitability of the Savannah location. Savannah's total assets are $2,700,000, consisting of $750,000 land, $1,575,000 buildings and equipment, and $375,000 intangibles. The net profit is $237,500, and the required rate of return is 15.0%. Savannah's return on investment (ROI) is: Answer: (round to nearest tenth of a percentage point)A merchandising company is considering a $750,000 upgrade to its retail and warehousing facilities that will allow the company to handle more products and attract more customers. The company anticipates that sales will increase by $375,000 and operating income will increase by $150,000 per year. If the company has a minimum required return on investment of 9.0%, what would be the residual income resulting from the upgrade? Answer:A first-in, first-out (FIFO) process cost system is used to account for the cost of producing a chemical compound. As part of production, Material B is added when the goods are 72%% complete. Beginning work-in-process inventory for the current month was 18,000 units, 90% complete. During the month, 63,000 units were started in process, and 58,500 of these units were completed. There were no lost or spoiled units. If the ending inventory was 67% complete, the total equivalent units for Material B for the month was: Answer:Areview of accounting records for last year disclosed the following selected information: Variable costs: Direct materials used 59,000 Direct labor 173,100 Manufacturing overhead 157,000 Selling costs 102,400 Fixed costs: Manufacturing overhead 270,000 Selling costs 115,000 Administrative costs 238,900 In addition, the company suffered a $21,700 uninsured factory fire loss during the year. What were the product costs and period costs for last year? Product PeriodA firm uses a process-costing system and inspects its goods at the end of manufacturing. The inspection as ofJune 30 revealed the following information for the month of June: Good units completed 25,000 Normal spoilage (units) 20 Abnormal spoilage (units) 1,500 Unit costs were: materials, $12.00 and conversion costs, $10.00. The number of units that the firm would transfer to its finished goods inventory and the related cost of these units are: Number of Units CostZeta Company is preparing its annual profit plan. As part of its analysis of the profitability of individual products, the controller estimates the amount of overhead that should beallocated to the individual product lines from the information given in the next column: Wall Mirrors Specialty Windows Units produced 100 29 Material moves per product line 3 B Direct labor hours per unit 6 A4 Budgeted materials handling costs $30,000 Under a costing system that allocates overhead on the basis of direct labor hours, Zeta's materials handling costs allocated to one unit of wall mirrors would be Answer: Under activity-based costing (ABC) using material moves per product line, Zeta's materials handling costs allocated to one unit of wall mirrors would be Answer:A company has determined the following standards for production of its dining tables: Square feet of oak per table: 12 Price per square foot of oak: $2.75 Number of screws per table: 30 Price per screw: 50.01 The company expects a 25% increase in the cost of oak and a 5% decrease in the cost of screws. What is the new standard cost per table? Answer:A company uses cost-volume-profit analysis to evaluate a new product. The total fixed costs of production per year are $135,000. The unit variable cost is $34. Calculate the breakeven units at the following selling price: Selling price: 89 Breakeven units:An entity has the following cost components for 100,000 units of product for the year: Direct Materials 225,000 Direct Labor 125,000 Manufacturing Overhead 200,000 Selling and Administrative expense 150,000 All costs are variable except for 85,000 of manufacturing overhead and 75,000 of selling and administrative expenses. The total costs to produce and sell 110,000 units for the year are: Answer:A company recorded the following production costs during the previous two-week period: Week 1 Week 2 Direct labor costs 17,000 20,500 Other manufacturing costs 25,000 30,000 Units produced 6,000 7,500 Assuming both weeks fall in the same relevant range, what was the total fixed cost during Week 1? Answer:A company produces a product that contains 16 ounces of materials in each unit of finished goods. During the production process, 4%% of the materials evaporate. The company pays its suppliers $2.25 per ounce; the cost to ship the material to the company averages $0.24 per ounce. The standard dollar amount of raw materials contained in one unit of finished goods is Answer: (round to nearest cents)Levittown Company employs a process cost system for its manufacturing operations. All direct materials are added at the beginning of the process and conversion costs are added proportionately. Levittown's production quantity schedule for November is reproduced in the next column. Work-in-process November 1 (60% complete as to conversion costs) 1,225 Units started during November 5,225 Total units to account for 6,450 Units completed and transferred out from beginning inventory 1,225 Units started and completed during November 3,225 Work-in-process on November 30 (20% complete as to conversion costs) 2,000 Total units accounted for 6.450 Using the FIFO method, Levittown's equivalent units for direct materials for November are Answer: Using the weighted average method, Levittown's equivalent units for direct materials for November are Answer:A manufacturer manufactures two types of engineering diagnostic equipment used in construction. The two products are based on different technologies, x-ray and ultrasound, but are manufactured in the same factory. The manufacturer has computed the manufacturing cost of the x-ray and ultrasound products by adding together direct materials, direct labor, and overhead cost applied based on the number of direct labor hours. The factory has three overhead departments that support the single production line that makes both products. Budgeted overhead spending for the departments is as follows: Department Engineering Material Handling Setup Total 6,000 7,500 5,000 19,500 Budgeted manufacturing activities and costs for the period are as follows: Activity X-Ray Ultrasound Units produced and sold 50 46 Direct materials used $75,000 000'585 Direct labor hours used 30 60 Direct labor cost $50,000 $175,000 Number of parts used 400 500 Number of engineering changes 3 Number of product setups 2 10 The budgeted cost to manufacture one ultrasound machine using the activity-based costing method is Answer: (round to nearest dollar)A corporation manufactures a specialty line of dresses using a job-order costing system. During January, the following costs were incurred in completing job J-1: Direct labor 40,000 Direct materials 48,000 Administrative costs 4,000 Selling costs 32,000 Factory overhead was applied at the rate of $24 per direct labor hour, and job J-1 required 250 direct labor hours. If job J-1 resulted in 5,000 good dresses, the cost of goods sold per unit is: Answer: (round to nearest cent)A cost accountant is developing departmental factory overhead application rates for the company's tooling and fabricating departments. The budgeted overhead for each department and the data for one job are shown below. Department: Tooling Fabricating Supplies 952 224 Supervisor's salaries 1,680 2,240 Indirect labor 1,344 5,466 Depreciation 1,120 6,160 Repairs 4,564 3,965 Total budgeted overhead 9,660 18,055 Total direct labor hours 515 694 Direct labor hours on Job #231 12 10 Using the departmental overhead application rates, total overhead applied to Job #231 in the Tooling and Fabricating Departments will be Answer: (round to nearest whole number)A cracker manufacturer has the following unit costs for the month of June: Variable Variable Fixed Fixed manufacturing marketing manufacturing marketing cost cost cost cost $15.50 $15.10 $13.70 514.85 A total of 150,000 units were manufactured during June, 2,000 of which remain in ending inventory. The manufacturer uses the first-in, first-out (FIFO) inventory method, and the 2,000 units are the only finished goods inventory at month end. Using the full absorption costing method, the manufacturer's finished goods inventory value would be: Answer:The static budget for the month of May was for 3,000 units with direct materials at $30 per unit. Direct labor was budgeted at 30 minutes per unit for a total of $18,000. Actual output for the month was 2,950 units with $88,500 in direct materials and $19,300 in direct labor expense. The direct labor standard of 30 minutes was maintained throughout the month. Determine whether a favorable or unfavorable variance occurred and what caused it. Answer: Favorable/Unfavorable Answer: Amount