Please see attachment for questions 1-6. They are attached in a word document

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 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: Quarter First Direct materials Direct labor Manufa cturing overhead Total manufact uring costs (a) Number of units to be produced (b) Estimat ed unit product cost (a b) Second Third $ 280,000 $ 140,000 80,000 70,000 $ 210,000 40,000 20,000 60,000 240,000 216,000 204,000 ? $ 600,000 $ 396,000 $ 294,000 80,000 40,000 20,000 $ 7.50 $ 9.90 $ Fourth $ 14.70 $ ? 60,000 $ ? 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-a. Using the high-low method, estimate the fixed manufacturing overhead cost per quarter and the variable manufacturing overhead cost per unit. (Round the "Variable manufacturing overhead per unit" to 2 decimal places.) Fixed Manufaturing overhead cost ? Per quarter Variable manufacturing overhead ? Per unit 1-b. Compute the total manufacturing cost and unit product cost for the fourth quarter. (Round the "Unit product cost" to 2 decimal places.) Total manufacturing cost ? Unit Product cost ? 3. Estimate the total manufacturing overhead cost for the year and an annual predetermined overhead rate. (Round the "Predetermined overhead rate" to 2 decimal places.) Total Manufacturing overhead ? Predetermined overhead rate ? White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machinehours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Department Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Cutting Finishing 6,100 72,000 59,000 3,200 $ 390,000 $ 443,000 $ 3.00 - $ 4.75 Required: 1. Compute the predetermined overhead rate to be used in each department. (Round your answers to 2 decimal places.) Predetermined overheard Cutting Finishing ?Per MH Per DLH 2. Assume that the overhead rates you computed in (1) above are in effect. The job cost sheet for Job 203, which was started and completed during the year, showed the following: Department Direct labor-hours Cutting Finishing 4 19 Machine-hours Materials requisitioned Direct labor cost 80 $ 770 $ 36 4 $ 360 $ 180 Compute the total manufacturing cost assigned to Job 203. (Round your intermediate and final answers to 2 decimal places.) Total Manufacturing cost ? 3. Would you expect substantially different amounts of overhead cost to be charged to some jobs if the company used a plantwide overhead rate based on direct labor-hours instead of using departmental rates? No Yes Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead costs to jobs on the basis of machine-hours. At the beginning of the year, the company used a cost formula to estimate that it would incur $4,316,800 in manufacturing overhead cost at an activity level of 568,000 machine-hours. The company spent the entire month of January working on a large order for 8,100 custom made machined parts. The company had no work in process at the beginning of January. Cost data relating to January follow: a. Raw materials purchased on account, $313,000. b. Raw materials requisitioned for production, $252,000 (80% direct and 20% indirect). c. Labor cost incurred in the factory, $177,000, of which $59,000 was direct labor and $118,000 was indirect labor. d. Depreciation recorded on factory equipment, $62,500. e. Other manufacturing overhead costs incurred, $85,600 (credit Accounts Payable). f. Manufacturing overhead cost was applied to production on the basis of 40,820 machine-hours actually worked during the month. g. The completed job was moved into the finished goods warehouse on January 31 to await delivery to the customer. (In computing the dollar amount for this entry, remember that the cost of a completed job consists of direct materials, direct labor, and applied overhead.) Required: 1. Prepare journal entries to record items (a) through (f) above. [Ignore item (g) for the moment.] (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) 1. Raw materials purchased on account, $313,000. 2. Raw materials requisitioned for production, $252,000 (80% direct and 20% indirect). 3. Labor cost incurred in the factory, $177,000, of which $59,000 was direct labor and $118,000 was indirect labor. 4. Depreciation recorded on factory equipment, $62,500. 5. Other manufacturing overhead costs incurred, $85,600 (credit Accounts Payable). 6. Manufacturing overhead cost was applied to production on the basis of 40,820 machine-hours actually worked during January. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant items from your journal entries to these T-accounts. (Do not round intermediate calculations.) Prepare a journal entry for item (g) above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) 1. The completed job was moved into the finished goods warehouse on January 31 to await delivery to the customer. (In computing the dollar amount for this entry, remember that the cost of a completed job consists of direct materials, direct labor, and applied overhead.) Compute the unit product cost that will appear on the job cost sheet. (Do not round intermediate calculations. Round your answer to 2 decimal places.) SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is implementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has no activity measure because it is an organization-sustaining activity. The following costs will be assigned using the activity-based costing system: Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses $ 940,000 370,000 250,000 280,000 140,000 440,000 Total cost $ 2,420,000 The distribution of resource consumption across the activity cost pools is as follows: Pickup and Delivery Travel Driver and guard wages 50% 35% Vehicle operating expense 70% 5% Vehicle depreciation 60% 15% Customer representative salaries and expenses 0% 0% Office expenses 0% 20% Administrative expenses 0% 5% Customer Service Other Totals 10 10% 5% % 0 2 10 0% % % 5 0 2 10 0% % % 5 0 1 10 90% % % 0 0 5 10 30% % % 0 0 3 10 60% % % 5 0 Required: Complete the first stage allocations of costs to activity cost pools. Travel Driver and guard wages Vehicle operating wages Delivery Service Other Totals Vehicle depreciation Customer representative salaries and expense Office Expense Administrative Expense Total cost Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below: Activity Cost Pool Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service Activity Measure Square feet of lawn Square feet of low maintenance beds Square feet of high maintenance beds Miles Number of customers The company has already completed its first stage allocations of costs and has summarized its annual costs and activity as follows: Activity Cost Pool Caring for lawn Estimated Overhead Cost Expected Activity $ 79,400 Caring for garden beds-low maintenance $ 32,000 Caring for garden beds-high maintenance Travel to jobs Customer billing and service $ 57,330 $ $ 5,000 10,300 165,000 square feet of lawn square feet of low 27,000 maintenance beds square feet of high 21,000 maintenance beds 18,000 miles 34 customers Required: Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.) Mercer Asbestos Removal Company removes potentially toxic asbestos insulation and related products from buildings. There has been a long-simmering dispute between the company's estimator and the work supervisors. The on-site supervisors claim that the estimators do not adequately distinguish between routine work such as removal of asbestos insulation around heating pipes in older homes and nonroutine work such as removing asbestos-contaminated ceiling plaster in industrial buildings. The on-site supervisors believe that nonroutine work is far more expensive than routine work and should bear higher customer charges. The estimator sums up his position in this way: \"My job is to measure the area to be cleared of asbestos. As directed by top management, I simply multiply the square footage by $2.80 to determine the bid price. Since our average cost is only $2.58 per square foot, that leaves enough cushion to take care of the additional costs of nonroutine work that shows up. Besides, it is difficult to know what is routine or not routine until you actually start tearing things apart.\" To shed light on this controversy, the company initiated an activity-based costing study of all of its costs. Data from the activity-based costing system follow: Activity Cost Pool Removing asbestos Estimating and job setup Working on nonroutine jobs Other (costs of idle capacity and organization-sustaining costs) Activity Measure Thousands of square feet Number of jobs Number of nonroutine jobs Total Activity 850 thousand square feet 400 jobs 100 nonroutine jobs None Note: The 100 nonroutine jobs are included in the total of 400 jobs. Both nonroutine jobs and routine jobs require estimating and setup. Costs for the Year Wages and salaries Disposal fees Equipment depreciation On-site supplies Office expenses Licensing and insurance Total cost $ 400,000 791,000 96,000 60,000 300,000 500,000 $ 2,147,000 Distribution of Resource Consumption Across Activities Wages and salaries Disposal fees Equipment depreciation On-site supplies Office expenses Licensing and insurance Removing Asbestos 60% 60% 40% 60% 10% 30% Working on Estimating Nonroutine and Job Setup Jobs 10% 20% 0% 40% 5% 25% 25% 15% 35% 25% 0% 50% Other 10% 0% 30% 0% 30% 20% Total 100% 100% 100% 100% 100% 100% Perform the first-stage allocation of costs to the activity cost pools Removing Asbetos Wages and salaries Disposal fees Equipment depreciation On-site supplies Office expense Licensing and insurance Total cost Estimating and Job setup Working on Non routine jobs Other Total 2. Using the activity rates you have computed, determine the total cost and the average cost per thousand square feet of each of the following jobs according to the activity-based costing system. (Round the "Average cost" to 2 decimal places.) a. A routine 1,000-square-foot asbestos removal job. b. A routine 2,000-square-foot asbestos removal job. c. A nonroutine 2,000-square-foot asbestos removal job