Question
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)
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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?
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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.
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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.
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