Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE ANSWER ALL QUESTIONS AND SHOW YOUR WORK! Walnut Systems produces two different products, Product A, which sells for $124 per unit, and Product B,

PLEASE ANSWER ALL QUESTIONS AND SHOW YOUR WORK!

Walnut Systems produces two different products, Product A, which sells for $124 per unit, and Product B, which sells for $196 per unit, using three different activities: Design, which uses Engineering Hours as an activity driver; Machining, which uses machine hours as an activity driver; and Inspection, which uses number of batches as an activity driver. The cost of each activity and usage of the activity drivers are as follows:

Cost

Usage by Product A

Usage by Product B

Design (Engineering Hours)

$

132,729

382

504

Machining (Machine Hours)

$

232,267

1,984

3,312

Inspection (Batches)

$

88,089

365

641

Determine the indirect costs assigned to Product A.

Round your final answer to the nearest dollar. (Do not round any intermediate calculations, only the final answer)

---------------------

Parker Company makes custom chef aprons. Parker has the following costs in its manufacturing company related to labor.

Wages paid to seamstresses

$12,873

Wages paid to sales team

15,473

Wages paid to cutters

11,766

Wages paid to the seamstress supervisor

16,721

Office managers salary

18,050

Sales Commissions

5,260

What are Parker Company's direct labor costs?

---------------------

Solo Manufacturing company applies manufacturing overhead on the basis of machine hours. At the beginning of the year, the company estimated its total overhead cost to be $157,400 and machine hours to be 10,400. Actual manufacturing overhead was $113,200 and actual machine hours was 9,900.

Compute the applied manufacturing overhead.

----------------

Amy Andrews is a CPA who works as a managerial accounting consultant for a variety of firms. To determine her hourly rate, Amy uses a cost-plus pricing system, which she updates each year.

The hourly cost of her assistant (including taxes and benefits) is $13, the hourly cost of her office space is $3, the hourly cost of her marketing and other overhead materials is $3, and Amy's own hourly salary (including taxes and benefits) is $84. Amy adds a 20% premium to her costs.

What is her hourly rate using a cost-plus pricing strategy? Round your answer to the nearest dollar.

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

Step: 3

blur-text-image

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

Auditing Theory And Practice

Authors: Jerry R. Strawser, Robert H. Strawser, Roger H. Hermanson

9th Edition

0873939336, 9780873939331

More Books

Students also viewed these Accounting questions