Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

# 2 and 3 please explain Furniture Plant: nenartmental ilata (hisineteri). After some discussion with the furniture plant controller, Gisela decided to use machine hours

image text in transcribedimage text in transcribed

# 2 and 3 please explain

Furniture Plant: nenartmental ilata (hisineteri). After some discussion with the furniture plant controller, Gisela decided to use machine hours to calculate the overhead rate for the Cutting Department and direct labor hours for the Assembly Department rate (the Cutting Department was more automated than the Assembly Department). As part of her report, she wanted to compare the effects of plantwide rates and departmental rates on the cost of jobs. She wanted to know if overhead costing could be the source of the pricing problems the company was experiencing. To assess the effect of the different overhead assignment procedures, Gisela decided to examine two prospective jobs. One job, Job A500, could produce 500 sofas, using a frequently requested style and Fabric FB70. Bids on this type of job were being lost more frequently to competitors. The second job, Job B75, would produce 75 specially designed recliners. This job involved a new design and was more difficult for the workers to build. It involved some special cutting requirements and an unfamiliar assembly. Recently, the company seemed to be winning more bids on jobs of this type. To compute the costs of the two jobs, Gisela assembled the following information on the two jobs: a. Using the weighted average method, complete the following information regarding the Weaving and Pattern production process: i. Physical flow schedule (measured in yards) ii. Materials Conversion Costs iii. Unit cost iv. Cost of goods transferred out b. To convert the output of the Weaving and Pattern Department to the output of the Coloring and Bolting Department, yards transferred is by c. Using the weighted average method, complete the following for the Coloring and Bolting Department: i. Physical flow schedule (measured in bolts)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

7th Edition

1118725786, 978-1118725788

More Books

Students also viewed these Accounting questions

Question

Dont smell (i.e., too much perfume/cologne).

Answered: 1 week ago

Question

6.2 Explain the recruitment process.

Answered: 1 week ago