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2 years ago

Plantwide Overhead Rate, Activity-Based Costing, Job Costs

Business

1 answer:

lisov135 [29]2 years ago

7 0

Answer:

Foto-FAst Copy Shop

1. Predetermined overhead rate = $4 per direct labor hour

2. Predetermined overhead rate = $11 per direct labor hour

3. Total job cost (Rick Anselm):

May 20 = $26.00

June 20 = $30.00

4. The two overhead rates:

a. $26.40 per machine hour

b. $3.71 per direct labor hour

Explanation:

a) Data and Calculations:

Average overhead per year prior to the purchase of the new equipment = $30,400

Average overhead per year after the installation of new equipment = $83,600

Budgeted direct labor hours for the year = 7,600

Wage rate = $9 per hour

1. Predetermined overhead rate prior to the purchase of the new equipment

= $4 ($30,400/7,600)

2. Predetermined overhead rate after the new equipment was purchased

= $11 ($83,600/7,600)

3. Cost of Rick Anselm's job on May 20:

Materials ($0.03 * 600) $18.00

Labor ($9 * 36/60) 5.40

Overhead applied 2.40 ($4 * 36/60)

Total cost of job = $25.80 = $26

Cost of Rick Anselm's job on June 20:

Materials ($0.03 * 600) $18.00

Labor ($9 * 36/60) 5.40

Overhead applied 6.60 ($11 * 36/60)

Total cost of job = $30.00

4. Overhead Rates Photocopying Computer Printing Total

Overhead cost $55,440 $28,160 $83,600

Machine hours 2,100

Direct labor hours 7,600

Overhead rates $26.40 $3.71

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Zigzag Manufacturing has just hired a new controller, Leslie Demorest. During her first week on the job, Leslie was asked to est

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Answer:

Zigzag Manufacturing

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Explanation:

An effective budget should be able to forecast and track revenues and expenses, which are received and incurred in pursuit of business goals and projections. An effective budget ensures that those who implement the projections contained in the budget remain motivated. The idea of adjusting previous expenses with inflation is not an effective budgeting strategy.

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The acquisition cost of a certain raw material changes frequently. The book value of the inventory of this material at year end

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Solution:

The following are the correct and incorrect options

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Answer:

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