J Executive salaries, office supplies and legal expence examples of Period Costs Manufacturing Overhead Casts e Dired Labor Cents d. Product Costs e. Indirect Manufacturing Cons Costs that have been incurred in the past t Relevant b. Differential Discontinued Sk Fixed Managerial accounting is Followed strictly by GAAP procedures longer relevent so decision making a b. Equal to Financial Accounting reporting documentation Represents a best-case scenario basis Most suited for internal managers/decision makers All of the above The process to calculate the predetermined factory overhead rate is Actual total factory overhead costs divided by estimated activity base b. Estimated activity base divided by estimated total factory overhead costs c. Estimated laber costs divided by estimated total factory overhead com Estimated total factory overhead costs divided by estimated labor costs Estimated total factory overhead cos divided by estimated activity base Purchases of raw materials Increase the direct material costs in production Increase the raw material inventory balance account e. Decrease the direct material costs in production d. Increase cost of goods sold e. Increase the value of finished goods What are the three integral parts of determining total product costs Direct Material, Direct Labor and Manufacturing Overhead Direct Labor, Overhead and Building expense c. Direct Material, Direct Labor and Variable Overhead d. Direct Material, Direct Labor and WTP e Sales, Cost of Sales and Gross Margin Ending Work-In-Process includes a. Direct material and factory overhead, only b. Direct labor, only The difference between cost of good manufactured and total production costs d. Direct material, direct labor and factory overhead costs on completed jobs e. Only raw materials not finished in production 68 Purch Issued to Prod End Raw Materials Finished Goods 88 FG Cost of Goods Mfg Cost of Goods Sold End FG 30,000 telow 450,000 Below 2420,000 Cale 60,000 Below Problem B BA-WIP Production Costs 350,000 Below Direct Materiah Direct Laber ON Total Pred Costs Cost of Goods Mfg End WiP 420,000 Calc 300,000 From Selow 5500 From Below 900umor 809,500 1059500Cale 100,000 Selow 250,000 Below 1,059,500 Calc 1,189,500 Calc 120,000 Below Total Sales Assemblers' Direct Wages $300,000 Sales Commissions $15,000 Repairs on Machiney $15,000 Small tools $4,500 Executive Bonulcs $80,000 Jan 1 2016 Dec 31 2016 Raw Materials $30,000 $60,000 Work In Process (WIP) $350,000 $100,000 Finished Goods $250,000 $120,000 Cost Of Goods Sold Gross Marg Advertising Expense Sales Commissions Ceceive Bonuses Net Income Loss) Advertising Expense Raw Materials Purchased Factory Utilities Net Incon $30,000 $450,000 Factory Depreciation Exp $10,000 $60,000 $15,000 129500 Cale 1,109,500 30,000 Below 15,000 Below 80,000 Below 15,000 change, th init ses ange ases ases Sale ops 317 chead costs to be $715,000 and direct labor dollars of $2,640,000 based on an average rate of $12 per h Me-Off, Inc. is a steel container manufacturer. At the beginning of the year, the company estimated The company uses labo ours as a basis to apply factory overhead. During the year, the company actually produced and completed 1,000 boxes. The company used $450,000 of steel and actually used 275,000 hours at an average rate of $11.00 per direct labor hour to produce those boxes. Given the information above, determine a. the factory pre-determined overhead rate to be applied throughout the year (5pts) b. calculate the product cost, per box, based on your pre-determined OH application (5pts) At the end of the year, the company actually incurred the following overhead expenses: Indirect Labor of $400,000, Employment Taxes and Benefits of production workers of $150,000, Maintenance on Equipme $125,000, Sales Commissions paid, $60, per box, Factory Depreciation Expense of $140,000, Net Income of $5,500, Production Facility Utility Costs of $100,000 and Executive Salaries of $275,000. Now, c. determine the total value of factory overhead over allocation or under allocation, if any, att of the year (5pts) d. explain the effects of the cost of sales and net income during the period based on your calcul over or under allocation - before the over/under allocation is expensed (5pts) e. give an example of a business decision that may be affected by grossly under or over allocat overhead (5pts); be detailed/specific. Estimated OH Estimated Direct Labor Dollars, Estimated Average Pay Rate Actual Production Units Direct Material Costs Actual Labor Hours Acutal Labor Rate (a) Predetermined OH Rate (PDOHR)- Problem B Total Estimated Old Expenses Activity Base (b) Accumulated COGS Manufactured (-Over/Under Applied Facorty Overhead +Direct Materials Used + Direct Labor Used OH Applied based on PDOHR Total Production Costs Total Production Costs Cost per Unit Number of units produced Actual Of Incurred 715,000 2,640,000 12.00 1,000 450,000 275,000 Sales Commissions, per box Factory Depreciation Exp Indirect Labor Expense 600.000 Employment Taxes Workers 150,000 Maintenance $25,000 60 40.000 11.00 Net Income Taxes Production Facility Utilities 6.500 Cxecutive Salaries 100,000 275,000 215.000 220,000 $ 450,000 Above 3,025,000 above Calc $ 893,750 Calc from above $ 4,368,750 $ 4,368,750 1,000 Indirect Labor Expense $ 400,000 Above Employment Taxes Workers S 150,000 Above Maintenance $ 125,000 Above Factory Depreciation Exp $ 140,000 Above Production Facility Utilities $ 100,000 Above 915,000 Applied OH $ 833,750 From Above Over Under ArtFLOT 21250 Overstated/Understated nyhed Goods inders (d) Understated and Neocon Define from above