LCH!!! 2-A Calculate Stangare Direct Labor Hours, Machine Hours & Predetermined uverneagra T.O.T.E.S. CALCULATING STANDARD COSTS Forecasted Production per year 500,000 totes DIRECT LABOR ACTIVITY STEP 1: Calculate Standard Direct Labor Hours per tote Cutting Sewing Printing a Enter average number of hours worked per week per employee b. Number of weeks plant operates each year c. Number of employees for each activity d. Total Direct labor hours (DLH) per year (a*b*c) e. DLH per tote (Step 1d = # totes produced) Round to 4 decimal places STEP 2: Culculate Estimated Cutting Machine-llours (MIT) per tote a. Production capacity for ONE cutting machine DE b. Machine-hours per tote (1 = Step 2a amount) Round to 4 decimal places totes/MH MH/tote STEP 3: Calculate Machine-Hours used per year a. 95% of Total Cutting Direct-Labor Hours (from Step 1d) MH/year STEP 4: Calculate Predetermined Overhead Rate (PDOHR) and Standard MOH per tote a. Total Estimated Manufacturing Overhead (from Exhibit 1-B) b. Total machine-hours per year (from Step 3A) - Predetermined Overhead Rate (Step 4a -Step 4b) Round to 4 decimal places MH per MH u How of costs for that is the data from Lab 1 and the Company Description, students a PART 1: Using the data from Lab 1 and the ion, students determine standard costs for direct labor and for applied manufacturing overhead. T.O.T.E.S. head. T.O.T.E.S. uses machine hours in the direct materials, direct labor and for applied partment for allocating manufacturing overhead. Historical records sho torical records show the cutting machines operate ees. The plant operates 50 weeks per year. The for 95% of the hours worked by the cutting department on cut 150 totes each hour. On Exhibit 2-A, calculate the company has two cutting machines. Each machine can cut 150 totes each hour e for each activity in Step 1, calculate the estimated cutting standard number of direct labor hours (DLH) per tote for each activity in Step 1: calculate th machine hours (MH) per tote in Step 2; calculate the estimated total machine-hours ner vear calculate the plantwide manufacturing overhead rate in Step 4. Using this information, create a Standard Cost Card for totes in Exhibit 2-B. LCH!!! 2-A Calculate Stangare Direct Labor Hours, Machine Hours & Predetermined uverneagra T.O.T.E.S. CALCULATING STANDARD COSTS Forecasted Production per year 500,000 totes DIRECT LABOR ACTIVITY STEP 1: Calculate Standard Direct Labor Hours per tote Cutting Sewing Printing a Enter average number of hours worked per week per employee b. Number of weeks plant operates each year c. Number of employees for each activity d. Total Direct labor hours (DLH) per year (a*b*c) e. DLH per tote (Step 1d = # totes produced) Round to 4 decimal places STEP 2: Culculate Estimated Cutting Machine-llours (MIT) per tote a. Production capacity for ONE cutting machine DE b. Machine-hours per tote (1 = Step 2a amount) Round to 4 decimal places totes/MH MH/tote STEP 3: Calculate Machine-Hours used per year a. 95% of Total Cutting Direct-Labor Hours (from Step 1d) MH/year STEP 4: Calculate Predetermined Overhead Rate (PDOHR) and Standard MOH per tote a. Total Estimated Manufacturing Overhead (from Exhibit 1-B) b. Total machine-hours per year (from Step 3A) - Predetermined Overhead Rate (Step 4a -Step 4b) Round to 4 decimal places MH per MH u How of costs for that is the data from Lab 1 and the Company Description, students a PART 1: Using the data from Lab 1 and the ion, students determine standard costs for direct labor and for applied manufacturing overhead. T.O.T.E.S. head. T.O.T.E.S. uses machine hours in the direct materials, direct labor and for applied partment for allocating manufacturing overhead. Historical records sho torical records show the cutting machines operate ees. The plant operates 50 weeks per year. The for 95% of the hours worked by the cutting department on cut 150 totes each hour. On Exhibit 2-A, calculate the company has two cutting machines. Each machine can cut 150 totes each hour e for each activity in Step 1, calculate the estimated cutting standard number of direct labor hours (DLH) per tote for each activity in Step 1: calculate th machine hours (MH) per tote in Step 2; calculate the estimated total machine-hours ner vear calculate the plantwide manufacturing overhead rate in Step 4. Using this information, create a Standard Cost Card for totes in Exhibit 2-B
