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I have already completed required 3, I only need help with 1,2 & 4. Thank you Kingsport Containers Company makes a single product that is
I have already completed "required 3", I only need help with 1,2 & 4. Thank you
Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. its estimated costs, by quarter, for the coming year are given below. Management finds the variation in quarterly unit product costs to be confusing. Ut has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product. Required: 1. Assuming the estimated variable manufacturing overhead cost per unit is $0.40, what must be the estumated total fixed manufacturing overhead cost per quarter? 2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? 3. What is causing the estimated unit product cost to fluctuate from one quarter to the next? 4 Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates. calculate the unit product cost for all units produced during the year. 8 Answer is not complete. Complete this question ty entering your answers in the tabs telow. Assuming the company computes one petedetermined ovethead rate for the year rather than computing quarteriy overhead raten, calculate the unit product cost for all units produced doring the year: Note: Do not round intermediate calculations and round your final anower to 2 decimal places. Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below: Management finds the variation in quarterly unit product costs to be confusing it has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly. you have been asked to find a more approptiate way of assigning manufacturing overhead cost to units of product Required: 1. Assuming the estimated variable manufacturing overhead cost per unit is $0.40, what must be the estumated total fixed manufacturing overhead cost per quarter? 2 Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? 3. What is causing the estimated unit product cost to fluctuate from one quarter to the next? 4. Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates. calculate the unit product cost for all units produced during the year Answer is not complete, Complete thls question by entering your answers in the tabs below. Assuming the estimated vaciable manglacturing overhead cost per unit is souso, what must bo the estimated total fixed manufacturing overhead cost per quarter? Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below Management finds the variation in quarterly unit product costs to be confusing it has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigring manufactuning overhead cost to units of product. Required: 1. Assuming the estimated variable manufacturing overhead cost per unit is $0.40, what must be the estimated total fixed manufacturing overhead cost per quarter? 2 Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated upu product cost for the fourth quarter? 3. What is causing the estimated unt product cost to fluctuote from one quarter to the next? 4. Assuming the company computes one predetermined overhead rate for the year raber thao coinguting quanterly over head rates. calculate the unit product cost for all units produced doring the year 8 Answer is not complate. Complete this question tiv entering your amwers in the tabs below Step by Step Solution
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