Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Attached file has the spreadsheet for this question with the chart that is all jumbled up here from the copy and paste. Nerfyguns manufactures and

image text in transcribed

Attached file has the spreadsheet for this question with the chart that is all jumbled up here from the copy and paste.

Nerfyguns manufactures and sell battery-powered guns that shoot soft pelts retailing for prices ranging from $6 to $25.Nerfyguns come in 3 styles: Pistols, Rifles, and Assaults.All 3 Nerfyguns are manufactured in a common manufacturing site.Nerfyguns uses an absorption costing system that absorbs manufacturing overhead to the 3 styles based on direct material dollars.The single plantwide manufacturing overhead rate is predetermined prior to the beginning of the fiscal year using a flexible manufacturing overhead budget.Variable manufacturing overhead is budgeted to be $0.720 per direct material dollar, and annual fixed manufacturing is overhead is budgeted to be $6.5 million.All3 styles of Nerfyguns are produced in batches of 1,000 guns.The following table sumarizes the budgeted and actual results of operation for the year. NerfyGuns Styles Pistol Rifle Assault Actual number of units produced 7,100 4,400 2,200 Budgeted varible distributation per yearper 100 100 250 310 Budgeted production 6,350 4,800 2,300 Budgeted dierect labor per 1000 50 150 200 Price per 1000 2,200 6,300 7,200 Actual direct material per unit per 100 740 1,800 2,300 Budgeted dierect material per 1000 750 1,730 2,130 a Calculate the firmwide overhead rate for the year. b A batch of 1,000 rifles was produced in March that incurred $145 of direct labor and $1,650 of direct materials.How much overhead is absorbed by this batch of rifles produced in March. c Actual overhead incurred during the year was $23,586,000.Calculate the amount of over or under absorbed overhead for the year. d NerfyGuns writes off any over/underabsorbed overhead to cost of goods sold.What is the effect on earnings based on the answer provided in letter c?

image text in transcribed Nerfyguns manufactures and sell battery-powered guns that shoot soft pelts retailing for prices ranging from $6 come in 3 styles: Pistols, Rifles, and Assaults. All 3 Nerfyguns are manufactured in a common manufacturing site an absorption costing system that absorbs manufacturing overhead to the 3 styles based on direct material dolla plantwide manufacturing overhead rate is predetermined prior to the beginning of the fiscal year using a flexible overhead budget. Variable manufacturing overhead is budgeted to be $0.720 per direct material dollar, and ann manufacturing is overhead is budgeted to be $6.5 million. All 3 styles of Nerfyguns are produced in batches of following table sumarizes the budgeted and actual results of operation for the year. Nerfy Guns Styles Actual number of units produced Budgeted varible distributation per year per 100 Budgeted production Budgeted dierect labor per 1000 Price per 1000 Actual direct material per unit per 100 Budgeted dierect material per 1000 Pistol 7,100 100 6,350 50 2,200 740 750 Rifle 4,400 250 4,800 150 6,300 1,800 1,730 Assault 2,200 310 2,300 200 7,200 2,300 2,130 a Calculate the firmwide overhead rate for the year. A batch of 1,000 rifles was produced in March that incurred $145 of direct labor and $1,650 of b direct materials. How much overhead is absorbed by this batch of rifles produced in March. Actual overhead incurred during the year was $23,586,000. Calculate the amount of over or c under absorbed overhead for the year. NerfyGuns writes off any over/underabsorbed overhead to cost of goods sold. What is the effect d on earnings based on the answer provided in letter c? r prices ranging from $6 to $25. Nerfyguns mmon manufacturing site. Nerfyguns uses d on direct material dollars. The single fiscal year using a flexible manufacturing t material dollar, and annual fixed produced in batches of 1,000 guns. The

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

9th Edition

1118334329, 978-1118334324

Students also viewed these Accounting questions