Brockville Furniture uses departmental overhead rates (rather than a plantwide overhead rate) to allocate its manufacturing overhead to jobs. The company's two production departments have the following departmental overhead rates: Cutting Department: $16 per machine hour Finishing Department: $21 per direct labour hour a (click the icon to View the resources used on the specic job.) Requlrements 1. How much MOH should be allocated to Job 553'? 2. Assume that direct labour is paid at a rate of $32 per hour and Job 553 used $2,500 of direct materials. What was the total manufacturing cost of Job 553? Requirement 1. How much manufacturing overhead should be allocated to Job 553? Resources Let's begin by determining the formula and overhead for the Cutting Department Job 553 used the following direct labour hours and machine hours in the two manufacturing departments: Cutting Dept. overhead x x Cutting Finishing Job 553 Department Department Direct labour hours ........ 2.5 9 Machine hours ............ 15 2 Done Uncle Bruce's Snacks makes potato chips, corn chips, and cheese puffs using three different production lines within the same manufacturing plant. Currently, Uncle Bruce uses a single plantwide overhead rate to allocate its $3,698,000 of annual manufacturing overhead. Of this amount, $2,332,000 is associated with the potato chip line, $737,000 with the corn chip line, and $629,000 with the cheese puff line. Uncle Bruce's plant is currently running a total of 17,200 machine hours: 10,600 in the potato chip line, 3,200 in the corn chip line, and 3,400 in the cheese puff line. Uncle Bruce considers machine hours to be the cost driver of MOH costs. 1 What is Uncle Bruce's plantwide overhead rate? Calculate the departmental overhead rates for Uncle Bruce's three production lines. Round all answers to the nearest cent. W N Which products are overcosted by the plantwide rate? Which products are undercosted by the plantwide rate? Requirement 1. What is Uncle Bruce's plantwide overhead rate? Determine the formula for calculating the plantwide overhead rate, then calculate the rate. Plantwide overhead rateNext Technology uses ABC to allocate all of its manufacturing overhead. Next's Cell Phone Department, which The activities required to build the processors are as follows: assembles and tests digital processors, reports the following data regarding processor G27: (Click the icon to view the activity data.) Direct materials cost. . $ 21.00 1. Fill in the blanks in both the opening schedule and the list of activities. 2. Why might managers favour this ABC system instead of the older system that allocated all MOH costs on the Direct labour cost $ 48.00 basis of direct labour? Manufacturing overhead allocated $ ? Manufacturing product cost. . . . X Activity data 1. Fill in the blanks in both the opening schedule and the list of activities. Activity Allocation Base Costs Allocated to Each Board Let's begin with the list of activities. (Round your answers to the nearest cent, as appropriate.) Start station Number of processor boards 5x $ 0.80 = $ 4.00 Activity Allocation Base Costs Allocated to Each Board Dip insertion Number of dip insertions 45 x $ 0.20 = Start station Number of processor boards 5 x $ 0.80 = $ 4.00 Manual insertion Number of manual insertions 8 x $ ? = 2.40 Dip insertion Number of dip insertions 45 x $ 0.20 = Wave solder Number of processor boards soldered 5 x $ 5.10 = 25.50 Manual insertion Number of manual insertions 8 x 2.40 Backload Number of backload insertions ? x $ 0.60 = 4.20 Wave solder Number of processor boards soldered 5 x $ 5.10 = 25.50 Standard time each processor board is in test Backload Number of backload insertions x $ 0.60 = 4.20 Test activity (hours) 0.20 x $ 105.00 = 2 Test Standard time each processor board is in test activity (hours) 0.20 x $ 105.00 = Defect Standard time for defect analysis and repair analysis (hours) 0.23 x $ ? 6.90 Defect analysis Standard time for defect analysis and repair (hours) 0.23 X 6.90 $ ? Total Total Print Done Help me solve this Video Get more help -Information relating to Driver Inc. follows: 0 (Click the icon to View the company's information.) 1. Compute Driver's indirect cost allocation rate. 2. Compute the total costs assigned to the Wemer and Innella engagements. 3. Compute the operating income from the Werner and Innella engagements. Requirement 1. Compute Driver's indirect cost allocation rate. First identify the formula used to compute the indirect cost allocation rate, then compute the rate. (Round your answer to two decimal places.) / Indirect cost allocation rate (per hr) Schnell suspects that her allocation of indirect costs could be giving misleading results so she decides to develop an ABC system. She identifies three activities: documentation preparation, information technology support, and training. Schnell figures that documentation costs are driven by the number of pages, information technology support costs are driven by the number of software applications used, and training costs are most closely associated with the number of direct labour hours worked. Estimates of the costs and quantities of the allocation bases follow: (Click the icon to view estimates of costs and quantities of the allocation bases.) i (Click the icon to view the background information.) Compute the cost allocation rate for each activity. D First, determine the formula to compute the allocation rate in an activity-based costing system, then compute the rate. (Abbreviations: Est. = estimated, Act. = actual, qty. = quantity. Round your answers to the nearest cent.) ABC allocation rate - X Data table Estimated Allocation Estimated Quantity Activity Cost Base of Cost Driver Documentation preparation $ 120,000 Pages. 3,125 pages Information technology support . . .. . 172,000 Applications used . . . .. . 780 applications Training . . . . .. 458,000 Direct labour hours . . .. . 5,200 hours $ 750,000 Total indirect costs . . . . . . . . . . . . . . . Print Done Help me solve this Video Get Clear all Check answerIdentify which of the following manufacturing overhead costs are value-added and which are non-value added. 1. Moving raw materials from the receiving area to the storage area. 7 2. Storing raw materials until needed in production. : 3. Inspecting raw materials when they arrive to make sure that they meet 7 specications. 4. Assembling parts into a completed product, 7 5. Partially completed unim are stacked while awaiting the next production step. 7 6 Some of the raw materials are broken while in storage 7 7. Product warranty work is performed on units that malfunctioned for customers. y 8. Product is delivered to customer. ; Video Etext pages Get more help A Baddeck Inc. uses ABC to account for its chrome wheel manufacturing process. Company managers have identified four manufacturing activities that incur manufacturing overhead costs: materials handling, machine set-up, insertion of parts, and finishing. The budgeted activity costs for the upcoming year and their allocation bases are as follows: i (Click the icon to view the budgeted costs and activity bases.) Baddeck Inc. expects to produce 1,000 chrome wheels during the year. The wheels are expected to use 3,000 parts, require 10 set-ups, and consume 1,500 hours of finishing time. Job 420 used 125 parts, required 5 set-ups, and consumed 210 finishing hours. Job 510 used 550 parts, required 6 set-ups, and consumed 320 finishing hours. Requirements - X Budgeted costs and activity bases Requirement 1. Compute the cost allocation rate for each activity. Total Budgeted First, identify the formula, and then compute the rate for each activity. Manufacturing Activity Activity Overhead Cost Allocation Base overhead rate Materials handling . . . . $ 9,000 Number of parts Machine set-up 3,500 Number of set-ups Insertion of parts . . . . . 45,000 Number of parts Finishing 78,000 . . . . . . . . . . Finishing direct labour hours $ 135,500 Total . . . . . . . . . . . . . . . Print DoneQuestion 9, E723A (similar to) HW Score: 0%, 0 of 171 points = Homework: Actwrty Based Costing 0 points: 0 of 48 Several years after reengineering its production process, Hartford Corp. hired a new controller, Georgia Taylor. She For the upcoming year, Hartford's budgeted ABC manufacturing overhead allocation rates are as follows: developed an ABC system very similar to the one used by Hartford's chief rival, Hollingsworth. Part of the reason Taylor a (Cllck the Icon to view the additional data.) developed the ABC system was that Hartford's prots had been declining even though the company had shifted its product mix toward the product that had appeared most protable under the old system. Before adopting the new ABC system, Hartford had used a plantwide overhead rate based on direct labour hours that was developed years ago. The number of parts is now a feasible allocation base because Hartford recently purchased bar-coding technology. Hartford produces two wheel models: Standard and Deluxe. Budgeted data for the upcoming year are as follows: E (Click the icon to View the budgeted data.) Requirement 1. Compute the total budgeted MOH cost for the upcoming year. (Round the actlvl ManUfaCturlng overhead allocation rates Hartford Total Budgeted Indirect Manufacturing Costs Activity Cost Budgeted Quantity of Activity Cost Total Budgeted Activity Allocation Base Allocation Rate Activity Cost Allocation Base Allocation Rate Indirect Cost Materials handling . . . . Number of parts 3.95 per part Materials handling Machine set-up ...... Number of set-ups 380 per setup Machine set-ups Insertion of parts ..... Number of par$ 28.00 per part Insertion of parts Finishing .......... Finishing direct labour hours 4900 per hour Finishing _ X Total budgeted indirect cost BUdgeted data Standard Deluxe Parts per wheel ....................... 5.0 7.0 Setups per 1600 wheels ............... 40.0 40.0 Finishing direct labour hours per wheel , . . , 1.1 2.4 Total direct labour hours per wheel ...... 2.9 3.3 Help me solve this Video Get more help A The company's managers expect to pr;::::e 1600 units of each model during the m m Garvey Furnishings manufactures upscale custom furniture. Garvey Furnishings currently uses a plantwide overhead rate based on direct labour hours to allocate its $1,014,000 of manufacturing overhead to individual jobs. However, Werner Garvey, owner and CEO, is considering refining the company's costing system by using departmental overhead rates. Currently, the Machining Department incurs $715,200 of MOH while the Finishing Department incurs $298,800 of MOH. Ernie has identified machine hours (MH) as the primary MOH cost driver in the Machining Department and direct labour (DL) hours as the primary cost driver in the Finishing Department. i (Click the icon to view the job information.) Requirements - X Job information Requirement 1. Compute the plantwide overhead rate assuming that Garvey expects to incur 26,000 total DL hours durin First identify the formula, and then compute the rate. (Round your answer to the nearest whole dollar.) The Garvey Fine Furnishings plant completed Jobs 450 and 455 on May 15. Plantwide overhead rate Both jobs incurred a total of 9 DL hours throughout the entire production process. Job 450 incurred 4 MH in the Machining Department and 5 DL hours in the Finishing Department. Job 455 incurred 6 MH in the Machining Department and 3 DL hours in the Finishing Department. Print DonePack produces different styles of potato chips (rufed, at, thick-cut, gourmet) for different corporate customers, Each style of potato chip requires different preparation limes, different cooking and draining times (depending on desired fat content), and different packaging (single serving versus bulk). Therefore. Pack has decided to tryABC costing to better capture the manufacturing overhead costs incurred by each style of chip. Pack has identied the following activities related to yearly MOH costs and cost drivers associated with producing potato chips: a (Click the icon to view the data.) Compute the activity cost allocation rates for each activity assuming the following total estimated activity for the year: 11,000 preparation hours, 34,000 cooking and draining hours, and 7 million packages. Begin by determining the formula for calculating activity cost allocation rate. then calculate the rates for each activity, (Round your final answers to the nearest cent.) / = Activity cost allocation rate Machine Activity Overhead Cost Driver Preparation ........... $ 385,000 Preparation time Cooking and draining . . . . $ 1,088,000 Cooking and draining time Packaging ttttttttttt $ 630,000 Units packaged Done Aunt Lydia just received an order to produce 14.000 single-sewing bags of gourmet, fancy-cut, lowfat potato chips. Aunt Lydia uses ABC costing to capture manufacturing overhead costs. The order will require 23 preparation hours and 38 cooking and draining hourst E (Click the icon to view the relevant activity rates.) Requirements 1. What is the total amount of MOH that should be allocated to this order? 2. How much MOH should be assigned to each bag? 3. What other costs will Aunt Lydia need to consider to determine the total manufacturing costs of this order? Requirement 1. What is the total amount of MOH that should be allocated to this order? Determine the basic formula needed to allocate overhead to this order. then compute the overhead allocated to each activity (Round all intermediary calculations to two decimal places as needed. Round your nal answers to the nearest whole dollar.) Allocated manufacturing x = overhead Activity rates Preparation x = Cooking/draining x = Activity Packaging x = Activity Cost Allocation Rate Base Units Preparation 36.00 per hour of preparation Cooking and draining 31.00 per hour of cook and drain Packaging 0.05 per unit packaged talan' Industries, a family-run small manufacturer, has adopted an ABC costing system. The following manufacturing activities, indirect manufacturing costs, and usage of cost drivers have been estimated for the year: E (Click the icon to view activities, total MOH costs, and cost drivers.) luring May, George and Jessica Salari machined and assembled Job 417. George worked a total of 15 hours on the job, while Jessica worked 9 hours on the job. George is paid $23 per hour wage rate, while Jessica is paid $29 per hour ecause of her additional experience level. Direct materials requisitioned for Job 417 totalled $1,150. The following additional information was collected on Job 417: the job required one machine setup, ve machine hours, and three quality ontrol tests. Compute the activity cost allocation rates for the year. Complete the job cost record for Job 417. lequirement 1. Compute the activity cost allocation rates for the year. irst, determine the formula to compute the allocation rate for the activity-based cost rate, then calculate the rate for each activity. (Round your answers to the nearest whole dollar.) / = Activity cost allocation rate Data table Estimated Total Estimated Total Manufacturing Usage of Activity Overhead Costs Cost Driver Machine setup ......... $ 152,000 3,400 set-ups Machining .............. $ 1,010,000 5,300 machine hours Quality control ......... $ 345,000 4,700 tests run v K h calendar.google.com/calendar/u/1/r?tab=mc&pli=1 C + Software Update macOS Monterey 12.2.1 is available and will M Inbox - mehre@freeperiods.ca - Free Periods Canada Foundation Mail 31 Free Periods Canada Foundation be installed later tonight. 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