Question
Troy Electronics Company calculates its predetermined overhead rate on a quarterly basis. The following estimates were made for the current year. Estimated Manufacturing Overhead Estimated
Troy Electronics Company calculates its predetermined overhead rate on a quarterly basis. The following estimates were made for the current year.
|
| Estimated Manufacturing Overhead |
| Estimated Direct-Labor Hours |
| Quarterly Predetermined Overhead Rate (per direct-labor hour) | ||||||||
| First quarter |
| $ | 100,000 |
|
|
| 25,000 |
|
|
| ? |
| |
| Second quarter |
|
| 80,000 |
|
|
| 16,000 |
|
|
| ? |
| |
| Third quarter |
|
| 37,500 |
|
|
| 12,500 |
|
|
| ? |
| |
| Fourth quarter |
|
| 84,000 |
|
|
| 14,000 |
|
|
| ? |
| |
| Total |
| $ | 301,500 |
|
|
| 67,500 |
|
|
|
|
| |
The firms main product, part number A200, requires $200 of direct material and 20 hours of direct labor per unit. The labor rate is $20 per hour.
Required: 1. Calculate the firms quarterly predetermined overhead rate for each quarter.
- Determine the cost of one unit of part number A200 if it is manufactured in January versus April. (Q9
- Suppose the companys pricing policy calls for a 10 percent markup over cost. Calculate the price to be charged for a unit of part number A200 if it is produced in January versus April.
- 4. Calculate the companys predetermined overhead rate for the year if the rate is calculated annually. (Round your answer to 2 decimal places).
- 5. Based on your answer to requirement 4, what is the cost of a unit of part number A200 if it is manufactured in January? In April? (Round intermediate calculations and final answers to 2 decimal places.)
- What is the price of a unit of part A200 if the predetermined overhead rate is calculated annually? (Round intermediate calculations and final answers to 2 decimal places.)
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Modern Advanced Accounting In Canada
Authors: Hilton Murray, Herauf Darrell
7th Edition
1259066487, 978-1259066481
