2 (Chapters 5.10) Beauville Furniture Corporation produces sofas, recliners, and lounge chairs, Beauville is located in a medium-sized community in the southeastern part of the United States. It is a major employer the community. In fact, the economic well-being of the community is tied very strongly to Beauville Beauville operates a swmill fabric plant, and a furniture plant in the same community The sawmill buys logs from independent producers. The sawmill then processes the logs into four grades of lumber: first and seconds, No. I common, No. 2 common, and No common. All costa incurred in the mill are common to the four grades of lumber. All four grades of lumber we used by the future plant. The will transfers everything it produces to the future plant, of the grades are trunderred at coul. Trucks are uned to move the lumber from the mill to the furniture plant. Although no outside sales, the mil could sell to external custome, and the selling nices of the four grades are known. The fabric plant is responsible for producing the fabric that is used by the furniture plant. To produce three totally different fatic identified by fahee ID codes F, F70, and respectively, the plant has three separate production operations-one for each fabric. Thus, production of all three fatnes occurs at the same time in different locations in the plant. Each fabric production operation has two processes the weaving and pattern process and the coloring and holting process. In the weaving and pattern process, yarn used to create yard fabric with different dem. In the next process, the fabric is dyed, cut into 25 yard sections, and wrapped around cardboard rods to form 25 yard bolts. The bolts are transported by for it to the future pour leceiving Department. All of the output of the fabric plant is used by the furniture plant to produce the sound chroccounting purposes, the fabrics transferred at cost to the future plant The furniture plant produces orders for customers on a special order basis. The customers specify the watey, style, Marx, lumbergrade, and pattern. Typically jobs are for (volving that 500 units). The plant has two production departments Cutting and Assembly. In the Department, there and wooden frame components are red and citoteronents purchased from external suppliers and are removed from starts as needed for sembly Nerthemed wooden components and finished for the entire they we moved to the Assembly Department. The Assembly Department takes the individual components and embles the sofos (or chas), Beauville Furniture has been in bases for over two decades and a good reputation. Howeven during the past few weapondering profits auf eininga increasingly lost even gresive bds) on the more popular models. Yet, the company ang bids on some of the more difficult to duce Lance there and in frustrated. He simply couldet understand how some of his compattors could sell for such low On a common sense units, tevile's his wenning 125 porno $12,500 per jo more than the winning bids (on average). Yet, on the more difficult items, Beads were running out 60 punt than the next sted. Gerne vee president of finance, was signed the task of preparing casts of the company's productions and wanted to the come we weer the company when west, and it was my costing more to produce furniture that was costing competitors Gisela prepared herself by reading recent literature on cost management and product costing and attending several conferences that explored the same mues. She then reviewed the conting procedures of the company's mill and two plants and did a preliminary assessment of their soundness. The production costs of the mill were common to all lumber grades and were we the physical units method, since the output and production costs were fairly uniform throughout the year, the milled an actual casting system. Athough we had no culty with actual conting she decided to explore the effects of using the sales value at split off method. Thus, cost and production data for the mill were gathered so that an analysis could be conducted. The two plants sed normal conting system. The fabric plant used process costing, and the furniture plant used job order conting. Both planted plantwide overheatre based on direct labor hours Based on her til review, she concluded that the costing procedures for the fabric plant were satisfactory.sentially, there was no evidence of product diversity. A statistical analysis revealed that shouts per of the variability in the plant's overhead cost could be explained by direct labor hours. Thus, the use of a plantwide overhead rate bred on direct labor hours seemed justified. What did concenter though, was the material waste that she observed in the plant. Maybe a standard cost system would be useful for increasing the overall cost efficiency of the plant. Consequently, as part of her report to Lance, she decided to indude a description of the fabric plant's costing procedures at least for one of the fabric types. She also decided to develop a standard cost sheet for the chose fabric. The furniture plant, however, was a more difficult matter Product diversity was present and could be causing some distortions in productos. Furthermore, Masalanalysis revealed that only about 40 percent of the variability in overhead cost was explained by the direct labor hours. She decided that aditional analysis was needed so that sound product cating method could be recommended. One possibility would be to increase the number of overhead rates. Thus, she decided to include departmental data so that the effect of moving to departmental des could be assessed. Finally, she also wanted to explore the possibility of converting the sawmill and fabric plant into profit centers and changing the custing transfer pricing policy With the cooperation of the cost accounting manager for the mill and each plant's controller, she gathered the ng data for last year Sawmills Joint manufacturing costs: $900,000 Quantity Produced Grade (board feet) Firsts and seconds 1,500,000 No. 1 common 3,000,000 Price at Split of (per 1,000 board foot) 5300 225 Quiz 2 (Chapters 5 - 10) Sawmill: Joint manufacturing costs: $900,000 Quantity Produced (board feet) Price at Split-Off (per 1,000 board foot) Grade Firsts and seconds 1,500,000 $300 No. 1 common 3,000,000 225 No. 2 common 1,875,000 140 No. 3 common 1,125,000 100 Total 7,500,000 > Fabric Plant: Budgeted overhead: $1,200,000 (50% fixed) Practical volume (direct labor hours): 120,000 hours Actual overhead: $1,150,000 (50% fixed) Actual hours worked: Weaving and Coloring and Pattern Bolting Grade Total Fabric FB60 20,000 12,000 32,000 Fabric FB70 28,000 14,000 42,000 44,000 Fabric FB80 26,000 18,000 Fabric FB60 20,000 12,000 32,000 Fabric FB70 14,000 28,000 26,000 42,000 44,000 Fabric FB80 18,000 Total 74,000 44,000 118,000 Departmental data on Fabric FB70 (actual costs and actual outcomes): Weaving and Coloring and Bolting Pattern Beginning inventories Units 20,000 400 Costs Transferred in 30 $100,000 $8,000 $80,000 $18,000 $22,000 $6,600 Materials Labor Overhead Current productions Units started $9,000 2 80,000 30,000 Units transferred out 3,200 Costs: Quiz 2 (Chapters 5 - 10) Costs Transferred in 50 7 30 40 Materials $320,000 582,000 Labor $209,000 599,400 Overhead 2 Percentage completion Beginning inventory 409 Ending inventory 50% Units are measured in yards for the Weaving and Potter Department and be for the Commandoting partNote: With the exception of the condition materials are added at the beginning of each proces. The cost of the rositively witched overhead Proposed standard cow sheet for at for the Coloring and sing Department Transferred materials (25 yards 510) $250.00 Other materials (100 unces $0.20) 20.00 Labor (3.1 hours) verhead hours 15) Vartotours 55) 15.50 Standard $325.00 24.00 15.50 aplers 5.10) Furniture Plants Departmental data (budgeted) Service Departments Receiving Maintenance Producing Departments General Factory Cutting Assembly $525.000 $750,000 $375,000 60,000 15.000 Overhead $450,000 $600,000 $300,000 Machine hours Receiving orders square feet 9,000 13.500 15.000 1,000 5,000 4,000 Director hours 10,000 200,000 50,000 After some dicon with the furniture plant controller, Chelseaded to us machine hours to calculate the overhead for the Cutting Department and direct for the Department at the Cutting Department was more automated than the Department of her the waited to compare the effects of plante de on the cost of you. She wanted to know if need costing contest of the main protes the com www To the effect of the different eventuairment produs, Celadeded to examine two prospective. One y, sob A500, cool produce som, sing only route style and Fabric F70. Bids on this type of job were being lot more recently competitors. The second job wounded in the ho de and was officult for the work to build it involved some specat cutting requirements and an ambiente type to compute the cost of the two obsessembled the following formation on the two o Job AVO Dumat F G Fabric TB70 10 bolts $350 Lure (No. 1 common) 20,000 board feet $0.12 $26,600 Other components Direct labor 400 urs $10 1,000 hours 0 15.25 Cutting Department Assembly Department Machiwtime Cutting Department Ambly Department 350 machine hours 50 machine hours Job 81750 Direct materials Fabric 70 26 yards o$350 Lumer (first and seconds) 2,200 board feet $0.12 Other components Direct labor Cutting Department 70 hours $10 Assenny Department 240 hours Machine Cutting Department Assembly Department 90 machine hours 15 machine hours Required: 1. Allocate the point manufacturing costs to each grade and calculate the cost per board foot for each grade using the following methods Roundunt cost awer to two decimal places (a) Physical units method of allocation Grades Allocation Unit Cost Firsts and seconds 180,000.00 0.12 No. 1 common 0.12 360,000.00 1,875,000.00 No. 2 common 0.12 No. 3 common 0.12 Total $ (b) Sales-value-at-split-off method: Grades Allocation Unit Cont Hists and seconds 270.000 O.IN NO. 1 como 465,000 0.14 No 2 common 0.00 Nu.com 67,500 0.06 No. 3 common 0.06 Totals 67,500 960,000 Which method should the mill use? Physical units method of allocation What is the effect on the cost of each proposed by the mill switches to the sales value of method tecton Job Aso the cost per board foot is increase thus cost increase by flect on Job 25 the cost per board foot decrease thus cont increase by 2. Calculate the plantwide overhead rate for the fabricant 10 per hour 3. Calculate the amount of under er overophed overhead for the fobe plant 30,000 evrapplied 4. Using the weighted average method, calote the cost per bot for fabric / 10 5. Assume that the weaving and pattern process is not a separate process for each fabric. Also, me that they used for each bieters gantly which would costing be appropriate for the wearing and pattern procre What coating approach would you recommend Describe your machine Process costing would not berri Operation conting is the reach that should used. Tical conversion costs we wed no procedere comer en rate. Thus, we would have a hybrid of job order and pricing procedures 6. In the Coloring and Bolting Department, 400,000 cunces of other materials were and to produce the output pending the standardowe the followed variances for the Coloring and Bolting Drement No. 3 common 0.06 Totals 67,500 960,000 Which method should the mill use? Physical units method of allocation What is the effect on the cost of each proposed by the mill switches to the sales value of method tecton Job Aso the cost per board foot is increase thus cost increase by flect on Job 25 the cost per board foot decrease thus cont increase by 2. Calculate the plantwide overhead rate for the fabricant 10 per hour 3. Calculate the amount of under er overophed overhead for the fobe plant 30,000 evrapplied 4. Using the weighted average method, calote the cost per bot for fabric / 10 5. Assume that the weaving and pattern process is not a separate process for each fabric. Also, me that they used for each bieters gantly which would costing be appropriate for the wearing and pattern procre What coating approach would you recommend Describe your machine Process costing would not berri Operation conting is the reach that should used. Tical conversion costs we wed no procedere comer en rate. Thus, we would have a hybrid of job order and pricing procedures 6. In the Coloring and Bolting Department, 400,000 cunces of other materials were and to produce the output pending the standardowe the followed variances for the Coloring and Bolting Drement Quiz 2 (Chapters 5.10) 6. In the Coloring and Bolting Department, 400,000 unces of other materials were ud to produce the of the period thing the red standard cohet, cute the follow varices for the Coloring and Boring Department Enter wil wounts as positivember a. Materials price variance for other materials only) Favorable b. Materials usage variance for other materials only) Favorable Laborate variance favorable d. Laborecency variance Favorable In calculating the variances, which method did you use to compute the actual tout of the pred-For weighted well. FIFO must be used because it measures output of the period. Standard como content contestar con need standard cost can be used to value goods transferred out and WE Thus, we are the heat and the Weight Are 7. Assume that the standard hours allowed for the cultural output of the plantare 115,000. Ce the followers 575,000 favorable Enter all mounts pember a ned overhead spending bied overhead volume variance Variable overhead spending van d. Vorberedency 590,000 15,000 575,000 Have Favorable 3. Suppose that the fabricant has 500 bolt of 17 ging het ons wear. The current years to have come in the good to The fabricant price of $400 per bolt ca procentos 2000 years on 2000 internal to Deauviller. If the fabricant were devoted at a pret carte, then travel what matches B. Suppose that the fabric plant has soo bolts of 670 in beginning finished goods inventory. The current year plans to have 1,000 bolts of 20 in shed gode story the mil of the yox The fabric has an emal market price of $100 per bot. If the fabric plant is set up as a profit center, it could sell 3,000 bolts per year to outside ones and 2,000 bolts per year internally to Beauville's furniture plant. If the fabric plant were designated as a profit center, the plant would transfer all goods internally at market printing the proposed standart content needed) and any other relevant data, prepare the following for Fabric F70 a. Sales budget 2,000,000 b. Production budget 5,500 c. Director budget 136,400 d. Cost of goods sold budget 1,629,000 5. Calculate the following averad vates for the future plant (1) plantwide rate wartmental them with your answers to two decimal places Rate Pantider per per MH Assembly department D D 10. For each of the overad rutes compte que entent for Jobs A500 your new to two domics Unitsid Partides Sob A500 575 10. For each of the overhead rates Computed in rement, Gioisturit bid prices forstand 675 Round your answers to the Geo Unit Bid Plantwide rates Job A500 Job 875 Departmental rates, Job A500 Job 375 Assume that the company's aggressive bidding policy is unit cost plus 50 percent. Did departmental overhead races have my effect on Deville's winning or using de? What recommendation would you make? Explain. Round your answers to two decimal places. Departmental rates increase the bid for the more easily produced Job A500 and increase the bed for the more easily produce Job 7. This appears to be in the direction. We would recommend using the plantwide rate Now, adjust the costs and bids for departmental rate bids using the proposed standard costs for the Coloring and Bolting Department of this make a difference? What does this you und your answers to two decimal places. Enter all amounts as positive numbers Standard cost would increase the cost of Fabric FB 70 for both jobs. For Job ASOO, e costs will increase hy And for lo met wilders by Thus, the bid for Job A500 will increase by Similarly, the bid for jobs will increase ty This tets us that we can only induding was in tur bid by using standard costs and improve our bidding. It also tells us that we had to focus on becoming more 11. Suppose that the for plant is up as a profit center, Bolts of Fabric Foil for $400 for can be bought fw 100 from outside the plants the future both capacity. Assume that Job A500 is a special order. The fabric and mature pants have sufficiente proty to satisfy the demands ASD What is the member for belt of FB707 losind your answers to two decimal places QUIZ 2 chapters 10) Job 125 Assume that the company's resive bidding policy is un cost plus 50 percent. Od departmental evad ruters have reflect on the ville weg orng bids What recommendation would you make? Explain. Round your owwer to two decimal places Department is increase the bed for the more easily produced Job A500 and increase the bed for the more easily produce Job 25. Top to be in the right direction. We would recommend using the plant wide rate Now, adjust the costs and bids for departmental rate bide using the proposed standard costs for the Command Boting Department of this make a difference? What does this all you? Hound your answers to two decimal place inte all amounts s poutie numbers Standard cou would increase the cost of POZO for both jobs for lob ASOO, costs will And for os, me costs wil deerate Thus, the land for Jolo A500 will increase by Similarly, the for jobs will increane by This tells that we can including wat in our bid trying standard costs and improve our hidd It also tells that we need to focus on me efficient 11. Suppose that the fabric plant is set up as a procent. Bots of rain Fosfor $400 (or can be bought for 500 from outside suppliers). The fabric plant and the future at both have Git Awume that Jub ASO special order. The one and future that exempty to satisfy the demands of Job A500. What is the member of 707 Round your answers to two decimal places of the macam transfer $400, Wy how much do the fore profits crease? If the two protette nettster print that is the new SA 2 (Chapters 5.10) Beauville Furniture Corporation produces sofas, recliners, and lounge chairs, Beauville is located in a medium-sized community in the southeastern part of the United States. It is a major employer the community. In fact, the economic well-being of the community is tied very strongly to Beauville Beauville operates a swmill fabric plant, and a furniture plant in the same community The sawmill buys logs from independent producers. The sawmill then processes the logs into four grades of lumber: first and seconds, No. I common, No. 2 common, and No common. All costa incurred in the mill are common to the four grades of lumber. All four grades of lumber we used by the future plant. The will transfers everything it produces to the future plant, of the grades are trunderred at coul. Trucks are uned to move the lumber from the mill to the furniture plant. Although no outside sales, the mil could sell to external custome, and the selling nices of the four grades are known. The fabric plant is responsible for producing the fabric that is used by the furniture plant. To produce three totally different fatic identified by fahee ID codes F, F70, and respectively, the plant has three separate production operations-one for each fabric. Thus, production of all three fatnes occurs at the same time in different locations in the plant. Each fabric production operation has two processes the weaving and pattern process and the coloring and holting process. In the weaving and pattern process, yarn used to create yard fabric with different dem. In the next process, the fabric is dyed, cut into 25 yard sections, and wrapped around cardboard rods to form 25 yard bolts. The bolts are transported by for it to the future pour leceiving Department. All of the output of the fabric plant is used by the furniture plant to produce the sound chroccounting purposes, the fabrics transferred at cost to the future plant The furniture plant produces orders for customers on a special order basis. The customers specify the watey, style, Marx, lumbergrade, and pattern. Typically jobs are for (volving that 500 units). The plant has two production departments Cutting and Assembly. In the Department, there and wooden frame components are red and citoteronents purchased from external suppliers and are removed from starts as needed for sembly Nerthemed wooden components and finished for the entire they we moved to the Assembly Department. The Assembly Department takes the individual components and embles the sofos (or chas), Beauville Furniture has been in bases for over two decades and a good reputation. Howeven during the past few weapondering profits auf eininga increasingly lost even gresive bds) on the more popular models. Yet, the company ang bids on some of the more difficult to duce Lance there and in frustrated. He simply couldet understand how some of his compattors could sell for such low On a common sense units, tevile's his wenning 125 porno $12,500 per jo more than the winning bids (on average). Yet, on the more difficult items, Beads were running out 60 punt than the next sted. Gerne vee president of finance, was signed the task of preparing casts of the company's productions and wanted to the come we weer the company when west, and it was my costing more to produce furniture that was costing competitors Gisela prepared herself by reading recent literature on cost management and product costing and attending several conferences that explored the same mues. She then reviewed the conting procedures of the company's mill and two plants and did a preliminary assessment of their soundness. The production costs of the mill were common to all lumber grades and were we the physical units method, since the output and production costs were fairly uniform throughout the year, the milled an actual casting system. Athough we had no culty with actual conting she decided to explore the effects of using the sales value at split off method. Thus, cost and production data for the mill were gathered so that an analysis could be conducted. The two plants sed normal conting system. The fabric plant used process costing, and the furniture plant used job order conting. Both planted plantwide overheatre based on direct labor hours Based on her til review, she concluded that the costing procedures for the fabric plant were satisfactory.sentially, there was no evidence of product diversity. A statistical analysis revealed that shouts per of the variability in the plant's overhead cost could be explained by direct labor hours. Thus, the use of a plantwide overhead rate bred on direct labor hours seemed justified. What did concenter though, was the material waste that she observed in the plant. Maybe a standard cost system would be useful for increasing the overall cost efficiency of the plant. Consequently, as part of her report to Lance, she decided to indude a description of the fabric plant's costing procedures at least for one of the fabric types. She also decided to develop a standard cost sheet for the chose fabric. The furniture plant, however, was a more difficult matter Product diversity was present and could be causing some distortions in productos. Furthermore, Masalanalysis revealed that only about 40 percent of the variability in overhead cost was explained by the direct labor hours. She decided that aditional analysis was needed so that sound product cating method could be recommended. One possibility would be to increase the number of overhead rates. Thus, she decided to include departmental data so that the effect of moving to departmental des could be assessed. Finally, she also wanted to explore the possibility of converting the sawmill and fabric plant into profit centers and changing the custing transfer pricing policy With the cooperation of the cost accounting manager for the mill and each plant's controller, she gathered the ng data for last year Sawmills Joint manufacturing costs: $900,000 Quantity Produced Grade (board feet) Firsts and seconds 1,500,000 No. 1 common 3,000,000 Price at Split of (per 1,000 board foot) 5300 225 Quiz 2 (Chapters 5 - 10) Sawmill: Joint manufacturing costs: $900,000 Quantity Produced (board feet) Price at Split-Off (per 1,000 board foot) Grade Firsts and seconds 1,500,000 $300 No. 1 common 3,000,000 225 No. 2 common 1,875,000 140 No. 3 common 1,125,000 100 Total 7,500,000 > Fabric Plant: Budgeted overhead: $1,200,000 (50% fixed) Practical volume (direct labor hours): 120,000 hours Actual overhead: $1,150,000 (50% fixed) Actual hours worked: Weaving and Coloring and Pattern Bolting Grade Total Fabric FB60 20,000 12,000 32,000 Fabric FB70 28,000 14,000 42,000 44,000 Fabric FB80 26,000 18,000 Fabric FB60 20,000 12,000 32,000 Fabric FB70 14,000 28,000 26,000 42,000 44,000 Fabric FB80 18,000 Total 74,000 44,000 118,000 Departmental data on Fabric FB70 (actual costs and actual outcomes): Weaving and Coloring and Bolting Pattern Beginning inventories Units 20,000 400 Costs Transferred in 30 $100,000 $8,000 $80,000 $18,000 $22,000 $6,600 Materials Labor Overhead Current productions Units started $9,000 2 80,000 30,000 Units transferred out 3,200 Costs: Quiz 2 (Chapters 5 - 10) Costs Transferred in 50 7 30 40 Materials $320,000 582,000 Labor $209,000 599,400 Overhead 2 Percentage completion Beginning inventory 409 Ending inventory 50% Units are measured in yards for the Weaving and Potter Department and be for the Commandoting partNote: With the exception of the condition materials are added at the beginning of each proces. The cost of the rositively witched overhead Proposed standard cow sheet for at for the Coloring and sing Department Transferred materials (25 yards 510) $250.00 Other materials (100 unces $0.20) 20.00 Labor (3.1 hours) verhead hours 15) Vartotours 55) 15.50 Standard $325.00 24.00 15.50 aplers 5.10) Furniture Plants Departmental data (budgeted) Service Departments Receiving Maintenance Producing Departments General Factory Cutting Assembly $525.000 $750,000 $375,000 60,000 15.000 Overhead $450,000 $600,000 $300,000 Machine hours Receiving orders square feet 9,000 13.500 15.000 1,000 5,000 4,000 Director hours 10,000 200,000 50,000 After some dicon with the furniture plant controller, Chelseaded to us machine hours to calculate the overhead for the Cutting Department and direct for the Department at the Cutting Department was more automated than the Department of her the waited to compare the effects of plante de on the cost of you. She wanted to know if need costing contest of the main protes the com www To the effect of the different eventuairment produs, Celadeded to examine two prospective. One y, sob A500, cool produce som, sing only route style and Fabric F70. Bids on this type of job were being lot more recently competitors. The second job wounded in the ho de and was officult for the work to build it involved some specat cutting requirements and an ambiente type to compute the cost of the two obsessembled the following formation on the two o Job AVO Dumat F G Fabric TB70 10 bolts $350 Lure (No. 1 common) 20,000 board feet $0.12 $26,600 Other components Direct labor 400 urs $10 1,000 hours 0 15.25 Cutting Department Assembly Department Machiwtime Cutting Department Ambly Department 350 machine hours 50 machine hours Job 81750 Direct materials Fabric 70 26 yards o$350 Lumer (first and seconds) 2,200 board feet $0.12 Other components Direct labor Cutting Department 70 hours $10 Assenny Department 240 hours Machine Cutting Department Assembly Department 90 machine hours 15 machine hours Required: 1. Allocate the point manufacturing costs to each grade and calculate the cost per board foot for each grade using the following methods Roundunt cost awer to two decimal places (a) Physical units method of allocation Grades Allocation Unit Cost Firsts and seconds 180,000.00 0.12 No. 1 common 0.12 360,000.00 1,875,000.00 No. 2 common 0.12 No. 3 common 0.12 Total $ (b) Sales-value-at-split-off method: Grades Allocation Unit Cont Hists and seconds 270.000 O.IN NO. 1 como 465,000 0.14 No 2 common 0.00 Nu.com 67,500 0.06 No. 3 common 0.06 Totals 67,500 960,000 Which method should the mill use? Physical units method of allocation What is the effect on the cost of each proposed by the mill switches to the sales value of method tecton Job Aso the cost per board foot is increase thus cost increase by flect on Job 25 the cost per board foot decrease thus cont increase by 2. Calculate the plantwide overhead rate for the fabricant 10 per hour 3. Calculate the amount of under er overophed overhead for the fobe plant 30,000 evrapplied 4. Using the weighted average method, calote the cost per bot for fabric / 10 5. Assume that the weaving and pattern process is not a separate process for each fabric. Also, me that they used for each bieters gantly which would costing be appropriate for the wearing and pattern procre What coating approach would you recommend Describe your machine Process costing would not berri Operation conting is the reach that should used. Tical conversion costs we wed no procedere comer en rate. Thus, we would have a hybrid of job order and pricing procedures 6. In the Coloring and Bolting Department, 400,000 cunces of other materials were and to produce the output pending the standardowe the followed variances for the Coloring and Bolting Drement No. 3 common 0.06 Totals 67,500 960,000 Which method should the mill use? Physical units method of allocation What is the effect on the cost of each proposed by the mill switches to the sales value of method tecton Job Aso the cost per board foot is increase thus cost increase by flect on Job 25 the cost per board foot decrease thus cont increase by 2. Calculate the plantwide overhead rate for the fabricant 10 per hour 3. Calculate the amount of under er overophed overhead for the fobe plant 30,000 evrapplied 4. Using the weighted average method, calote the cost per bot for fabric / 10 5. Assume that the weaving and pattern process is not a separate process for each fabric. Also, me that they used for each bieters gantly which would costing be appropriate for the wearing and pattern procre What coating approach would you recommend Describe your machine Process costing would not berri Operation conting is the reach that should used. Tical conversion costs we wed no procedere comer en rate. Thus, we would have a hybrid of job order and pricing procedures 6. In the Coloring and Bolting Department, 400,000 cunces of other materials were and to produce the output pending the standardowe the followed variances for the Coloring and Bolting Drement Quiz 2 (Chapters 5.10) 6. In the Coloring and Bolting Department, 400,000 unces of other materials were ud to produce the of the period thing the red standard cohet, cute the follow varices for the Coloring and Boring Department Enter wil wounts as positivember a. Materials price variance for other materials only) Favorable b. Materials usage variance for other materials only) Favorable Laborate variance favorable d. Laborecency variance Favorable In calculating the variances, which method did you use to compute the actual tout of the pred-For weighted well. FIFO must be used because it measures output of the period. Standard como content contestar con need standard cost can be used to value goods transferred out and WE Thus, we are the heat and the Weight Are 7. Assume that the standard hours allowed for the cultural output of the plantare 115,000. Ce the followers 575,000 favorable Enter all mounts pember a ned overhead spending bied overhead volume variance Variable overhead spending van d. Vorberedency 590,000 15,000 575,000 Have Favorable 3. Suppose that the fabricant has 500 bolt of 17 ging het ons wear. The current years to have come in the good to The fabricant price of $400 per bolt ca procentos 2000 years on 2000 internal to Deauviller. If the fabricant were devoted at a pret carte, then travel what matches B. Suppose that the fabric plant has soo bolts of 670 in beginning finished goods inventory. The current year plans to have 1,000 bolts of 20 in shed gode story the mil of the yox The fabric has an emal market price of $100 per bot. If the fabric plant is set up as a profit center, it could sell 3,000 bolts per year to outside ones and 2,000 bolts per year internally to Beauville's furniture plant. If the fabric plant were designated as a profit center, the plant would transfer all goods internally at market printing the proposed standart content needed) and any other relevant data, prepare the following for Fabric F70 a. Sales budget 2,000,000 b. Production budget 5,500 c. Director budget 136,400 d. Cost of goods sold budget 1,629,000 5. Calculate the following averad vates for the future plant (1) plantwide rate wartmental them with your answers to two decimal places Rate Pantider per per MH Assembly department D D 10. For each of the overad rutes compte que entent for Jobs A500 your new to two domics Unitsid Partides Sob A500 575 10. For each of the overhead rates Computed in rement, Gioisturit bid prices forstand 675 Round your answers to the Geo Unit Bid Plantwide rates Job A500 Job 875 Departmental rates, Job A500 Job 375 Assume that the company's aggressive bidding policy is unit cost plus 50 percent. Did departmental overhead races have my effect on Deville's winning or using de? What recommendation would you make? Explain. Round your answers to two decimal places. Departmental rates increase the bid for the more easily produced Job A500 and increase the bed for the more easily produce Job 7. This appears to be in the direction. We would recommend using the plantwide rate Now, adjust the costs and bids for departmental rate bids using the proposed standard costs for the Coloring and Bolting Department of this make a difference? What does this you und your answers to two decimal places. Enter all amounts as positive numbers Standard cost would increase the cost of Fabric FB 70 for both jobs. For Job ASOO, e costs will increase hy And for lo met wilders by Thus, the bid for Job A500 will increase by Similarly, the bid for jobs will increase ty This tets us that we can only induding was in tur bid by using standard costs and improve our bidding. It also tells us that we had to focus on becoming more 11. Suppose that the for plant is up as a profit center, Bolts of Fabric Foil for $400 for can be bought fw 100 from outside the plants the future both capacity. Assume that Job A500 is a special order. The fabric and mature pants have sufficiente proty to satisfy the demands ASD What is the member for belt of FB707 losind your answers to two decimal places QUIZ 2 chapters 10) Job 125 Assume that the company's resive bidding policy is un cost plus 50 percent. Od departmental evad ruters have reflect on the ville weg orng bids What recommendation would you make? Explain. Round your owwer to two decimal places Department is increase the bed for the more easily produced Job A500 and increase the bed for the more easily produce Job 25. Top to be in the right direction. We would recommend using the plant wide rate Now, adjust the costs and bids for departmental rate bide using the proposed standard costs for the Command Boting Department of this make a difference? What does this all you? Hound your answers to two decimal place inte all amounts s poutie numbers Standard cou would increase the cost of POZO for both jobs for lob ASOO, costs will And for os, me costs wil deerate Thus, the land for Jolo A500 will increase by Similarly, the for jobs will increane by This tells that we can including wat in our bid trying standard costs and improve our hidd It also tells that we need to focus on me efficient 11. Suppose that the fabric plant is set up as a procent. Bots of rain Fosfor $400 (or can be bought for 500 from outside suppliers). The fabric plant and the future at both have Git Awume that Jub ASO special order. The one and future that exempty to satisfy the demands of Job A500. What is the member of 707 Round your answers to two decimal places of the macam transfer $400, Wy how much do the fore profits crease? If the two protette nettster print that is the new SA