Ask question

Ask question

All categories

3 years ago

8

Linger Products uses a two-stage allocation method to assign costs to its products. The following information has been provided

for March: Product 1 Product 2 Total Units 3,000 2,000 5,000 Machine hours 2,000 4,000 6,000 Direct labor hours 2,000 2,000 4,000 Direct materials $ 60,000 $ 60,000 $ 120,000 Direct labor 45,000 45,000 90,000 Manufacturing overhead Utilities (machine related) $ 3,000 Supplies (labor related) 8,000 Training (labor related) 20,000 Supervision (labor related) 17,000 Machine depreciation (machine related) 24,000 Lease on factory (machine related) 33,000 Miscellaneous (labor related) 5,000 Total manufacturing overhead $ 110,000 Required: (a) Allocate the manufacturing overhead to two cost pools: machine-related and labor-related. (b) Compute the predetermined overhead rate for the two pools, using machine hours and direct labor hours as the bases. (c) Compute the total costs of production for each of the two products.

1 answer:

podryga [215]3 years ago

7 0

Answer:

Instructions are listed below

Explanation:

Giving the following information:

The following information has been provided for March:

Product 1= 3,000

Product 2= 2,000

Total Units= 5,000

Machine hours

Product 1= 2,000

Product 2= 4,000

Total= 6,000

Direct labor hours

P1= 2,000

P2= 2,000

Total= 4,000

Direct labor:

P1= 45,000

P2= 45,000

Total= 90,000

Manufacturing overhead:

Utilities (machine related) $ 3,000

Supplies (labor related) 8,000

Training (labor related) 20,000

Supervision (labor related) 17,000

Machine depreciation (machine related) 24,000

Lease on factory (machine related) 33,000

Miscellaneous (labor related) 5,000

Total manufacturing overhead $ 110,000

A) Machine related:

Utilities= 3,000

Machine depreciation= 24,000

Lease on factory= 33,000

Total= 60,000

Labor-related:

Supplies (labor related) 8,000

Training (labor related) 20,000

Supervision (labor related) 17,000

Miscellaneous (labor related) 5,000

Total= 50,000

B) Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Machine:

Estimated manufacturing overhead rate= 60,000/6000= $10 per machine hour

Labor:

Estimated manufacturing overhead rate= 50,000/4000= $12.5 per direct labor hour

C)

Product 1:

Direct material= 60,000

Direct labor= 45,000

MOH= (10*2000) + (12.5*2000)= $45,000

Total= 150,000

Product 2:

Direct material= 60,000

Direct labor= 45,000

MOH= (10*4000) + (12.5*2000)= 65,000

Total= 170,000

You might be interested in

A two-year bond with par value $1,000 making annual coupon payments of $99 is priced at $1,000.

iVinArrow [24]

Answer:

(a) 9.9%

(b) 10.09%

The further explanation is given below.

Explanation:

The given values are:

Coupon payment

= $99

Price

= $1,000

(a)

The Yield to maturity (YTM) will be:

= $\frac{C+\frac{F-P}{n} }{\frac{F+P}{2} }$

where,

C = Coupon payment

P = Price

n = years to maturity

F = Face value

On putting the estimated values is the above formula, we get

⇒ $99+\frac{0}{1000}$

⇒ $.099$

⇒ $9.9$ %

(b)

Although the 1st year coupon was indeed reinvested outside an interest rate of r%, cumulative money raised will indeed be made at the end of 2nd year.

= $[99\times (1 + r)] + 1,099$

Came to the realization compound YTM is therefore a function of r, as is shown throughout the table below:

Rate (r) Total proceeds Realized YTM ( $(\frac{proceeds}{1000} )^{.5} - 1$ )

7.9% 1205.8 9.8%

9.9% 1207.8 9.9%

11.9% 1209.8 9.99%

Now,

Overall proceeds realized YTM:

= $\frac{proceeds}{1000} -18 \ percent \ 1,\frac{2081208}{1000} - 1$

= $0.0991$

= $9.91 \ percent \ 10 \ percent \ 1,\frac{2101210}{1000}- 1$

= $0.1000$

= $10.00 \ percent \ 12 \ percent \ 1,\frac{2121212}{1000}-1$

= $0.1009$

= $10.09$ %

6 0

3 years ago

A government policy that sets the highest price that can be charged for a good or service is a __________.

trasher [3.6K]

Answer:

B. price ceiling.

A government policy that sets the highest price that can be charged for a good or service is a price ceiling.

3 0

3 years ago

Village Bank has $310 million worth of assets with a duration of 12 years and liabilities worth $248 million with a duration of

vitfil [10]

Answer:

2129 futures contracts to be sold

Explanation:

Asset worth = $310 million

Asset duration = 12 years

liabilities = $248 million

Liabilities duration = 5 years

T-bond futures contracts = 104-20 (30nds)

% of assets = 310 / 248 =

<u>Determine how many futures contracts Village Bank will sell to fully hedge the balance </u>

Number of Contracts = -[Assets * (Asset Duration – (Liabilities Duration * % of Assets) / (Duration * Contract Value)]

= - [ 310 * ( 12 - ( 5 * (310/248)) / ( 8 * ( 104 + ( 20/30)) ]

= - [ 310 * ( 12 - 6.25 ) / ( 8 * 104.6667 ) ]

= - [ 310 * 5.75 / 837.3336 ]

= - 2.12878 * 1000

= 2128.78 ≈ 2129 ( number of futures contracts to be sold )

5 0

3 years ago

rusak2 [61]

Bitcoin, Equal Dollars, Ithaca Hours, Starbucks Stars, Amazon Coins, Sweat.

8 0

3 years ago

Which of the following statements about FDIC-insured accounts is correct?

Sliva [168]

<span>FDIC insures deposits up to $250,000 per person per bankAll credit unions and retail banks provide FDIC-insured accounts,Both A & B <span>Neither A nor B</span></span>

7 0

3 years ago

Read 2 more answers