T.O.T.E.S. CASE STUDY - QUINN'S POND All information is found in the Company Description and Information section and Lab 1. EXHIBIT 2-A: Calculate Standard Direct Labor Hours, Machine Hours & Predetermined Overhead Rate T.O.T.E.S. CALCULATING STANDARD COSTS Forecasted Production per year 530,000 totes DIRECT LABOR ACTIVITY STEP 1: Calculate Standard Direct Labor Hours per tote Cutting Sewing Printing a. Enter average number of hours worked per week per employee b. Number of weeks plant operates each year c. Number of employees for each activity d. Total Direct labor hours (DLH) per year (a*b*c) e. DLH per tote (Step 1d = # totes produced) Round to 4 decimal places STEP 2: Calculate Estimated Cutting Machine-Hours (MH) per tote a. Production capacity for ONE cutting machine b. Machine-hours per tote (1 = Step 2a amount) ound to 4 decimal places totes/MH MH/tot STEP 3: Calculate Machine-Hours used per year a. 95% of Total Cutting Direct-Labor Hours (from Step 1d) MH/year STEP 4: Calculate Predetermined Overhead Rate (PDOHR) and Standard MOH per tote a. Total Estimated Manufacturing Overhead (from Exhibit 1-B) $ b. Total machine-hours per year (from Step 3A) c. Predetermined Overhead Rate (Step 4a - Step 4b) Round to 4 decimal places $ MH per MH 10 T.O.T.E.S. CASE STUDY - QUINN'S POND Calculate the standard cost for each tote for the current year's production level using information from Exhibit 1-A and 1-B. Round all standard costs to four (4) decimal places. EXHIBIT 2-B: Standard Cost Card T.O.T.E.S. CALCULATING STANDARD COSTS Forecasted Production per year 530,000 totes Total Cost (for 530,000 totes) Standard Cost (cost per tote) DIRECT MATERIALS Fabric $ $ Webbing $ $ Total Direct Materials Cost per Tote (Round to 4 decimal places) $ DIRECT LABOR Cutting $ $ Sewing $ $ Printing $ $ Total Direct Labor Cost per Tote (Round to 4 decimal places) MANUFACTURING OVERHEAD $ Estimated MOH Costs (Round per tote to 4 decimal places) $ $ Total Product Cost per Tote (Round to 4 decimal places) $ Costs for each job are tracked using a Job Cost Record (Exhibit 2-C). The Job Cost Record is found after copies of the Materials Requisition form and Labor Time Records for the period. Use the information on these documents to complete the Job Cost Record for Phineas Phil's Specialty Market order of 1,000 red grocery totes with logos. 11 T.O.T.E.S. CASE STUDY - QUINN'S POND Use the data from the following company documents to complete the Job Cost Record for Job #2543. Any missing data will be found in the Company Description and Information section and Lab 1. On the labor time records the employees worked on more than one job, make sure you only include the hours for Job #2543. Materials Requisition Number: # 450 Date: 5/24/20XX Job #: 2543 Part # Unit Unit Cost Amount Description Red Cordura Fabric Black webbing FA223 W3 yard Quantity 335 1,600 yard Total $ Labor Time Record Week: 5/23-5/29 Record #: 299 Employee: Jacey Mayfield Hourly Wage Rate: $16.00 Department: Cutting Date Job Number Start Time 5/23 2210 8:30 5/23 2518 15:30 5/25 2543 7:30 5/26 2543 13:00 5/27 2468 13:15 End Time 13:30 17:00 12:00 16:30 17:00 Hours Cost 5.00 $ 80.00 1.50 $ 24.00 4.50 $ 72.00 3.50 $ 56.00 $ 60.00 3.75 12 T.O.T.E.S. Case Study - QUINN'S POND Name: JOB COSTING LAB 2 T.O.T.E.S. currently uses a job costing system to allocate costs to each job. Although their products are very similar, each customer requires a different logo on their custom tote. Furthermore, Tonia and Tara have started experimenting with different sizes and lines of product in order to expand their market. Lab 2 has three parts - calculating standard costs, allocating costs to a specific job, and recording the flow of costs for that job. PART 1: Using the data from Lab 1 and the Company Description, students determine standard costs for direct materials, direct labor and for applied manufacturing overhead. T.O.T.E.S. uses machine hours in the cutting department for allocating manufacturing overhead. Historical records show the cutting machines operate for 95% of the hours worked by the cutting department employees. The plant operates 50 weeks per year. The company has two cutting machines. Each machine can cut 150 totes each hour. On Exhibit 2-A, calculate the standard number of direct labor hours (DLH) per tote for each activity in Step 1; calculate the estimated cutting machine hours (MH) per tote in Step 2; calculate the estimated total machine-hours per year in Step 3; and calculate the plantwide manufacturing overhead rate in Step 4. Using this information, create a Standard Cost Card for totes in Exhibit 2-B. PART 2: Costs for each job are tracked using a Job Cost Record (Exhibit 2-C). Copies of the Materials Requisition form and Labor Time Records have been copied so that students can complete the Job Cost Record for Job #2543. Complete the Materials Requisition document to calculate total cost of materials for Job #2543. All totes were completed but not shipped at the end of the month. PART 3: Using Exhibit 2-D, record the flow of costs for Job #2543 through the company's inventory accounts (Raw Materials, Work in Process, Finished Goods) to Cost of Goods Sold when product is shipped. 9 T.O.T.E.S. CASE STUDY - QUINN'S POND All information is found in the Company Description and Information section and Lab 1. EXHIBIT 2-A: Calculate Standard Direct Labor Hours, Machine Hours & Predetermined Overhead Rate T.O.T.E.S. CALCULATING STANDARD COSTS Forecasted Production per year 530,000 totes DIRECT LABOR ACTIVITY STEP 1: Calculate Standard Direct Labor Hours per tote Cutting Sewing Printing a. Enter average number of hours worked per week per employee b. Number of weeks plant operates each year c. Number of employees for each activity d. Total Direct labor hours (DLH) per year (a*b*c) e. DLH per tote (Step 1d = # totes produced) Round to 4 decimal places STEP 2: Calculate Estimated Cutting Machine-Hours (MH) per tote a. Production capacity for ONE cutting machine b. Machine-hours per tote (1 = Step 2a amount) ound to 4 decimal places totes/MH MH/tot STEP 3: Calculate Machine-Hours used per year a. 95% of Total Cutting Direct-Labor Hours (from Step 1d) MH/year STEP 4: Calculate Predetermined Overhead Rate (PDOHR) and Standard MOH per tote a. Total Estimated Manufacturing Overhead (from Exhibit 1-B) $ b. Total machine-hours per year (from Step 3A) c. Predetermined Overhead Rate (Step 4a - Step 4b) Round to 4 decimal places $ MH per MH 10 T.O.T.E.S. CASE STUDY - QUINN'S POND Calculate the standard cost for each tote for the current year's production level using information from Exhibit 1-A and 1-B. Round all standard costs to four (4) decimal places. EXHIBIT 2-B: Standard Cost Card T.O.T.E.S. CALCULATING STANDARD COSTS Forecasted Production per year 530,000 totes Total Cost (for 530,000 totes) Standard Cost (cost per tote) DIRECT MATERIALS Fabric $ $ Webbing $ $ Total Direct Materials Cost per Tote (Round to 4 decimal places) $ DIRECT LABOR Cutting $ $ Sewing $ $ Printing $ $ Total Direct Labor Cost per Tote (Round to 4 decimal places) MANUFACTURING OVERHEAD $ Estimated MOH Costs (Round per tote to 4 decimal places) $ $ Total Product Cost per Tote (Round to 4 decimal places) $ Costs for each job are tracked using a Job Cost Record (Exhibit 2-C). The Job Cost Record is found after copies of the Materials Requisition form and Labor Time Records for the period. Use the information on these documents to complete the Job Cost Record for Phineas Phil's Specialty Market order of 1,000 red grocery totes with logos. 11 T.O.T.E.S. CASE STUDY - QUINN'S POND Use the data from the following company documents to complete the Job Cost Record for Job #2543. Any missing data will be found in the Company Description and Information section and Lab 1. On the labor time records the employees worked on more than one job, make sure you only include the hours for Job #2543. Materials Requisition Number: # 450 Date: 5/24/20XX Job #: 2543 Part # Unit Unit Cost Amount Description Red Cordura Fabric Black webbing FA223 W3 yard Quantity 335 1,600 yard Total $ Labor Time Record Week: 5/23-5/29 Record #: 299 Employee: Jacey Mayfield Hourly Wage Rate: $16.00 Department: Cutting Date Job Number Start Time 5/23 2210 8:30 5/23 2518 15:30 5/25 2543 7:30 5/26 2543 13:00 5/27 2468 13:15 End Time 13:30 17:00 12:00 16:30 17:00 Hours Cost 5.00 $ 80.00 1.50 $ 24.00 4.50 $ 72.00 3.50 $ 56.00 $ 60.00 3.75 12 T.O.T.E.S. Case Study - QUINN'S POND Name: JOB COSTING LAB 2 T.O.T.E.S. currently uses a job costing system to allocate costs to each job. Although their products are very similar, each customer requires a different logo on their custom tote. Furthermore, Tonia and Tara have started experimenting with different sizes and lines of product in order to expand their market. Lab 2 has three parts - calculating standard costs, allocating costs to a specific job, and recording the flow of costs for that job. PART 1: Using the data from Lab 1 and the Company Description, students determine standard costs for direct materials, direct labor and for applied manufacturing overhead. T.O.T.E.S. uses machine hours in the cutting department for allocating manufacturing overhead. Historical records show the cutting machines operate for 95% of the hours worked by the cutting department employees. The plant operates 50 weeks per year. The company has two cutting machines. Each machine can cut 150 totes each hour. On Exhibit 2-A, calculate the standard number of direct labor hours (DLH) per tote for each activity in Step 1; calculate the estimated cutting machine hours (MH) per tote in Step 2; calculate the estimated total machine-hours per year in Step 3; and calculate the plantwide manufacturing overhead rate in Step 4. Using this information, create a Standard Cost Card for totes in Exhibit 2-B. PART 2: Costs for each job are tracked using a Job Cost Record (Exhibit 2-C). Copies of the Materials Requisition form and Labor Time Records have been copied so that students can complete the Job Cost Record for Job #2543. Complete the Materials Requisition document to calculate total cost of materials for Job #2543. All totes were completed but not shipped at the end of the month. PART 3: Using Exhibit 2-D, record the flow of costs for Job #2543 through the company's inventory accounts (Raw Materials, Work in Process, Finished Goods) to Cost of Goods Sold when product is shipped. 9