Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 assigning manufacturing overhead cost to units of product. Required: 1. Assuming the estimated varieble manufacturing overhead cost per unit is $2.00, what must be the estimated total flxed manufacturing overhead cost per quarter? 2. Assuming the assumptions about cost behavior from the first three quarters hoid constont, 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, colculate the unit product cost for all units produced during the year. Complete this question by entering your answors in the tabs below. more appropriate way or assigning manutactunng overnead cost to units of proauct. Required: 1. Assuming the estimated variable manufacturing overhead cost per unit is \$2.00, 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 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 yoar rather than computing quarterly overhead rates. calculate the unit product cost for all units produced during the year. Complete this question by entering your answers in the tabs below. Assuming the assumptions about cost behaviot from the first three quarters hold constant, what is the estimated unit product cost for the fourth guarter? (Do not round intermediate calculations and round your final anwer to 2 decimal places.)

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_2

Step: 3

blur-text-image_3

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

More Books

Students also viewed these Accounting questions

Question

Describe the psychological bases of modern-symbolic prejudice.

Answered: 1 week ago