Accouting HW Questions

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Bella, Inc. manufactures two kinds of bagstotes and Satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $25,750. Additional estimated information is given below. Totes Satchels Direct materials cost per unit $31 $40 Direct labor cost per unit $53 $62 Number of units 500 350 Calculate the predetermined overhead allocation rate. (Round your answer to two decimal places.) Well Tool, Inc., a manufacturer of welding tools, divided its manufacturing prooess into two Departments - Machining and Finishing. The estimated overhead oosts for the Machining and Finishing Departments were $820,000 and $2,880,000 respectively. The company produces two types of tools - Standard and Deluxe. The Machining Department is mechanized, whereas the Finishing Department is labor oriented. Calculate the department predetermined overhead allocation rate for the Machining Department using machine hours as the allocation base. (Round answer to the nearest cent) Machining Finishing Estimated Machine hours Estimated Labor hours Standard 2,000 2,900 Deluxe 1,800 2,300 Totals 3,800 5,200 Gizmo Company, a manufacturer of small appliances, had the following activities, allocated costs, and allocation bases: Activities Allocated Costs Allocation Base Account inquiry (hours) $72,000 2,400 hours Account billing (lines) $48,000 15,000 lines Account verification (accounts) $11,000 28,000 accounts Correspondence (letters) $13,000 1,200 letters The above activities are carried out at two of its regional offices. Activities Northeast Office Midwest Office Account inquiry (hours) 120 hours 200 hours Account billing (lines) 12,000 lines 7,000 lines Account verification (accounts) 1,200 accounts 650 accounts Correspondence (letters) 70 letters 150 letters What is the cost per hour for the account inquiry activity? (Round your answer to the nearest cent.)Johnson, Inc. produces a special wrench. The target sales price is $60 per unit. The company desires a 25% net prot margin on its products. What is the company's target full - product cost per unit using target pricing? Harvey, Inc., a home healthcare rm. has been using a single predetermined overhead allocation rate with direct labor hours as the allocation base to allocate overhead costs. The company president has decided to develop an ABC system to more accurately allocate the indirect costs. She identied two activities related to the total indirect coststravel and information technology (IT) support. The other relevant details are given below: Estimated quantity of allocation Activity Allocation base Estimated costs base Travel Miles driven $100,000 4,600 miles IT Support Direct labor hours 76,000 2,700 DLHr Total $1 76,000 The predetermined overhead allocation rate for travel will be . (Round your answer to the nearest cent.) Esposito, Inc. uses a just - in - time costing system. During the month, Esposito incurred $400,000 as direct labor and $7,000 as overhead. Wages were not paid. Which of the following is the correct journal entry to record the conversion costs? O A. Conversion Costs 407,000 Wages Payable, Accumulated Depreciation, etc. 407,000 O B. Conversion Costs 407,000 Accounts Payable 407,000 O C. Conversion Costs 407,000 Wages Payable 407,000 O D. Manufacturing Overhead 407,000 Conversion Costs 407,000If a company undertakes a quality improvement program, it would spend an additional $200,000 on raw materials inspections and an additional $110,000 on finished goods inspection. This quality improvement program would save the company $550,000 in rework.What would be the cost or savings of undertaking this quality improvement program? O A. $240,000 in savings O B. $660,000 in additional costs O C. $240,000 in additional costs O D. $660,000 in savingsIf a company undertakes a quality improvement program, it would spend an additional $360,000 on raw materials inspection and an additional $240,000 on finish goods inspection. This quality improvement program would avoid loss of profits due to unhappy customers of $1,500,000. What would be the cost or savings of undertaking this quality improvement program? O A. $900,000 in additional costs O B. $900,000 in savings O C. $600,000 in additional costs O D. $600,000 in savingsCloset Links Clothing Company provided the following manufacturing costs for the month of June: Direct labor cost $132,000 Direct materials cost 88,000 Equipment depreciation (straight - line) 21,000 Factory insurance 18.000 Factory manager's salary 13.000 Janitor's salary 3,000 Packaging costs 18.400 Property taxes 14,000 From the above information, calculate Closet Link's total variable costs. Product A has a variable cost of $15 per unit and product B has a variable cost of $10 per unit. If a company makes 190 units of Product A and 190 units of Product B, what is the total variable costs for both products