Hello katrina,

You've assisted me in the past with Accounting II (2312) homework. I have a question I need help with please.

I've attached my homework and the one I need assistance with is Exercise 13.14 a-c (I already got the answer for (a) which I calculated it to be 16.8 machine hours but need your assistance with both b and c. Can you assist and if so, please provide solution and explanation. Thank you so much!!!

Amber Cagle ACCT 2312 3/22/16 Exercise 13.8 Value chain classifications Match each of the following cost items with the value chain business function where you would expect the cost to be incurred: Business Function a. Research and development b. Design c. Production d. Marketing e. Distribution f. Customer service Cost Item 1. Labor time to repair products under warranty f 2. TV commercial spots d 3. Labor costs of filling customer orders e 4. Testing of competitor's product a 5. Direct manufacturing labor costs _c_____ 6. Development of order tracking system for the Internet a______ 7. Printing cost of new product brochures ______ d 8. Hours spent designing childproof bottles ______a & b 9. Training costs for representatives to staff the customer call center a & f 10. Installation of robotics equipment in manufacturing plant ______c Exercise 13.10 Cost classifications For each of the following costs, check the columns that most likely apply (both variable and fixed might apply for some costs). Product Direct Indirect Period Variable Fixed x _____ _____ x _____ Staples used to secure packed boxes of product Plant janitors' wages _____ x _____ x _____ _____ x _____ x x Order processing clerks' wages _____ _____ x x _____ Advertising expenses _____ _____ x _____ x x _____ _____ x _____ Production supervisors' salaries _____ x _____ _____ x Sales force commissions _____ _____ x x _____ Maintenance supplies used _____ x _____ x _____ President's salary _____ _____ x _____ x Electricity cost for office building _____ x x x x Real estate taxes for factory _____ x _____ _____ x Real estate taxes for office building _____ _____ x _____ x Raw materials Production workers' wages Exercise 13.12 Cost classifications College Carriers manufactures backpacks that are sold to students for use as book bags. Required: Identify a specific item in this company's manufacturing, selling, or administrative processes for which the cost would be classified as a. b. c. d. e. f. g. Raw material. Direct labor. Variable manufacturing overhead. Fixed manufacturing overhead. Fixed administrative expense. Fixed indirect selling expense. Variable direct selling expense. 1 Amber Cagle ACCT 2312 3/22/16 Exercise 13.14 Product costingmanufacturing overhead Nautical Accessories, Inc., manufactures women's boating hats. Manufacturing overhead is assigned to production on a machine-hour basis. For 2016, it was estimated that manufacturing overhead would total $359,520 and that 21,400 machine hours would be used. Required: a. Calculate the predetermined overhead application rate that will be used for absorption costing purposes during 2016. b. During April, 3,900 hats were made. Raw materials costing $6,240 were used, and direct labor costs totaled $9,165. A total of 780 machine hours were worked during the month of April. Calculate the cost per hat made during April. c. At the end of April, 1,050 hats were in ending inventory. Calculate the cost of the ending inventory and the cost of the hats sold during April. 2 Amber Cagle ACCT 2312 3/22/16 Exercise 13.8 Value chain classifications Match each of the following cost items with the value chain business function where you would expect the cost to be incurred: Business Function a. Research and development b. Design c. Production d. Marketing e. Distribution f. Customer service Cost Item 1. Labor time to repair products under warranty f 2. TV commercial spots d 3. Labor costs of filling customer orders e 4. Testing of competitor's product a 5. Direct manufacturing labor costs _c_____ 6. Development of order tracking system for the Internet a______ 7. Printing cost of new product brochures ______ d 8. Hours spent designing childproof bottles ______a & b 9. Training costs for representatives to staff the customer call center a & f 10. Installation of robotics equipment in manufacturing plant ______c Exercise 13.10 Cost classifications For each of the following costs, check the columns that most likely apply (both variable and fixed might apply for some costs). Product Direct Indirect Period Variable Fixed x _____ _____ x _____ Staples used to secure packed boxes of product Plant janitors' wages _____ x _____ x _____ _____ x _____ x x Order processing clerks' wages _____ _____ x x _____ Advertising expenses _____ _____ x _____ x x _____ _____ x _____ Production supervisors' salaries _____ x _____ _____ x Sales force commissions _____ _____ x x _____ Maintenance supplies used _____ x _____ x _____ President's salary _____ _____ x _____ x Electricity cost for office building _____ x x x x Real estate taxes for factory _____ x _____ _____ x Real estate taxes for office building _____ _____ x _____ x Raw materials Production workers' wages Exercise 13.12 Cost classifications College Carriers manufactures backpacks that are sold to students for use as book bags. Required: Identify a specific item in this company's manufacturing, selling, or administrative processes for which the cost would be classified as a. b. c. d. e. f. g. Raw material. Direct labor. Variable manufacturing overhead. Fixed manufacturing overhead. Fixed administrative expense. Fixed indirect selling expense. Variable direct selling expense. 1 Amber Cagle ACCT 2312 3/22/16 Exercise 13.14 Product costingmanufacturing overhead Nautical Accessories, Inc., manufactures women's boating hats. Manufacturing overhead is assigned to production on a machine-hour basis. For 2016, it was estimated that manufacturing overhead would total $359,520 and that 21,400 machine hours would be used. Required: a. Calculate the predetermined overhead application rate that will be used for absorption costing purposes during 2016. $359,520/21,400 = 16.8 Machine hours b. During April, 3,900 hats were made. Raw materials costing $6,240 were used, and direct labor costs totaled $9,165. A total of 780 machine hours were worked during the month of April. Calculate the cost per hat made during April. c. At the end of April, 1,050 hats were in ending inventory. Calculate the cost of the ending inventory and the cost of the hats sold during April. 2