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part 4
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 Direct materials Direct labor Manufacturing overhead Total manufacturing costs Number of units to be produced (6) Estimated unit product cast (a) (b) Quarter First Second Third Fourth $200,000 $100,000 $50,000 $150,000 120,000 60,000 000 90,000 220,000 196,00 184,000 5540,000 SE58,000 $260,000 21 120,000 60,000 30,00 90,080 $ 4.50 5.93 5 8.50 5 Management finds the variation in quarterly unit product costs to be confusing and difficult to work with 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 vanable manufacturing overhead cost per unit is so 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 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 Yates, calculate the unit product cost for all units produced during the year Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Required 4 Assuming the estimated variable manufacturing overhead cost per unit is $0.40. what must be the estimated total fixed manufacturing overhead cost per quarter? Fund manufacturing overhead cost Required 2 > 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: Direct materials Direct labor Manufacturing overhead Total manufacturing costs() Number of units to be produced (b) Estimated unit product cost (6) + (b) Quarter Second Third Fourth $200,000 $100,000 $50,000 $150,000 120,000 60,000 30,000 90,000 220,000 196,000 184,000 2 $540,000 $356,000 $264.000 $ 2 120,000 60,000 30,000 90,000 4.50 5 5.93 $ 8.805 Management finds the variation in quarterly unit product costs to be confusing and difficult to work with. 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 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 unit product cost 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 complete this question to entering your answers in the tabs below Required: Requida 2 Required Required* Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? (Do not round the intermediate calculations and round the Unit product cost' to 2 decimal . Un product cou 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 Direct materials Direct labor Manufacturing overhead Total manufacturing costs () Number of units to be produced (b) Istimated unit product cost (a(b) Quarter First Second Third Fourth $200,000 $100,000 $50,000 $150,000 120,000 60.000 30.000 90,000 220.000 196,000 184.00 5540,000 350.000 $264,400 120,000 60,000 30.000 90,000 $ 4.50 5.93 $ 3.80 $ Management finds the variation in quarterly unit product costs to be confusing and difficult to work with. 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: som the estimated variable manufacturing overhead cost per unit is $040, 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 quartet 3 What is causing the estimated unit product cost to fluctuate from one quarter to the next? 4. Ascoming the company computes on predetermined overhead rote for the year 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 Required Recured Required Hequired b What is causing the estimated unit product cost to Muctuate from one quarter to the next? One fixed portion of the manufacturing overhead cont is causing the unit product contato cut the unit product continentes as the favor of production de ses med overhead is spread over wer unit The fed portion of the matching overhead cost is causing the unit product costs to fucate The unit product cost decreases as the level of prodon de bechod vidis vel fewer The variable portion of the manufacturing overhead coat is causing the unit products to fluctuate the product cost in the favor of production because there overhead is spread over fewer The variable portion of me manufacturing overhead coat is causing the unt products to fluctuate. The unit product cost decreases as the infor production decrease because the variabile overhead is sor advertewer 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. Direct materials Direct labor Hanufacturing overhead Total manufacturing costs (a) Number of units to be produced (b) Estimated unit product cost (a) (b) Quarter First Second Third Fourth $200,000 $100,000 $ 50,000 $150,000 120,000 68,000 30,000 90,000 220,0ee 196,000 184,000 $548,309 5356,000 $264,000 $ 120,000 50.000 30,000 90,000 4.50 $ 3.88 $ Management finds the variation in quarterly unit product costs to be confusing and difficult to work with 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 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 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Required 4 Assuming the company computes on predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year. (not round the intermediate calculations and round the unit product cout" to 2 decimal places.) Un producto
