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Can you help me solve this case? I need it by Thursday April 28 Totals A Table 1: Income Statement The Hardin Tools Company For
Can you help me solve this case? I need it by Thursday April 28
Totals A Table 1: Income Statement The Hardin Tools Company For the year ended Dec. 31, 2015 B C D E 12,242,000 18,000 2,466,000 12,000 1,776,000 20,500 4,100,000 10,000 1,650,000 18,000 2,250,000 1,866,400 6,280,750 2,920,000 11,067,150 1,174,850 Units sold Sales revenue Cost of goods made and sold: Direct mat'ls Direct labor Fact. overhead Total Gross margin 424,800 1,227,600 570,727 2,223,127 242,873 297,600 943,200 438,506 1,679,306 96,694 574,000 2,371,850 1,102,703 4,048,553 51,447 300,000 542,000 251,983 1,093,983 556,017 270,000 1,196,100 556,082 2,022,182 227,818 197,600 39,804 28,667 66,179 26,633 36,318 Sell & Adm exp 977,250 203,069 68,028 (14,732) 529,384 191,500 Net income before taxes Notes: 1. The method for allocating factory overhead costs to products is based on a plantwide rate that uses direct labor costs as the cost driver. 2. The method for allocating selling and administrative expenses is based on sales revenue dollars. Table 2: Some product costs for last year The Hardin tools Company product A B C D E Dir Labor costs Production and Accounting data for the Calendar Year Machining Dept. Assembly Dept. Unit Dir Lab Machine Dir Lab Material Hours per Hours Hours per cost Unit Per unit unit 23.60 24.80 28.00 30.00 15.00 0.30 0.20 0.30 0.20 0.35 333,750 0.40 0.10 0.45 1.25 0.50 Machine hours per unit 2.50 3.00 4.40 2.00 2.40 5,860,000 0.00 0.00 0.00 0.00 0.00 Finishing Dept. Dir Lab Machine Hours per Hours unit per unit 1.00 0.08 1.20 0.04 0.90 0.08 1.30 0.08 0.90 0.08 87,000 Note: 1. Beginning and ending inventories of all products were the same. 2. Direct labor rate is $25 per hour for Assembly Departement workers and $15 per hour for other departments. Table 3: Data for Allocation Bases (The Hardin Tools Company) Mat'l Movement Dept. Alloc. Base Cost classif: Indirect labor Fringes Depreciation Utilities Supplies MIS services Mat'l movement Fact support Machining Assembly Finishing Past % # Employ Invest SF Floor Past % Hrs Used # Requis Hrs Used Mach Hrs DL Hours Mach Hrs 10% 10 400,000 4,000 0 800 500 NA NA NA Table 4: Factory Overhead Cost classif: Indirect labor Fringes Depreciation Utilities Supplies MIS services Totals Total 1,000,000 450,000 900,000 150,000 220,000 200,000 2,920,000 Fact. Support Dept. 20% 12 640,000 2,000 0 500 NA NA NA Machining Dept. 25% 10 3,600,000 16,000 0 2,200 600 5,000 39,125 NA NA Assemb. Dept. 30% 100 800,000 10,000 0 400 3,500 NA 234,400 NA Finishing Dept. 15% 8 2,560,000 8,000 0 2,000 350 4,000 NA NA 80,050Step by Step Solution
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