Fabric Plant:

Budgeted overhead: $$1,200,000(50\%$ fixed$)$

Practical volume $($direct labor hours$)$: $120,000$ hours

Actual overhead: $$1,150,000(50\%$ fixed$)$

Actual hours worked $($for each fabric type, department, and in total$)$:

Grade

Weaving and

Pattern

Coloring and

Bolting Total

Fabric FB$6020,00012,00032,000$

Fabric FB$7028,00014,00042,000$

Fabric FB$8026,00018,00044,000$

Total $74,00044,000118,000$

Departmental data on Fabric FB$70($actual costs and actual outcomes$)$:

Weaving and

Pattern

Coloring and

Bolting

Beginning inventories

Units$*20,000400$

Costs:

Transferred in $$0$ $$100,000$

Materials $$80,000$ $$8,000$

Labor $$18,000$ $$6,600$

Overhead $$22,000$ $$9,000$

Current production:

Units started $80,000?$

Units transferred out $80,0003,200$

Costs:

Transferred in $$0?$

Materials $$320,000$ $$82,000$

Labor $$208,000$ $$99,400$

Overhead $??$

Percentage completion:

Beginning inventory $30\%40\%$

Ending inventory $40\%50\%$

$*$Units are measured in yards for the Weaving and Pattern Department and in bolts for the

Coloring and Bolting Department. Note: With the exception of the cardboard bolt rods, materials

$5$

$2024,$ Jennifer K Howard. All rights reserved.

are added at the beginning of each process. The cost of the rods is relatively insignificant and is

included in overhead.

Proposed standard cost sheet for Fabric FB$70($for the Coloring and Bolting Department only$)$:

Transferred$-$in materials $(25$ yards @ $$10)$ $$250\mathrm{.}00$

Other materials $(100$ ounces @ $$0\mathrm{.}20)20\mathrm{.}00$

Labor $(3\mathrm{.}1$ hours @ $$8)24\mathrm{.}80$

Fixed overhead $(3\mathrm{.}1$ hours @ $$5)15\mathrm{.}50$

Variable overhead $(3\mathrm{.}1$ hours @ $$5)15\mathrm{.}50$

Standard cost per unit $$325\mathrm{.}80$

The Questions:

$1.$ Calculate the plantwide overhead rate for the fabric plant.

$2.$ Calculate the amount of under$-$ or overapplied overhead for the fabric plant.

$3.$ Using the weighted average method, calculate the cost per bolt for Fabric FB$70.$

$3$A$.$ Weaving and Pattern Department

i$.$ Physical flow schedule

ii$.$ EU schedule $($DM$,$ CC$)$

iii. Cost per EU $($DM$,$ CC$)$

$$ You will need to calculate applied OH

iv$.$ Cost of goods transferred out

$3$B$.$ Coloring and Bolting Department

i$.$ Physical flow schedule

$$ You will need to convert from yards to bolts

ii$.$ EU schedule $($Transferred$-$in$,$ DM$,$ CC$)$

iii. Cost per EU $($Transferred$-$in$,$ DM$,$ CC$)$

$$ You will need to calculate applied OH

$3$C$.$ Unit cost of a bolt of Fabric FB$70$