Question
1) The MI Alarm company is in the business of selling and installing home alarm systems in residential homes in Michigan. The cost for MI
1) The MI Alarm company is in the business of selling and installing home alarm systems in residential homes in Michigan. The cost for MI Alarm to purchase the material to do an install is $31.17 per install. The labor involved on an install averages $168.19. Other miscellaneous costs are $54.65 per install. MI Alarm is trying to generate $40.67 of profit for every Alarm product they sell. Using a cost based pricing approach, how much should MI Alarm charge customers for an alarm install? Calculate your answer to two decimal places.
2) The Johny Pickles Brewing Company takes custom orders for seasonal brews and has two separate departments, brewing and packaging. The brewing department allocates overhead based on batches produced while the packaging department allocates overhead to orders based on machine hours worked in the department. The estimated overhead for the brewing department for the year is $19446 and the packaging department is estimated at $12974. It is estimated that the brewery will produce 312 batches during the year and will spend 1421 hours running the equipment to package those batches.
At the end of the year, it is determined that 313 batches were actually produced and 1351 hours were used to package the product. The overhead amounts actually incurred by the brewing and packaging departments were $19850 and $14386 respectively.
What is the predetermined overhead rate for the packaging department? Round your answer to two decimal places.
3) The Johny Pickles Brewing Company takes custom orders for seasonal brews and has two separate departments, brewing and packaging. The brewing department allocates overhead based on batches produced while the packaging department allocates overhead to orders based on machine hours worked in the department. The estimated overhead for the brewing department for the year is $18978 and the packaging department is estimated at $11019. It is estimated that the brewery will produce 344 batches during the year and will spend 1243 hours running the equipment to package those batches.
At the end of the year, it is determined that 276 batches were actually produced and 1235 were used to package the product. The overhead amounts actually incurred by the brewing and packaging departments were $22099 and $10366 respectively.
What was the total overhead allocated during the year? Round your answer to two decimal places.
4) The Johny Pickles Brewing Company takes custom orders for seasonal brews and has two separate departments, brewing and packaging. The brewing department allocates overhead based on batches produced while the packaging department allocates overhead to orders based on machine hours worked in the department. The estimated overhead for the brewing department for the year is $24984 and the packaging department is estimated at $11021. It is estimated that the brewery will produce 257 batches during the year and will spend 1072 hours running the equipment to package those batches.
At the end of the year, it is determined that 280 batches were actually produced and 1402 were used to package the product. The overhead amounts actually incurred by the brewing and packaging departments were $20675 and $11663 respectively.
What were the actual overhead costs for the year? Round your answer to the whole dollar.
5) The Johny Pickles Brewing Company takes custom orders for seasonal brews and has two separate departments, brewing and packaging. The brewing department allocates overhead based on batches produced while the packaging department allocates overhead to orders based on machine hours worked in the department. The estimated overhead for the brewing department for the year is $18532 and the packaging department is estimated at $14413. It is estimated that the brewery will produce 253 batches during the year and will spend 1393 hours running the equipment to package those batches.
At the end of the year, it is determined that 306 batches were actually produced and 1494 were used to package the product. The overhead amounts actually incurred by the brewing and packaging departments were $17664 and $12500 respectively.
What is the entry into the overhead account at the end of the year to balance the account? A credit would be entered as a negative and a debit as a positive. Round your answer to the whole dollar.
6) Hippity Hoppity Brew is a manufacturer of Small, Medium and Large size malting equipment for use in craft breweries across the United States and Canada. They are implementing an activity based cost (ABC) system and have compiled the following indirect cost information.
Cost Pool | Estimated Cost | Cost Driver | Est Total Cost Driver |
Equipment Maintenance | $58813 | Machine Hours | 1500 Hours |
Production Facility Costs | $84262 | Footprint (sqft) | 20000 Square Feet |
Order Processing Costs | $15261 | Num of Orders | 200 Orders |
Engineering Changes | $34678 | Num of Changes | 50 Changes |
Customer Relations | $18678 | Warranty Claims | 30 Claims |
During the period, the Medium sized equipment line at Hippity Hoppity Brew used 650 machine hours, used 6200 square feet of floor space, received 63 orders, experienced 13 engineering changes and had 8 warranty claims. $121058 of direct labor and $72300 of direct material were charged towards the Medium sized equipment line during the year.
Under the ABC system, how much indirect cost was charged to the Medium line during the year? round your answer to the whole dollar.
7) Hippity Hoppity Brew is a manufacturer of Small, Medium and Large size malting equipment for use in craft breweries across the United States and Canada. They are implementing an activity based cost (ABC) system and have compiled the following indirect cost information.
Cost Pool | Estimated Cost | Cost Driver | Est Total Cost Driver |
Equipment Maintenance | $56347 | Machine Hours | 1500 Hours |
Production Facility Costs | $83518 | Footprint (sqft) | 20000 Square Feet |
Order Processing Costs | $25299 | Num of Orders | 200 Orders |
Engineering Changes | $36122 | Num of Changes | 50 Changes |
Customer Relations | $27915 | Warranty Claims | 30 Claims |
During the period, the Medium sized equipment line at Hippity Hoppity Brew used 650 machine hours, used 6200 square feet of floor space, received 63 orders, experienced 13 engineering changes and had 8 warranty claims. $124560 of direct labor and $65776 of direct material were charged towards the Medium sized equipment line during the year.
Under the ABC system, how much total cost was charged to the Medium line during the year? round your answer to the whole dollar.
8) Sammy Skillet is hoping to make $3.51 on every gourmet breakfast bowl he sells at his recently opened restaurant. If his desired selling price is $7.73 per breakfast bowl, under the target pricing model, what are Sammy Skillet's target costs per breakfast bowl? Calculate your answer to two decimal places.
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