Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 12-11A (Algo) Allocating to solve a timing problem LO 12-3 Walton Air is a large airline company that pays a customer relations representative $3,650

image text in transcribed
image text in transcribed
image text in transcribed
Exercise 12-11A (Algo) Allocating to solve a timing problem LO 12-3 Walton Air is a large airline company that pays a customer relations representative $3,650 per month. The representative, who processed 1020 customer complaints in January and 1,480 complaints in February, is expected to process 21,900 customer complaints during the year. Required a. Determine the total cost of processing customer complaints in January and in February Allocated Cost Month January February Problem 12-18A (Algo) Allocation to accomplish smoothing LO 12-1, 12-2, 12-3 Benson Corporation estimated its overhead costs would be $23,300 per month except for January when it pays the $156,090 annual insurance premium on the manufacturing facility. Accordingly, the January overhead costs were expected to be $179,390 ($156,090 + $23,300). The company expected to use 7,300 direct labor hours per month except during July, August, and September when the company expected 9,000 hours of direct labor each month to build inventories for high demand that normally occurs during the Christmas season. The company's actual direct labor hours were the same as the estimated hours. The company made 3,650 units of product in each month except July, August, and September, in which it produced 4,500 units each month. Direct labor costs were $23.70 per unit, and direct materials costs were $11.10 per unit. Required a. Calculate a predetermined overhead rate based on direct labor hours. b. Determine the total allocated overhead cost for January, March, and August c. Determine the cost per unit of product for January, March, and August. d. Determine the selling price for the product, assuming that the company desires to earn a gross margin of $20,50 per unit Complete this question by entering your answers in the tabs below. Reg A Reg to D Calculate a predetermined overhead rate based on direct labor hours. (Round your answer to 2 decimal places.) Predetermined overhead role per labor hour Req B to D > $23.70 per unit, and direct materials costs were $11.10 per unit. Required a. Calculate a predetermined overhead rate based on direct labor hours. b. Determine the total allocated overhead cost for January, March, and August. c. Determine the cost per unit of product for January, March, and August. d. Determine the selling price for the product, assuming that the company desires to earn a gross margin of $20.50 per unit. Complete this question by entering your answers in the tabs below. ReqA Reg B to D Determine the total allocated overhead cost, the cost per unit of product and the selling price for the product for January, March, and August. Assume that the company desires to earn a gross margin of $20.50 per unit. (Do not round Intermediate calculations. Round "Cost per unit" and "Selling price per unit" to 2 decimal places. Round your total allocated overhead cost to nearest whole dollar.) Show less January March August Total allocated overhead cost Cost per unit Selling price per unit ( ReqA Rage to

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

Application Of Quantitative Techniques For The Prediction Of Bank Acquisition Targets

Authors: Pasiouras Fotios

1st Edition

9812565183, 9789812565181

More Books

Students also viewed these Accounting questions

Question

=+c) How many factors are involved?

Answered: 1 week ago