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babymother [125]
3 years ago
10

ZZ Inc. uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assemb

ly and Sanding. The Assembly Department uses a departmental overhead rate of $60 per machine hour, while the Sanding Department uses a departmental overhead rate of $30 per direct labor hour. Job 600 used the following direct labor hours and machine hours in the two departments: Actual results..................Assembly Department..........Sanding Department Direct labor hours used...................9..........................................6 Machine hours used.........................9.........................................7 The cost for direct labor is $35 per direct labor hour and the cost of the direct materials used by Job 600 is $1500. What was the total cost of Job 600 if ZZ Inc. used the departmental overhead rates to allocate manufacturing overhead?
Business
1 answer:
Sphinxa [80]3 years ago
8 0

Answer:

$2,745

Explanation:

Given that,

Direct labor hours used:

Assembly Department = 9

Sanding Department = 6

Machine hours used:

Assembly Department = 9

Sanding Department = 7

Cost for direct labor = $35 per direct labor hour

cost of the direct materials used = $1,500

Total cost of Job 600:

= Direct labor + Direct material + Assembly department overhead + Standard department overhead

= [(9 + 6) DLH × $35] + $1,500 + ($60 × 9) + ($30 × 6)

= $525 + $1,500 + $540 + $180

= $2,745

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Based on the constant demand assumption in the economic order quantity (EOQ) model, the average cycle inventory is: Question 20
irina [24]

Answer:

c. half of the order quantity

Explanation:

Based on the constant demand assumption in the economic order quantity (EOQ) model, the average cycle inventory is <u>half of the order quantity</u>

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Q = EOQ = \sqrt{2*D*S/ H} where  D = Demand unit, S = Order cost and H = Holding cost

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2 years ago
company manufactures pillows. the operating budget was based on production of ​pillows, with ​machine-hours allowed per pillow.
MatroZZZ [7]

a. The budgeted variable overhead is $468,750.

b. The variable overhead spending variance is $38,100 Favorable

c. The variable overhead efficiency variance is $30,000 Favorable

<h3>What is variable overhead?</h3>

Variable overhead is a cost of running a business that varies with operational activity. Variable overheads rise and fall in lockstep with production output. Overheads, such as administrative overhead, are often a set cost.

The variable manufacturing overhead controllable variance reflects how effectively the company stuck to its budget. The difference between the planned fixed overhead at normal capacity and the standard fixed overhead for the actual units produced is the fixed factory overhead volume variance.

a. The budgeted variable overhead for 2017 = Budgeted hours * Variable overhead rate per hour

= (25000*0.75)*$25 = $468,750

b. Variable overhead spending variance = (SR - AR) * AH = ($25 - $23) * 19050 = $38,100 Favorable

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4 0
1 year ago
The kenosha company has three product lines of beer mugslong dash​a, ​b, and clong dashwith contribution margins of $ 5​, $ 4​,
Tema [17]

Answer:

break even point in units:

  • a = 11,700
  • b = 46,800
  • c = 35,100

Explanation:

beer mugs          contribution margin         expected sales

a                                $5                                   25,000

b                                $4                                  100,000

c                                $3                                   50,000

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if the sales proportion remains the same, we can assume a bundle of products = 1a + 4b + 3c (1 for every 25,000 units) whose contribution margin = $5 + $16 + $9 = $30

break even point = fixed costs / bundle's contribution margin = $351,000 / $30 = 11,700 bundles

break even point in units:

a = 11,700

b = 11,700 x 4 = 46,800

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