Single Plantwide Factory Overhead Rate Kennedy Appliance Inc.'s Machining Department incurred $165,200 of factory overhead cost in producing hoses and valves. The two products consumed a total of 5,900 direct machine hours. Of that amount, hoses consumed 2,700 direct machine hours. Determine the total amount of factory overhead that should be allocated to hoses using machine hours as the allocation base. Single plantwide factory overhead rate Bach Instruments Inc, makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $140,400. Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit: Budgeted Production Direct Labor Hours Per Volume 3,000 units 0.6 Clarinets 1.6 Oboes 1.300 10 If required, round all per unit answers to the nearest cent. a. Determine the single plantvide overhead rate. per direct labor hour Flutes 500 b. Use the overhead rate in (s) to determine the amount of total and per-unit overhead allocated to each of the three products Total Per Unit Factory Overhead Cost Factory Overhead Cost Flutes Clarinets Oboes Total Multiple Production Department Factory Overhead Rate Method Handy Leather, Inc. produces three sizes of sports gloves: small, medium, and large. A glove patter is first stenciled onto leather in the Pattern Department. The stenciled patterns are then sent to the Cut and Sew Department, where the glove is cut and sewed together. Handy Leather uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead costs were budgeted as follows: Pattern Department overhead $125,400 Cut and Sew Department overhead 211,200 Total $336,600 D The direct labor estimated for each production department was as follows: Pattern Department 1,900 direct labor hours Cut and Sew Department 2.400 Total 4,300 direct labor hours Direct labor hours are used to allocate the production department overhead to the products. The direct labor hours per unit for each product for each production department were obtained from the engineering records as follows: Production Departments Small Glove Medium Glove Large Glove Pattern Department 0.00 0.05 0.06 Cut and Sew Department 0.0 0.10 0.12 Direct labor hours per unit 0.12 0.15 0.18 If required, round all per unit answers to the nearest cent. a. Determine the two production department factory overhead rates Pattern Department 1,900 direct labor hours Cut and Sew Department 2,400 Total 4,300 direct labor hours Direct labor hours are used to allocate the production department overhead to the products. The direct labor hours per unit for obtained from the engineering records as follows: Production Departments Small Glove Medium Glove Large Glove Pattern Department 0.04 0.05 0.06 Cut and Sew Department 0.08 0.10 0.12 Direct labor hours per unit 0.12 0.15 0.18 If required, round all per unit answers to the nearest cent. a. Determine the two production department factory overhead rates. per dih per dih Pattern Department Cut and Sew Department b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product Small glove per unit Medium glove per unit Large glove per unit identifying Activity Bases in an Activity-Based Cost System Comfort Foods Inc. uses activity-based costing to determine product costs. For each activity listed in the left column, select an appropriate activity base from the right column You may use items in the dropdown list more than once or not at all. Activity Activity Base Cafeteria Customer return processing Electric power Human resources Inventory control Invoice and collecting Machine depreciation Materials handling Order shipping Payroll Performance reports Production control Production setup Purchasing Quality control Quality control Sales order processing Activity-Based Costing and Customer Profitability Metro Electric manufactures power distribution equipment for commercial customers, such as hospitals and manufacturers Activity-based costing was used to determine customer profitability. Customer service activities were assigned to individual customers, using the following assumed customer service activities, activity base, and activity rate: Customer Service Activity Bid preparation Shipment Support standarditerus Support nonstandard items Activity Base Number of bed requests Number of shipments Number of standard items ordered Number of nonstandard items ordered Activity Rate $420 per request $90 per shipment $30 per std. item $180 per constd. item Assume that the company had the following gross profit information for three representative customers Customer Customer 1 Revenues $130,000 Cost of goods sold (81,900) Gross profit $48,100 Gross profit as a percent of sales Customer $210,000 (113.400) $96,600 46 $180,000 (90,000) $90,000 50 The administrative records indicated that the activity bases quantities for each customer were as follows: Customer 1 Customer Customer 3 15 40 60 Activity Base Number of bid requests Number of shipments Number of standard items ordered Number of nonstandard items ordered 25 55 50 20 35 52 6 65 RS a. Prepare a customer profitability report dated for the year ended December 31, 2013, showing (1) the operating income after customer service activities, (2) the gross profit as a percent of sales, and (3) the operating income after customer service activities as a percent of sales. Prepare the report with a column for each customer Round percentages to the nearest whole percent. Metroid Electric Customer Profitability Report For the Year Ended December 31, 2018 Customer 1 Customer 2 Customer 3 Revenues Cost of goods sold Gross profit Customer service activities: Bid preparation Shipment Support standard items Support nonstandard items