ACG2071 Midterm

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Job 243 was recently completed. The following data have been recorded on its job cost sheet: Direct materials $ 57,870 Direct labor-hours 495 labor-hours Direct labor wage rate $ 11 per labor-hour Machine-hours 576 machine-hours Number of units completed 4,500 units The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $13 per machine-hour. Required: Compute the unit product cost that would appear on the job cost sheet for this job. (Round your answer to 2 decimal places.)

Cost Summary Direct materials $ 57,870 Direct labor ($11 per DLH × 495 DLHs) 5,445 Manufacturing overhead ($13 per MH × 576 MHs) 7,488 Total product cost $ 70,803 Unit product cost $15.73

In June, one of the processing departments at Furbush Corporation had ending work in process inventory of $12,800. During the month, $412,000 of costs were added to production and the cost of units transferred out from the department was $434,000. In the department's cost reconciliation report for January, the cost of beginning work in process inventory for the department would be:

Cost of beginning work in process inventory = Cost of ending work in process inventory + Cost of units transferred out - Costs added to production = $12,800 + $434,000 - $412,000 = $34,800

The following accounts are from last year's books at Sharp Manufacturing: Raw Materials Bal 0 (b) 157,000 (a) 171,500 14,500 Work In Process Bal 0 (f) 522,000 (b) 133,500 (c) 171,000 (e) 217,500 0 Finished Goods Bal 0 (g) 475,000 (f) 522,000 47,000 Manufacturing Overhead (b) 23,500 (e) 217,500 (c) 27,500 (d) 159,000 7,500 Cost of Goods Sold (g) 475,000 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of cost of goods manufactured for the year?

Cost of goods manufactured is represented by the debit to Finished Goods and the credit to Work in Process (entry f) = $522,000 cost of goods manufactured $522,000

Haack Inc. is a merchandising company. Last month the company's cost of goods sold was $61,900. The company's beginning merchandise inventory was $17,600 and its ending merchandise inventory was $26,200. What was the total amount of the company's merchandise purchases for the month?

Cost of goods sold = Beginning merchandise inventory + Purchases - Ending merchandise inventory $61,900 = $17,600 + Purchases - $26,200 Purchases = $61,900 - $17,600 + $26,200 = $70,500

Garza Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Casting Customizing Machine-hours 30,000 12,000 Direct labor-hours 9,000 10,000 Total fixed manufacturing overhead cost $ 135,000 $ 47,000 Variable manufacturing overhead per machine-hour $ 1.90 Variable manufacturing overhead per direct labor-hour $ 4.70 The estimated total manufacturing overhead for the Customizing Department is closest to:

Customizing Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per direct labor-hour × Total direct labor-hours in the department) = $47,000 + ($4.70 per direct labor-hour × 10,000 direct labor-hours) = $47,000 + $47,000 = $94,000

Serfass Corporation's contribution format income statement for July appears below: Sales $ 224,700 Variable expenses 101,115 Contribution margin 123,585 Fixed expenses 39,550 Net operating income $ 84,035 The degree of operating leverage is closest to:

Degree of operating leverage = Contribution margin ÷ Net operating income = $123,585 ÷ $84,035 = 1.47

In May direct labor was 30% of conversion cost. If the manufacturing overhead for the month was $114,100 and the direct materials cost was $28,200, the direct labor cost was:

Direct labor = 0.30 × Conversion cost Manufacturing overhead = $114,100 Conversion cost = Direct labor + Manufacturing overhead Conversion cost = Direct labor + $114,100 Conversion cost = (0.30 × Conversion cost) + $114,100 0.70 × Conversion cost = $114,100 Conversion cost = $114,100 ÷ 0.70 Conversion cost = $163,000 Direct labor = 0.30 × Conversion cost = 0.30 × $163,000 = $48,900

During the month of May, direct labor cost totaled $14,960 and direct labor cost was 40% of prime cost. If total manufacturing costs during May were $78,800, the manufacturing overhead was:

Direct labor cost = $14,960 Direct labor cost = 0.40 × Prime cost Total manufacturing cost = $78,800 Direct labor cost = 0.40 × Prime cost Prime cost = Direct labor cost ÷ 0.40 Prime cost = $14,960 ÷ 0.40 = $37,400 Total manufacturing cost = Prime cost + Manufacturing overhead cost $78,800 = $37,400 + Manufacturing overhead cost Manufacturing overhead cost = $41,400

The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $2,127. A total of 32 direct labor-hours and 256 machine-hours were worked on the job. The direct labor wage rate is $20 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $27 per machine-hour. The total cost for the job on its job cost sheet would be:

Direct materials $ 2,127 Direct labor (32 direct labor-hours × $20 per direct labor-hour) 640 Overhead (256 machine-hours × $27 per machine-hour) 6,912 Total manufacturing cost for Job 450 $9,679

Lagle Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 4.55 Direct labor $ 3.30 Variable manufacturing overhead $ 1.25 Fixed manufacturing overhead $ 11,000 Sales commissions $ 1.30 Variable administrative expense $ 0.35 Fixed selling and administrative expense $ 4,200 If 6,000 units are sold, the variable cost per unit sold is closest to:

Direct materials $ 4.55 Direct labor 3.30 Variable manufacturing overhead 1.25 Sales commissions 1.30 Variable administrative expense 0.35 Variable cost per unit sold $10.75

Kesterson Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.35 Direct labor $ 3.40 Variable manufacturing overhead $ 1.30 Fixed manufacturing overhead $ 16,900 Sales commissions $ 1.40 Variable administrative expense $ 0.70 Fixed selling and administrative expense $ 5,200 The incremental manufacturing cost that the company will incur if it increases production from 6,500 to 6,501 units is closest t

Direct materials $ 6.35 Direct labor 3.40 Variable manufacturing overhead 1.30 Incremental manufacturing cost $11.05

Dake Corporation's relevant range of activity is 2,300 units to 6,500 units. When it produces and sells 4,400 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.40 Direct labor $ 3.20 Variable manufacturing overhead $ 1.15 Fixed manufacturing overhead $ 3.00 Fixed selling expense $ 0.75 Fixed administrative expense $ 0.45 Sales commissions $ 0.55 Variable administrative expense $ 0.45 For financial reporting purposes, the total amount of product costs incurred to make 4,400 units is closest to:

Direct materials $ 6.40 Direct labor 3.20 Variable manufacturing overhead 1.15 Variable manufacturing cost per unit $ 10.75 Total variable manufacturing cost ($10.75 per unit x 4,400 units produced) $ 47,300 Total fixed manufacturing overhead cost ($3.00 per unit x 4,400 units produced) 13,200 Total product (manufacturing) cost $60,500

Pedregon Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.50 Direct labor $ 3.40 Variable manufacturing overhead $ 1.30 Fixed manufacturing overhead $ 18,700 Sales commissions $ 0.50 Variable administrative expense $ 0.55 Fixed selling and administrative expense $ 5,200 If 5,500 units are sold, the total variable cost is closest to:

Direct materials $ 6.50 Direct labor 3.40 Variable manufacturing overhead 1.30 Sales commissions 0.50 Variable administrative expense 0.55 Variable cost per unit sold $ 12.25 Variable cost per unit sold (a) $ 12.25 Number of units sold (b) 5,500 Total variable costs (a) × (b) $67,375

Paolucci Corporation's relevant range of activity is 6,300 units to 13,500 units. When it produces and sells 9,900 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.75 Direct labor $ 3.65 Variable manufacturing overhead $ 1.65 Fixed manufacturing overhead $ 2.90 Fixed selling expense $ 0.95 Fixed administrative expense $ 0.65 Sales commissions $ 0.90 Variable administrative expense $ 0.55 If 8,900 units are sold, the variable cost per unit sold is closest to:

Direct materials $ 6.75 Direct labor 3.65 Variable manufacturing overhead 1.65 Sales commissions 0.90 Variable administrative expense 0.55 Variable cost per unit sold $13.50

Weatherhead Inc. has provided the following data for the month of March. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Work In Process Finished Goods Cost of Goods Sold Total Direct materials $ 4,240 $ 14,720 $ 41,680 $ 60,640 Direct labor 10,040 29,440 83,840 123,320 Manufacturing overhead applied 5,830 11,110 34,980 51,920 Total $ 20,110 $ 55,270 $ 160,500 $ 235,880 Manufacturing overhead for the month was overapplied by $4,200. The Corporation allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied during the month in those accounts. The work in process inventory at the end of March after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to: (Round intermediate percentage computations to the nearest whole percent.)

Ending work in process inventory after allocation of overapplied manufacturing overhead = $20,110 − [($5,830/$51,920) × $4,200] = $20,110 − (11% × $4,200) = $19,648

Brothern Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the most recently completed year appear below: Estimates made at the beginning of the year: Estimated machine-hours 43,000 Estimated variable manufacturing overhead $ 6.92 per machine-hour Estimated total fixed manufacturing overhead $ 1,090,050 Actual machine-hours for the year 40,900 The predetermined overhead rate for the recently completed year was closest to:

Estimated total manufacturing overhead = $1,090,050 + ($6.92 per machine-hour × 43,000 machine-hours) = $1,387,610 Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated total amount of the allocation base = $1,387,610 ÷ 43,000 machine-hours = $32.27 per machine-hour

Longobardi Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the labor-hours for the upcoming year at 30,600 labor-hours. The estimated variable manufacturing overhead was $6.18 per labor-hour and the estimated total fixed manufacturing overhead was $626,076. The actual labor-hours for the year turned out to be 27,100 labor-hours. The predetermined overhead rate for the recently completed year was closest to:

Estimated total manufacturing overhead = $626,076 + ($6.18 per labor-hour × 30,600 labor-hours) = $815,184 Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated total amount of the allocation base = $815,184 ÷ 30,600 labor-hours = $26.64 per labor-hour

Gilchrist Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine-hours for the upcoming year at 22,700 machine-hours. The estimated variable manufacturing overhead was $5.05 per machine-hour and the estimated total fixed manufacturing overhead was $633,784. The predetermined overhead rate for the recently completed year was closest to:

Estimated total manufacturing overhead = $633,784 + ($5.05 per machine-hour × 22,700 machine-hours) = $748,419 Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated total amount of the allocation base = $748,419 ÷ 22,700 machine-hours = $32.97 per machine-hour

Meenach Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on 60,000 direct labor-hours, total fixed manufacturing overhead cost of $114,000, and a variable manufacturing overhead rate of $4.90 per direct labor-hour. Recently Job X387 was completed and required 170 direct labor-hours. Required: Calculate the amount of overhead applied to Job X387. (Do not round intermediate calculations.)

Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 30,200 Total fixed manufacturing overhead cost $ 120,800 Variable manufacturing overhead per machine-hour $ 6.00 Recently, Job T687 was completed with the following characteristics: Number of units in the job 10 Total machine-hours 40 Direct materials $ 710 Direct labor cost $ 1,410 The amount of overhead applied to Job T687 is closest to:

Mcewan Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on 26,000 direct labor-hours, total fixed manufacturing overhead cost of $195,000, and a variable manufacturing overhead rate of $2.10 per direct labor-hour. Job X941, which was for 50 units of a custom product, was recently completed. The job cost sheet for the job contained the following data: Total direct labor-hours 400 Direct materials $ 800 Direct labor cost $ 7,000 Required: Calculate the selling price for Job X941 if the company marks up its unit product costs by 20%. (Round your intermediate calculations and final answer to 2 decimal places.)

Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base) = $195,000 + ($2.10 per direct labor-hour × 26,000 direct labor-hours) = $195,000 + $54,600 = $249,600 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $249,600 ÷ 26,000 direct labor-hours = $9.60 per direct labor-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $9.60 per direct labor-hour × 400 direct labor-hours = $3,840 Direct materials $ 800 Direct labor 7,000 Manufacturing overhead applied 3,840 Total cost of Job X941 $ 11,640 Total cost of Job X941 (a) $ 11,640 Number of units (b) 50 Unit product cost (a) ÷ (b) $ 232.80 Unit product cost for Job X941 $ 232.80 Markup (20% × $232.80) 46.56 Selling price $279.36

Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Total direct labor-hours 76,000 Total fixed manufacturing overhead cost $ 235,600 Variable manufacturing overhead per direct labor-hour $ 2.00 Recently, Job P951 was completed with the following characteristics: Number of units in the job 25 Total direct labor-hours 100 Direct materials $ 870 Direct labor cost $ 7,600 The unit product cost for Job P951 is closest to: (Round your intermediate calculations to 2 decimal places.)

Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base) = $235,600 + ($2.00 per direct labor-hour × 76,000 direct labor-hours) = $235,600 + $152,000 = $387,600 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $387,600 ÷ 76,000 direct labor-hours = $5.10 per direct labor-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $5.10 per direct labor-hour × 100 direct labor-hours = $510 Direct materials $ 870 Direct labor 7,600 Manufacturing overhead applied 510 Total cost of Job P951 $ 8,980 Total cost of Job P951 (a) $ 8,980 Number of units (b) 25 Unit product cost (a) ÷ (b) $359.20

Kostelnik Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $285,600, variable manufacturing overhead of $2.70 per machine-hour, and 42,000 machine-hours. The company has provided the following data concerning Job A496 which was recently completed: Number of units in the job 10 Total machine-hours 80 Direct materials $ 880 Direct labor cost $ 1,760 The unit product cost for Job A496 is closest to: (Round your intermediate calculations to 2 decimal places.)

Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base) = $285,600 + ($2.70 per machine-hour × 42,000 machine-hours) = $285,600 + $113,400 = $399,000 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $399,000 ÷ 42,000 machine-hours = $9.50 per machine-hour Overhead applied to a particular job = Predetermined overhead rate x Amount of the allocation base incurred by the job = $9.50 per machine-hour × 80 machine-hours = $760 Direct materials $ 880 Direct labor 1,760 Manufacturing overhead applied 760 Total cost of Job A496 $ 3,400 Total cost of Job A496 (a) $ 3,400 Number of units (b) 10 Unit product cost (a) ÷ (b) $340.00

Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 31,000 Total fixed manufacturing overhead cost $ 310,000 Variable manufacturing overhead per machine-hour $ 4.00 Recently, Job T687 was completed with the following characteristics: Number of units in the job 10 Total machine-hours 30 Direct materials $ 730 Direct labor cost $ 1,460 The unit product cost for Job T687 is closest to:

Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base) = $310,000 + ($4.00 per machine-hour × 31,000 machine-hours) = $310,000 + $124,000 = $434,000 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $434,000 ÷ 31,000 machine-hours = $14 per machine-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $14 per machine-hour × 30 machine-hours = $420 Direct materials $ 730 Direct labor 1,460 Manufacturing overhead applied 420 Total cost of Job T687 $ 2,610 Total cost of Job T687 (a) $ 2,610 Number of units (b) 10 Unit product cost (a) ÷ (b) $261.00

The following partially completed T-accounts summarize transactions for Faaberg Corporation during the year: Raw Materials Beg Bal 4,750 8,500 4,950 Work in Process Beg Bal 3,850 21,950 5,950 8,250 8,050 Finished Goods Beg Bal 1,950 20,150 21,950 Manufacturing Overhead 2,550 8,050 3,250 2,950 Wages & Salaries Payable 20,150 Beg Bal 2,250 11,500 Cost of Goods Sold Beg Bal 20,150 The Cost of Goods Manufactured was:

Explanation Work In Process Beg Bal 3,850 COGM 21,950 Direct materials 5,950 Direct labor 8,250 Manufacturing overhead applied 8,050 Finished Goods Beg Bal 1,950 20,150 COGM 21,950 $21,950

During March, Zea Inc. transferred $61,000 from Work in Process to Finished Goods and recorded a Cost of Goods Sold of $67,000. The journal entries to record these transactions would include a:

Finished Goods 61,000 Work in Process 61,000 Cost of Goods Sold 67,000 Finished Goods 67,000 credit to Work in Process of $61,000.

Schonhardt Corporation's relevant range of activity is 2,300 units to 6,500 units. When it produces and sells 4,400 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.10 Direct labor $ 3.20 Variable manufacturing overhead $ 1.15 Fixed manufacturing overhead $ 3.00 Fixed selling expense $ 0.75 Fixed administrative expense $ 0.45 Sales commissions $ 0.55 Variable administrative expense $ 0.45 If 5,500 units are produced, the total amount of fixed manufacturing cost incurred is closest to:

Fixed manufacturing overhead per unit $ 3.00 Number of units produced* 4,400 Total fixed manufacturing overhead cost $13,200 *The average fixed manufacturing overhead cost per unit was determined by dividing the total fixed manufacturing overhead cost by 4,400 units.

Bulla Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Machining Customizing Machine-hours 13,000 11,000 Direct labor-hours 4,000 1,000 Total fixed manufacturing overhead cost $ 54,600 $ 46,200 Variable manufacturing overhead per machine-hour $ 2.50 Variable manufacturing overhead per direct labor-hour $ 5.00 During the current month the company started and finished Job K369. The following data were recorded for this job: Job K369: Machining Customizing Machine-hours 90 10 Direct labor-hours 20 80 Required: Calculate the total amount of overhead applied to Job K369 in both departments. (Do not round intermediate calculations.)

Machining Department: Machining Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department) = $54,600 + ($2.50 per machine-hour × 13,000 machine-hours) = $54,600 + $32,500 = $87,100 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the = $87,100 ÷ 13,000 machine-hours = $6.70 per machine-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $6.70 per machine-hour × 90 machine-hours = $603 Customizing Department: Customizing Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per direct labor-hour × Total direct labor-hours in the department) = $46,200 + ($5.00 per direct labor-hour × 1,000 direct labor-hours) = $46,200 + $5,000.00 = $51,200 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the = $51,200 ÷ 1,000 direct labor-hours = $51.20 per direct labor-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $51.20 per direct labor-hour × 80 direct labor-hours = $4,096 Overhead applied to Job K369

Sagon Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of September. Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was $85,000 and the total of the credits to the account was $61,000. Which of the following statements is true? Multiple Choice Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $85,000. Actual manufacturing overhead incurred during the month was $61,000. Manufacturing overhead applied to Work in Process for the month was $85,000. Manufacturing overhead for the month was underapplied by $24,000.

Manufacturing Overhead 85,000 61,000 24,000 A debit balance in Manufacturing Overhead means that manufacturing overhead was underapplied. Manufacturing overhead for the month was underapplied by $24,000.

Abburi Company's manufacturing overhead is 40% of its total conversion costs. If direct labor is $105,000 and if direct materials are $21,000, the manufacturing overhead is:

Manufacturing overhead = 0.40 × Conversion cost Direct labor = $105,000 Conversion cost = Direct labor + Manufacturing overhead Conversion cost = $105,000 + Manufacturing overhead Conversion cost = $105,000 + (0.40 × Conversion cost) 0.60 × Conversion cost = $105,000 Conversion cost = $105,000 ÷ 0.60 = $175,000 Manufacturing overhead = 0.40 × Conversion cost Manufacturing overhead = 0.40 × $175,000 = $70,000

Sargent Corporation applies overhead cost to jobs on the basis of 90% of direct labor cost. If Job 210 shows $18,810 of manufacturing overhead cost applied, how much was the direct labor cost on the job?

Manufacturing overhead applied = Predetermined overhead rate × Amount of the allocation base incurred $18,810 = 0.90 × Direct labor cost Direct labor cost = $18,810 ÷ 0.90 = $20,900

Luebke Inc. has provided the following data for the month of November. The balance in the Finished Goods inventory account at the beginning of the month was $64,000 and at the end of the month was $31,200. The cost of goods manufactured for the month was $218,000. The actual manufacturing overhead cost incurred was $58,600 and the manufacturing overhead cost applied to Work in Process was $62,800. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. The adjusted cost of goods sold that would appear on the income statement for November is:

Manufacturing overhead underapplied (overapplied) = Actual manufacturing overhead incurred - Manufacturing overhead applied = $58,600 - $62,800 = $4,200 overapplied Adjusted cost of goods sold = Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory - Manufacturing overhead overapplied = $64,000 + $218,000 - $31,200 - $4,200 = $246,600

Mcmurtry Corporation sells a product for $250 per unit. The product's current sales are 13,600 units and its break-even sales are 10,608 units. The margin of safety as a percentage of sales is closest to:

Margin of safety in dollars = Total sales - Break-even sales = ($250 per unit × 13,600 units) - ($250 per unit × 10,608 units) = $3,400,000 - $2,652,000 = $748,000 Margin of safety percentage = Margin of safety in dollars ÷ Total sales = $748,000 ÷ $3,400,000 = 0.22 22%

Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Milling Customizing Machine-hours 20,000 24,000 Direct labor-hours 18,000 8,000 Total fixed manufacturing overhead cost $ 68,000 $ 36,000 Variable manufacturing overhead per machine-hour $ 1.90 Variable manufacturing overhead per direct labor-hour $ 3.80 During the current month the company started and finished Job A319. The following data were recorded for this job: Job A319: Milling Customizing Machine-hours 70 20 Direct labor-hours 20 60 Direct materials $ 750 $ 250 Direct labor cost $ 450 $ 750 If the company marks up its manufacturing costs by 20% then the selling price for Job A319 would be closest to: (Round your intermediate calculations to 2 decimal places.)

Milling Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department) = $68,000 + ($1.90 per machine-hour × 20,000 machine-hours) = $68,000 + $38,000 = $106,000 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $106,000 ÷ 20,000 machine-hours = $5.30 per machine-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $5.30 per machine-hour × 70 machine-hours = $371 Customizing Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per direct labor-hour × Total direct labor-hours in the department) = $36,000 + ($3.80 per direct labor-hour × 8,000 direct labor-hours) = $36,000 + $30,400 = $66,400 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $66,400 ÷ 8,000 direct labor-hours = $8.30 per direct labor-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $8.30 per direct labor-hour × 60 direct labor-hours = $498 Milling Customizing Total Direct materials $ 750 $ 250 $ 1,000 Direct labor $ 450 $ 750 1,200 Manufacturing overhead applied $ 371 $ 498 869 Total cost of Job A319 $ 3,069 Total cost of Job A319 $ 3,069 Markup ($3,069 × 20%) 614 Selling price $3,683

Tyare Corporation had the following inventory balances at the beginning and end of May: May 1 May 30 Raw materials $ 35,000 $ 49,000 Finished Goods $ 84,500 $ 85,000 Work in Process $ 23,000 $ 17,963 During May, $68,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 490 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $8,000 of direct materials cost. The Corporation incurred $44,850 of actual manufacturing overhead cost during the month and applied $45,300 in manufacturing overhead cost. The actual direct labor-hours worked during May totaled:

Overhead applied = Predetermined overhead rate × Amount of the allocation base incurred Amount of the allocation base incurred = Overhead applied ÷ Predetermined overhead rate Amount of the allocation base incurred = $45,300 ÷ $12 per direct labor-hour = 3,775 direct labor-hours 3,775 hours

Rieb Inc. has provided the following data for the month of September. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Work In Process Finished Goods Cost of Goods Sold Total Direct materials $ 3,880 $ 8,960 $ 47,480 $ 60,320 Direct labor 10,040 24,290 130,220 164,550 Manufacturing overhead applied 6,960 12,180 67,860 87,000 Total $ 20,880 $ 45,430 $ 245,560 $ 311,870 Manufacturing overhead for the month was overapplied by $8,000. The company allocates any underapplied or overapplied overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts. Required: Provide the journal entry that would record the allocation of underapplied or overapplied among work in process, finished goods, and cost of goods sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Overhead applied in work in process $ 6,960 8 % Overhead applied in finished goods $ 12,180 14 % Overhead applied in cost of goods sold $ 67,860 78 % Total overhead applied $ 87,000 100 % Manufacturing Overhead (debit) 8,000 Work in Process (8% × $8,000) (credit)640 Finished Goods (14% × $8,000) (credit)1,120 Cost of Goods Sold (78% × $8,000) (credit)6,240

Merone Company allocates materials handling cost to the company's two products using the below data: Modular Homes Prefab Barns Total expected units produced 6,400 9,400 Total expected material moves 640 240 Expected direct labor-hours per unit 840 340 The total materials handling cost for the year is expected to be $300,020. If the materials handling cost is allocated on the basis of direct labor-hours, the total materials handling cost allocated to the prefab barns is closest to: (Round your intermediate calculations to 2 decimal places.)

Predetermined overhead rate = $300,020 ÷ [(840 DLHs per unit × 6,400 units) + (340 DLHs per unit × 9,400 units)] = $300,020 ÷ 8,572,000 DLHs $35 per 1,000 DLHs Materials handling cost allocated to Prefab Barns = $35 per 1,000 DLHs × 340 DLHs per unit × 9,400 units = $111,860.00

Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead $ 157,150 Estimated machine-hours 4,520 Actual manufacturing overhead $ 156,200 Actual machine-hours 4,620 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The applied manufacturing overhead for the year is closest to: (Round your intermediate calculations to 2 decimal places.)

Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated total amount of the allocation base = $157,150 ÷ 4,520 machine-hours = $34.77 per machine-hour Manufacturing overhead applied = Predetermined overhead rate × Actual amount of the allocation base = $34.77 per machine-hour × 4,620 machine-hours = $160,637

Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 22,120 hours and the total estimated manufacturing overhead was $575,120. At the end of the year, actual direct labor-hours for the year were 22,100 hours and the actual manufacturing overhead for the year was $575,120. Overhead at the end of the year was: (Round your intermediate calculations to 2 decimal places.)

Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated total amount of the allocation base = $575,120 ÷ 22,120 direct labor-hours = $26.00 per direct labor-hour Overhead applied = Predetermined overhead rate × Amount of the allocation base incurred = $26.00 per direct labor-hour × 22,100 direct labor-hours = $574,600 Overhead over or underapplied Actual manufacturing overhead incurred $ 575,120 Manufacturing overhead applied to Work in Process 574,600 Underapplied (overapplied) manufacturing overhead $520 $520 underapplied

Adelberg Company has two products: A and B. The annual production and sales of Product A is 2,100 units and of Product B is 1,500 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.5 direct labor-hours per unit and Product B requires 0.8 direct labor-hours per unit. The total estimated overhead for next period is $103,275. The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools--Activity 1, Activity 2, and Order Size--with estimated overhead costs and expected activity as follows: Estimated Expected Activity Activity Cost Pools Overhead Costs Product A Product B Total Activity 1 $ 31,912 1,400 1,000 2,400 Activity 2 18,176 2,100 600 2,700 Order Size 53,187 1,050 1,200 2,250 Total $ 103,275 (Note: The Order Size activity cost pool's costs are allocated on the basis of direct labor-hours.) The overhead cost per unit of Product B under the traditional costing system is closest to: (Round your intermediate calculations to 2 decimal places.)

Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated total amount of the allocation base = $103,275 ÷ 2,250 DLHs = $45.90 per DLH Overhead cost per unit of Product B = ($45.90 per DLH × 1,200 DLHs) ÷ 1,500 units = $36.72 per unit

Adelberg Company has two products: A and B. The annual production and sales of Product A is 2,550 units and of Product B is 1,950 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.5 direct labor-hours per unit and Product B requires 0.8 direct labor-hours per unit. The total estimated overhead for next period is $108,200. The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools--Activity 1, Activity 2, and Order Size--with estimated overhead costs and expected activity as follows: Estimated Expected Activity Activity Cost Pools Overhead Costs Product A Product B Total Activity 1 $ 33,434 1,850 1,450 3,300 Activity 2 19,043 2,550 1,050 3,600 Order Size 55,723 1,275 1,560 2,835 Total $ 108,200 (Note: The Order Size activity cost pool's costs are allocated on the basis of direct labor-hours.) The predetermined overhead rate under the traditional costing system is closest to:

Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated total amount of the allocation base = $108,200 ÷ 2,835 DLHs = $38.17 per DLH

Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $245,400 and 10,400 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $245,800 and actual direct labor-hours were 6,500. The applied manufacturing overhead for the year was closest to: (Round your intermediate calculations to 2 decimal places.)

Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated total direct labor-hours = $245,400 ÷ 10,400 direct labor-hours = $23.60 per direct labor-hour Manufacturing overhead applied = Predetermined overhead rate × Actual direct labor-hours = $23.60 per direct labor-hour × 6,500 direct labor-hours = $153,400

Faz, Inc., manufactures and sells two products: Product X0 and Product W7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product X0 1,500 5 7,500 Product W7 560 2 1,120 Total direct labor-hours 8,620 The direct labor rate is $35.60 per DLH. The direct materials cost per unit is $160.50 for Product X0 and $142 for Product W7. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product X0 Product W7 Total Labor-related DLHs $ 288,078 7,500 1,120 8,620 Production orders orders 20,548 660 860 1,520 Order size MHs 251,894 4,160 4,260 8,420 $560,520 If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product X0 would be closest to: (Round your intermediate calculation to 2 decimal places.)

Predetermined overhead rate = Estimated total overhead ÷ Total direct labor-hours = $560,520 ÷ 8,620 DLHs = $65.03 per DLH (rounded) Product X0: 5 DLHs × $65.03 per DLH = $325.15 per unit

Spates, Inc., manufactures and sells two products: Product H2 and Product E0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product H2 180 6.8 1,224 Product E0 180 5.8 1,044 Total direct labor-hours 2,268 The company's expected total manufacturing overhead is $270,468. If the company allocates all of its overhead based on direct labor-hours, the overhead assigned to each unit of Product H2 would be closest to: (Round your intermediate calculations to 2 decimal places.)

Predetermined overhead rate = Estimated total overhead ÷ Total direct labor-hours = $270,468 ÷ 2,268 DLHs = $119.25 per DLH (rounded) Product H2: 6.8 DLHs × $119.25 per DLH = $810.90

Mcdale Inc. produces and sells two products. Data concerning those products for the most recent month appear below: Product I49V Product Z50U Sales $ 36,000 $ 41,000 Variable expenses $ 12,400 $ 28,410 The fixed expenses of the entire company were $39,100. The break-even point for the entire company is closest to:

Product I49V Product Z50U Total Sales $ 36,000 $ 41,000 $ 77,000 Variable expenses 12,400 28,410 40,810 Contribution margin $ 23,600 $ 12,590 $ 36,190 CM ratio = Contribution margin ÷ Sales = $36,190 ÷ $77,000 = 0.47 Dollar sales to break even = Fixed expenses ÷ CM ratio = $39,100 ÷ 0.47 = $83,191

Ingrum Corporation produces and sells two products. In the most recent month, Product R38T had sales of $30,500 and variable expenses of $8,340. Product X08S had sales of $51,500 and variable expenses of $23,640. The fixed expenses of the entire company were $35,380. The break-even point for the entire company is closest to:

Product R38T Product X08S Total Sales $ 30,500 $ 51,500 $ 82,000 Variable expenses 8,340 23,640 31,980 Contribution margin $ 22,160 $ 27,860 $ 50,020 CM ratio = Contribution margin ÷ Sales revenue = $50,020 ÷ $82,000 = 0.61 Dollar sales to break even = Fixed expenses ÷ CM ratio = $35,380 ÷ 0.61 = $58,000

Last year Easton Corporation reported sales of $920,000, a contribution margin ratio of 40% and a net loss of $44,000. Based on this information, the break-even point was:

Profit = (CM ratio × Sales) - Fixed expenses -$44,000 = (0.40 × $920,000) - Fixed expenses Fixed expenses = (0.40 × $920,000) + $44,000 = $412,000 Dollar sales to break even = Fixed expenses ÷ CM ratio = $412,000 ÷ 0.40 = $1,030,000

Jilk Inc.'s contribution margin ratio is 61% and its fixed monthly expenses are $51,500. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $145,000?

Profit = (CM ratio × Sales) - Fixed expenses = (0.61 × $145,000) - $51,500 = $88,450 - $51,500 = $36,950

Creswell Corporation's fixed monthly expenses are $25,500 and its contribution margin ratio is 68%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $83,000?

Profit = (CM ratio × Sales) - Fixed expenses = (0.68 × $83,000) - $25,500 = $56,440 - $25,500 = $30,940

Moyas Corporation sells a single product for $10 per unit. Last year, the company's sales revenue was $240,000 and its net operating income was $16,000. If fixed expenses totaled $80,000 for the year, the break-even point in unit sales was:

Profit = (Sales - Variable expenses) - Fixed expenses $16,000 = ($240,000 - Variable expenses) - $80,000 Variable expenses = $240,000 - $80,000 - $16,000 = $144,000 CM ratio = Contribution margin ÷ Sales = ($240,000 - $144,000) ÷ $240,000 = 0.40 Dollar sales to break even = Fixed expenses ÷ CM ratio = $80,000 ÷ 0.40 = $200,000 Unit sales to break even = $200,000 ÷ $10 per unit = 20,000 units

Gullett Corporation had $36,000 of raw materials on hand on November 1. During the month, the Corporation purchased an additional $85,000 of raw materials. The journal entry to record the purchase of raw materials would include a:

Raw Materials 85,000 Accounts Payable 85,000 debit to Raw Materials of $85,000

Compute the amount of raw materials used during November if $38,500 of raw materials were purchased during the month and if the inventories were as follows: Inventories Balance November 1 Balance November 30 Raw materials $ 10,400 $ 5,700 Work in process $ 7,700 $ 9,200 Finished goods $ 11,700 $ 13,700

Raw materials used in production = Beginning raw materials inventory + Purchases of raw materials - Ending raw materials inventory Raw materials used in production = $10,400 + $38,500 - $5,700 = $43,200

Dacosta Corporation had only one job in process on May 1. The job had been charged with $2,050 of direct materials, $6,990 of direct labor, and $10,006 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $18.90 per direct labor-hour. During May, the following activity was recorded: Raw materials (all direct materials): Beginning balance $ 8,750 Purchased during the month $ 38,250 Used in production $ 39,550 Labor: Direct labor-hours worked during the month 2,150 Direct labor cost incurred $ 24,760 Actual manufacturing overhead costs incurred $ 33,550 Inventories: Raw materials, May 30 ? Work in process, May 30 $ 17,002 Work in process inventory on May 30 contains $3,786 of direct labor cost. Raw materials consist solely of items that are classified as direct materials. The balance in the raw materials inventory account on May 30 was:

Raw materials used in production = Beginning raw materials inventory + Purchases of raw materials − Ending raw materials inventory Ending raw materials inventory = Beginning raw materials inventory + Purchases of raw materials − Raw materials used in production Ending raw materials inventory = $8,750 + $38,250 − $39,550 = $7,450

Bolka Corporation, a merchandising company, reported the following results for October: Sales $ 434,000 Cost of goods sold (all variable) $ 175,200 Total variable selling expense $ 23,700 Total fixed selling expense $ 15,500 Total variable administrative expense $ 16,000 Total fixed administrative expense $ 32,400 The contribution margin for October is:

Sales $ 434,000 Variable expenses: Cost of goods sold $ 175,200 Variable selling expense 23,700 Variable administrative expense 16,000 214,900 Contribution margin $219,100

At a sales volume of 37,000 units, Choice Corporation's sales commissions (a cost that is variable with respect to sales volume) total $754,800. To the nearest whole cent, what should be the average sales commission per unit at a sales volume of 44,600 units? (Assume that this sales volume is within the relevant range.)

Sales commission per unit = Total sales commissions ÷ Unit sales = $754,800 ÷ 37,000 = $20.40 The average sales commission per unit is constant within the relevant range.

Macy Corporation's relevant range of activity is 5,700 units to 12,500 units. When it produces and sells 9,100 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.10 Direct labor $ 3.55 Variable manufacturing overhead $ 1.55 Fixed manufacturing overhead $ 2.50 Fixed selling expense $ 1.50 Fixed administrative expense $ 0.55 Sales commissions $ 1.45 Variable administrative expense $ 0.45 If the selling price is $28.00 per unit, the contribution margin per unit sold is closest to:

Selling price per unit $ 28.00 Direct materials $ 5.10 Direct labor 3.55 Variable manufacturing overhead 1.55 Sales commissions 1.45 Variable administrative expense 0.45 Variable cost per unit sold 12.10 Contribution margin per unit $15.90

Tirri Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 7.45 Direct labor $ 3.75 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 24,300 Sales commissions $ 1.00 Variable administrative expense $ 0.80 Fixed selling and administrative expense $ 8,700 If the selling price is $28.00 per unit, the contribution margin per unit sold is closest to:

Selling price per unit $ 28.00 Direct materials $ 7.45 Direct labor 3.75 Variable manufacturing overhead 1.50 Sales commissions 1.00 Variable administrative expense 0.80 Variable cost per unit sold 14.50 Contribution margin per unit $13.50

Decaprio Inc. produces and sells a single product. The company has provided its contribution format income statement for June. Sales (5,800 units) $ 232,000 Variable expenses 127,600 Contribution margin 104,400 Fixed expenses 87,100 Net operating income $ 17,300 If the company sells 6,000 units, its net operating income should be closest to: (Do not round intermediate calculations.)

Selling price per unit = Sales ÷ Quantity sold = $232,000 ÷ 5,800 units = $40 per unit Variable expenses per unit = Variable expenses ÷ Quantity sold = $127,600 ÷ 5,800 units = $22 per unit Unit CM = Selling price per unit - Variable expenses per unit = $40 per unit - $22 per unit = $18 per unit Profit = (Unit CM × Q) - Fixed expenses = ($18 per unit × 6,000 units) - $87,100 = $108,000 - $87,100 = $20,900

Rovinsky Corporation, a company that produces and sells a single product, has provided its contribution format income statement for November. Sales (7,100 units) $ 326,600 Variable expenses 184,600 Contribution margin 142,000 Fixed expenses 103,500 Net operating income $ 38,500 If the company sells 7,000 units, its net operating income should be closest to: (Do not round intermediate calculations.)

Selling price per unit = Sales ÷ Quantity sold = $326,600 ÷ 7,100 units = $46 per unit Variable expenses per unit = Variable expenses ÷ Quantity sold = $184,600 ÷ 7,100 units = $26 per unit Unit CM = Selling price per unit - Variable expenses per unit = $46 per unit - $26 per unit = $20 per unit Profit = (Unit CM × Q) - Fixed expenses = ($20 per unit × 7,000 units) - $103,500 = $140,000 - $103,500 = $36,500

Ravelo Corporation has provided the following data from its activity-based costing system: Activity Cost Pools Estimated Overhead Cost Expected Activity Assembly $ 512,520 51,000 machine-hours Processing orders $ 61,263 1,800 orders Inspection $ 84,589 1,810 inspection-hours Data concerning the company's product L19B appear below: Annual unit production and sales 570 Annual machine-hours 1,130 Annual number of orders 210 Annual inspection hours 160 Direct materials cost $ 51.74 per unit Direct labor cost $ 24.45 per unit According to the activity-based costing system, the unit product cost of product L19B is closest to: (Round your intermediate calculations to 2 decimal places.)

The activity rates for each activity cost pool are computed as follows: Activity Cost Pools (a) Estimated Overhead Cost (b) Total Expected Activity (a) ÷ (b) Activity Rate Assembly $ 512,520 51,000 machine-hours $ 10.05 per machine-hour Processing orders $ 61,263 1,800 orders $ 34.04 per order Inspection $ 84,589 1,810 inspection-hours $ 46.73 per inspection-hour The overhead cost charged to Product L19B is: Activity Cost Pools Activity Rates Expected Activity Amount Assembly $ 10.05 per machine-hour 1,130 machine-hours $ 11,356.50 Processing orders $ 34.04 per order 210 orders 7,148.40 Inspection $ 46.73 per inspection-hour 160 inspection-hours 7,476.80 Total overhead cost $ 25,981.70 Direct materials (570 units × $51.74 per unit) $ 29,491.80 Direct labor (570 units × $24.45 per unit) 13,936.50 Overhead 25,981.70 Total cost $ 69,410.00 Unit product cost = $69,410.00 ÷ 570 units = $121.77 per unit

Belsky Corporation has provided the following data from its activity-based costing system: Activity Cost Pools Estimated Overhead Cost Expected Activity Assembly $ 978,200 67,000 machine-hours Processing orders $ 94,905 1,900 orders Inspection $ 134,292 1,860 inspection-hours The company makes 440 units of product Q19S a year, requiring a total of 700 machine-hours, 41 orders, and 11 inspection-hours per year. The product's direct materials cost is $36.17 per unit and its direct labor cost is $29.91 per unit. According to the activity-based costing system, the unit product cost of product Q19S is closest to: (Round your intermediate calculations to 2 decimal places.)

The activity rates for each activity cost pool are computed as follows: Activity Cost Pools (a) Estimated Overhead Cost (b) Total Expected Activity (a) ÷ (b) Activity Rate Assembly $ 978,200 67,000 machine-hours $ 14.60 per machine-hour Processing orders $ 94,905 1,900 orders $ 49.95 per order Inspection $ 134,292 1,860 inspection-hours $ 72.20 per inspection-hour The overhead cost charged to Product Q19S is: Activity Cost Pools and Activity Rates Expected Activity Amount Assembly ($14.60 per machine-hour) 700 $ 10,220.00 Processing orders ($49.95 per order) 41 2,047.95 Inspection ($72.20 per inspection-hour) 11 794.20 Total overhead costs assigned (a) $ 13,062.15 Number of units produced (b) 440 Overhead cost per unit (a) ÷ (b) $ 29.69 Direct materials $ 36.17 Direct labor 29.91 Manufacturing overhead (see above) 29.69 Unit product cost $95.77

Opunui Corporation has two manufacturing departments--Molding and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Molding Finishing Total Estimated total machine-hours (MHs) 3,250 1,750 5,000 Estimated total fixed manufacturing overhead cost $ 22,000 $ 2,700 $ 24,700 Estimated variable manufacturing overhead cost per MH $ 1.50 $ 3.00 During the most recent month, the company started and completed two jobs--Job A and Job M. There were no beginning inventories. Data concerning those two jobs follow: Job A Job M Direct materials $ 13,900 $ 7,800 Direct labor cost $ 21,000 $ 7,800 Molding machine-hours 1,250 2,000 Finishing machine-hours 1,250 500 Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. The total manufacturing cost assigned to Job M is closest to: (Round "Predetermined overhead rate" to 2 decimal places.)

The first step is to calculate the estimated total overhead costs in the two departments. Molding Estimated fixed manufacturing overhead $ 22,000 Estimated variable manufacturing overhead ($1.50 per MH × 3,250 MHs) 4,875 Estimated total manufacturing overhead cost $ 26,875 Finishing Estimated fixed manufacturing overhead $ 2,700 Estimated variable manufacturing overhead ($3.00 per MH × 1,750 MHs) 5,250 Estimated total manufacturing overhead cost $ 7,950 The second step is to combine the estimated manufacturing overhead costs in the two departments ($26,875 + $7,950 = $34,825) to calculate the plantwide predetermined overhead rate as follow: Estimated total manufacturing overhead cost $ 34,825 Estimated total machine hours 5,000 MHs Predetermined overhead rate $ 6.97 per MH The overhead applied to Job M is calculated as follows: Overhead applied to a particular job = Predetermined overhead rate × Machine-hours incurred by the job = $6.97 per MH × (2,000 MHs + 500 MHs) = $6.97 per MH × (2,500 MHs) = $17,425 Job M's manufacturing cost: Direct materials $ 7,800 Direct labor cost 7,800 Manufacturing overhead applied 17,425 Total manufacturing cost $33,025

The following accounts are from last year's books of Sharp Manufacturing: Raw Materials Bal 0 (b) 155,600 (a) 168,000 12,400 Work In Process Bal 0 (f) 516,400 (b) 132,800 (c) 169,600 (e) 214,000 0 Finished Goods Bal 0 (g) 468,000 (f) 516,400 48,400 Manufacturing Overhead (b) 22,800 (e) 214,000 (c) 26,800 (d) 157,600 6,800 Cost of Goods Sold (g) 468,000 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of direct materials used for the year?

The journal entry to record Issue of direct and indirect materials was entry (b) above: Work in Process 132,800 Manufacturing Overhead 22,800 Raw Materials 155,600 Direct materials are debited to Work in Process; indirect materials are debited to Manufacturing Overhead. $132,800

The following accounts are from last year's books at Sharp Manufacturing: Raw Materials Bal 0 (b) 155,200 (a) 167,000 11,800 Work In Process Bal 0 (f) 514,800 (b) 132,600 (c) 169,200 (e) 213,000 0 Finished Goods Bal 0 (g) 466,000 (f) 514,800 48,800 Manufacturing Overhead (b) 22,600 (e) 213,000 (c) 26,600 (d) 157,200 6,600 Cost of Goods Sold (g) 466,000 Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the manufacturing overapplied or underapplied for the year?

The manufacturing overhead is overapplied by $6,600 because the manufacturing overhead applied of $213,000 exceeds the manufacturing overhead incurred by $6,600. $6,600 overapplied

Bera Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activity Cost Pools Activity Rate Assembling products $ 3.56 per assembly hour Processing customer orders $ 48.93 per customer order Setting up batches $ 76.93 per batch Data for one of the company's products follow: Product Q79P Number of assembly hours' 259 Number of customer orders 49 Number of batches 75 How much overhead cost would be assigned to Product Q79P using the activity-based costing system? (Round your intermediate calculations to 2 decimal places.)

The overhead cost charged to Product Q79P is: Activity Rate Expected Activity Amount Assembling products $ 3.56 per assembly hour 259 hours $ 922.04 Processing customer orders $ 48.93 per customer order 49 orders 2,397.57 Setting up batches $ 76.93 per batch 75 batches 5,769.75 Total overhead cost $9,089.36

Dake Corporation's relevant range of activity is 3,200 units to 8,000 units. When it produces and sells 5,600 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.55 Direct labor $ 3.50 Variable manufacturing overhead $ 1.30 Fixed manufacturing overhead $ 3.00 Fixed selling expense $ 0.90 Fixed administrative expense $ 0.60 Sales commissions $ 0.70 Variable administrative expense $ 0.60 If 4,600 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

Total variable manufacturing overhead cost ($1.30 per unit x 4,600 units) $ 5,980 Total fixed manufacturing overhead cost ($3.00 per unit x 5,600 units*) 16,800 Total indirect manufacturing cost $22,780 *The average fixed manufacturing overhead cost per unit was determined by dividing the total fixed manufacturing overhead cost by 5,600 units.

Data concerning Bedwell Enterprises Corporation's single product appear below: Selling price per unit $ 165.00 Variable expense per unit $ 92.00 Fixed expense per month $ 431,040 The unit sales to attain the company's monthly target profit of $20,000 is closest to: (Do not round intermediate calculations.)

Unit CM = Selling price per unit - Variable expense per unit = $165.00 per unit - $92.00 per unit = $73.00 per unit Unit sales to attain a target profit = (Target profit + Fixed expenses) ÷ Unit CM = ($20,000 + $431,040) ÷ $73.00 per unit = $451,040 ÷ $73.00 per unit = 6,179 units

A cement manufacturer has supplied the following data: Tons of cement produced and sold 263,000 Sales revenue $ 1,104,600 Variable manufacturing expense $ 432,000 Fixed manufacturing expense $ 229,000 Variable selling and administrative expense $ 94,000 Fixed selling and administrative expense $ 219,000 Net operating income $ 130,600 What is the company's unit contribution margin? (Round your intermediate calculations to 2 decimal places.)

Unit contribution margin = Selling price per unit - Variable expenses per unit = ($1,104,600 ÷ 263,000 units) - (($432,000 + $94,000) ÷ 263,000 units) = ($1,104,600 ÷ 263,000 units) - ($526,000 ÷ 263,000 units) = $4.20 per unit - $2.00 per unit = $2.20 per unit

Sufra Corporation is planning to sell 100,000 units for $2.25 per unit and will break even at this level of sales. Fixed expenses will be $90,000. What are the company's variable expenses per unit?

Unit sales to break even = Fixed expenses ÷ Unit CM 100,000 units = $90,000 ÷ Unit CM Unit CM = $90,000 ÷ 100,000 units = $0.90 per unit Unit CM = Selling price per unit - Variable expenses per unit $0.90per unit = $2.25 per unit - Variable expenses per unit Variable expenses per unit = $2.25 per unit - $0.90 per unit = $1.35 per unit

Carpenter Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 1,900 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $ 6,500 60% Conversion costs $ 9,800 55% A total of 9,750 units were started and 8,400 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs $ 96,300 Conversion costs $ 170,500 The ending inventory was 85% complete with respect to materials and 70% complete with respect to conversion costs. How many units are in ending work in process inventory in the first processing department at the end of the month?

Units in ending work in process = Units in beginning work in process + Units started into production − Units transferred to the next department = 1,900 + 9,750 − 8,400 = 3,250

At an activity level of 9,700 machine-hours in a month, Falks Corporation's total variable production engineering cost is $810,435 and its total fixed production engineering cost is $193,050. What would be the total production engineering cost per machine-hour, both fixed and variable, at an activity level of 9,900 machine-hours in a month? Assume that this level of activity is within the relevant range. (Round intermediate calculations to 2 decimal places.)

Variable cost per machine-hour = $810,435 ÷ 9,700 machine-hours = $83.55 per machine-hour Fixed cost per machine-hour at 9,900 machine-hours = $193,050 ÷ 9,900 machine-hours = $19.50 per machine-hour Total cost = Variable cost + Fixed cost = $83.55 per machine-hour + $19.50 per machine-hour = $103.05 per machine-hour

Arona Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the Fabrication Department, fiberglass panels are attached to a canoe- shaped aluminum frame. The canoes are then transferred to the Waterproofing department to be coated with sealant. Arona uses a weighted-average process cost system to collect costs in both departments. All materials in the Fabrication Department are added at the beginning of the production process. On July 1, the Fabrication Department had 30 canoes in process that were 20% complete with respect to conversion cost. On July 31, Fabrication had 20 canoes in process that were 40% complete with respect to conversion cost. During July, the Fabrication Department completed 73 canoes and transferred them to the Waterproofing Department. What are the Fabrication Department's equivalent units of production related to conversion costs for July?

Weighted-average method Equivalent units of production = Units transferred to the next department or to finished goods + Equivalent units in ending work in process inventory = 73 + 0.40 × 20 = 81

Arona Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the Fabrication Department, fiberglass panels are attached to a canoe- shaped aluminum frame. The canoes are then transferred to the Waterproofing department to be coated with sealant. Arona uses a weighted-average process cost system to collect costs in both departments. All materials in the Fabrication Department are added at the beginning of the production process. On July 1, the Fabrication Department had 30 canoes in process that were 20% complete with respect to conversion cost. On July 31, Fabrication had 20 canoes in process that were 40% complete with respect to conversion cost. During July, the Fabrication Department completed 86 canoes and transferred them to the Waterproofing Department. What are the Fabrication Department's equivalent units of production related to materials for July?

Weighted-average method Equivalent units of production = Units transferred to the next department or to finished goods + Equivalent units in ending work in process inventory = 86 + 1.00 × 20 = 106

Bims Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 4,800 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 68,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 32,000 units in the ending work in process inventory of the Assembly Department that were 60% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month?

Weighted-average method Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 4,800 + 68,000 - 32,000 = 40,800 Conversion Units transferred to the next department 40,800 Ending work in process: Conversion: 32,000 units × 60% 19,200 Equivalent units of production 60,000 60,000

Darden Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 21,200 units in its beginning work in process inventory that were 10% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $24,200. An additional 100,000 units were started into production during the month. There were 33,000 units in the ending work in process inventory of the Welding Department that were 70% complete with respect to conversion costs. A total of $852,880 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs for the month is closest to:

Weighted-average method Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process Units transferred to the next department = 21,200 + 100,000 - 33,000 = 88,200 Conversion Units transferred to the next department 88,200 Ending work in process: Conversion: 33,000 units × 70% 23,100 Equivalent units of production 111,300 Conversion Cost of beginning work in process inventory $ 24,200 Costs added during the period 852,880 Total cost (a) $ 877,080 Equivalent units of production (b) 111,300 Cost per equivalent unit (a) ÷ (b) $7.880

Domingo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 1,600 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $ 6,700 50% Conversion costs $ 2,900 20% A total of 8,000 units were started and 7,300 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Cost Materials costs $ 159,900 Conversion costs $ 121,600 The ending inventory was 85% complete with respect to materials and 75% complete with respect to conversion costs. What are the equivalent units for conversion costs for the month in the first processing department?

Weighted-average method: Conversion Units transferred to the next department 7,300 Ending work in process: Conversion: 2,300 units × 75% 1,725 Equivalent units of production 9,025

Hache Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 17,650 units in its beginning work in process inventory that were 20% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $8,000. An additional 90,300 units were started into production during the month and 93,300 units were completed in the Welding Department and transferred to the next processing department. There were 14,650 units in the ending work in process inventory of the Welding Department that were 90% complete with respect to conversion costs. A total of $203,700 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs for the month is closest to:

Weighted-average method: Conversion Units transferred to the next department 93,300 Ending work in process: Conversion: 14,650 units × 90% 13,185 Equivalent units of production 106,485 Conversion Cost of beginning work in process inventory $ 8,000 Costs added during the period 203,700 Total cost (a) $ 211,700 Equivalent units of production (b) 106,485 Cost per equivalent unit (a) ÷ (b) $1.988

Domingo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 1,200 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $ 6,300 50% Conversion costs $ 2,500 20% A total of 7,600 units were started and 6,900 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Cost Materials costs $ 159,500 Conversion costs $ 121,200 The ending inventory was 85% complete with respect to materials and 75% complete with respect to conversion costs. The cost per equivalent unit for materials for the month in the first processing department is closest to:

Weighted-average method: Materials Units transferred to the next department 6,900 Ending work in process: Materials: 1,900 units × 85% 1,615 Equivalent units of production 8,515 Materials Cost of beginning work in process inventory $ 6,300 Costs added during the period 159,500 Total cost (a) $ 165,800 Equivalent units of production (b) 8,515 Cost per equivalent unit (a) ÷ (b) $19.47

Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 1,900 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $ 11,700 65% Conversion costs $ 13,900 30% A total of 9,600 units were started and 8,500 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Cost Materials costs $ 143,200 Conversion costs $ 360,600 The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs. The cost per equivalent unit for materials for the month in the first processing department is closest to:

Weighted-average method: Materials Units transferred to the next department 8,500 Ending work in process: Materials: 3,000 units × 50% 1,500 Equivalent units of production 10,000 Materials Cost of beginning work in process inventory $ 11,700 Costs added during the period 143,200 Total cost (a) $ 154,900 Equivalent units of production (b) 10,000 Cost per equivalent unit (a) ÷ (b) $15.49

Inacio Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 2,200 Materials costs $ 14,300 Conversion costs $ 6,400 Percent complete with respect to materials 75 % Percent complete with respect to conversion 20 % Units started into production during the month 10,900 Units transferred to the next department during the month 9,800 Materials costs added during the month $ 173,400 Conversion costs added during the month $ 243,400 Ending work in process inventory: Units in ending work in process inventory 3,300 Percent complete with respect to materials 90 % Percent complete with respect to conversion 30 % The cost per equivalent unit for materials for the month in the first processing department is closest to:

Weighted-average method: Materials Units transferred to the next department 9,800 Ending work in process: Materials: 3,300 units × 90% 2,970 Equivalent units of production 12,770 Materials Cost of beginning work in process inventory $ 14,300 Costs added during the period 173,400 Total cost (a) $ 187,700 Equivalent units of production (b) 12,770 Cost per equivalent unit (a) ÷ (b) $14.70

Kurtulus Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 1,000 Materials costs $ 7,400 Conversion costs $ 2,700 Percent complete with respect to materials 55 % Percent complete with respect to conversion 25 % Units started into production during the month 6,900 Units transferred to the next department during the month 6,100 Materials costs added during the month $ 110,500 Conversion costs added during the month $ 83,600 Ending work in process inventory: Units in ending work in process inventory 1,800 Percent complete with respect to materials 70 % Percent complete with respect to conversion 55 % The total cost transferred from the first processing department to the next processing department during the month is closest to: (Round your intermediate calculations to 3 decimal places.)

Weighted-average method: Materials Conversion Units transferred to the next department 6,100 6,100 Ending work in process: Materials: 1,800 units × 70% 1,260 Conversion: 1,800 units × 55% 990 Equivalent units of production 7,360 7,090 Materials Conversion Cost of beginning work in process inventory $ 7,400 $ 2,700 Costs added during the period 110,500 83,600 Total cost (a) $ 117,900 $ 86,300 Equivalent units of production (b) 7,360 7,090 Cost per equivalent unit (a) ÷ (b) $ 16.019 $ 12.172 Materials Conversion Total Units completed and transferred out: Units transferred to the next department (a) 6,100 6,100 Cost per equivalent unit (b) $ 16.019 $ 12.172 Cost of units completed and transferred out (a) × (b) $ 97,716 $ 74,249 $171,965

Kurtulus Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 1,700 Materials costs $ 8,100 Conversion costs $ 3,400 Percent complete with respect to materials 55 % Percent complete with respect to conversion 25 % Units started into production during the month 7,600 Units transferred to the next department during the month 6,800 Materials costs added during the month $ 111,200 Conversion costs added during the month $ 84,300 Ending work in process inventory: Units in ending work in process inventory 2,500 Percent complete with respect to materials 70 % Percent complete with respect to conversion 55 % The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: (Round your intermediate calculations to 3 decimal places.)

Weighted-average method: Materials Conversion Units transferred to the next department 6,800 6,800 Ending work in process: Materials: 2,500 units × 70% 1,750 Conversion: 2,500 units × 55% 1,375 Equivalent units of production 8,550 8,175 Materials Conversion Cost of beginning work in process inventory $ 8,100 $ 3,400 Costs added during the period 111,200 84,300 Total cost (a) $ 119,300 $ 87,700 Equivalent units of production (b) 8,550 8,175 Cost per equivalent unit (a) ÷ (b) $ 13.953 $ 10.728 Materials Conversion Total Ending work in process inventory: Equivalent units of production (a) 1,750 1,375 Cost per equivalent unit (b) $ 13.953 $ 10.728 Cost of ending work in process inventory (a) × (b) $ 24,418 $ 14,751 $39,169

Walbin Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 15,000 units, 100% complete with respect to materials cost and 40% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $24,000. A total of 47,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $2.00 for materials and $3.80 for conversion costs. The total cost of the units completed and transferred out of the department was:

Weighted-average method: Materials Conversion Total Units completed and transferred out: Units transferred to the next department (a) 47,000 47,000 Cost per equivalent unit (b) $ 2.00 $ 3.80 Cost of units completed and transferred out (a) × (b) $ 94,000 $ 178,600 $ 272,600

Mundes Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in its Painting Department consisted of 3,200 units that were 60% complete with respect to materials and 40% complete with respect to conversion costs. The cost of the beginning work in process inventory in the department was recorded as $10,000. During the period, 9,200 units were completed and transferred on to the next department. The costs per equivalent unit for the period were $5.20 for material and $6.20 for conversion costs. The cost of units transferred out during the month was:

Weighted-average method: Materials Conversion Total Units completed and transferred out: Units transferred to the next department (a) 9,200 9,200 Cost per equivalent unit (b) $ 5.20 $ 6.20 Cost of units completed and transferred out (a) × (b) $ 47,840 $ 57,040 $ 104,880

The Richmond Corporation uses the weighted-average method in its process costing system. The company has only a single processing department. The company's ending work in process inventory on August 31 consisted of 21,200 units. The units in the ending work in process inventory were 100% complete with respect to materials and 60% complete with respect to labor and overhead. If the cost per equivalent unit for August was $3.55 for materials and $5.05 for labor and overhead, the total cost assigned to the ending work in process inventory was:

Weighted-average method: Materials Labor and Overhead Ending work in process: Materials: 21,200 units × 100% 21,200 Conversion: 21,200 units × 60% 12,720 Equivalent units of production in ending work in process 21,200 12,720 Materials Labor and Overhead Total Ending work in process inventory: Equivalent units of production (a) 21,200 12,720 Cost per equivalent unit (b) $ 3.55 $ 5.05 Cost of ending work in process inventory (a) × (b) $ 75,260 $ 64,236 $ 139,496

In July, one of the processing departments at Okamura Corporation had beginning work in process inventory of $33,000 and ending work in process inventory of $38,000. During the month, the cost of units transferred out from the department was $168,000. In the department's cost reconciliation report for July, the total cost to be accounted for under the weighted-average method would be:

Weighted-average method: Costs to be accounted for as follows: Cost of ending work in process inventory $ 38,000 Cost of units transferred out 168,000 Total cost accounted for $206,000

In April, one of the processing departments at Terada Corporation had beginning work in process inventory of $22,000 and ending work in process inventory of $28,000. During the month, $245,000 of costs were added to production and the cost of units transferred out from the department was $239,000. In the department's cost reconciliation report for April, the total cost to be accounted for under the weighted-average method would be:

Weighted-average method: Costs to be accounted for: Cost of beginning work in process inventory $ 22,000 Costs added to production during the period 245,000 Total cost to be accounted for $267,000

Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 1,700 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $ 7,000 65% Conversion costs $ 8,100 45% A total of 9,100 units were started and 7,200 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Cost Materials costs $ 126,800 Conversion costs $ 208,300 The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs. The cost per equivalent unit for materials for the month in the first processing department is closest to:

Weighted-average method: Units in beginning work in process inventory + Units started into production or transferred in = Units in ending work in process inventory + Units completed and transferred out 1,700 + 9,100 = Units in ending work in process inventory + 7,200 Units in ending work in process inventory = 1,700 + 9,100 - 7,200 = 3,600 Materials Units transferred to the next department 7,200 Ending work in process: Materials: 3,600 units × 50% 1,800 Equivalent units of production 9,000 Materials Cost of beginning work in process inventory $ 7,000 Costs added during the period 126,800 Total cost (a) $ 133,800 Equivalent units of production (b) 9,000 Cost per equivalent unit (a) ÷ (b) $14.87

Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 900 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $ 6,200 65% Conversion costs $ 7,300 45% A total of 7,500 units were started and 6,400 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Cost Materials costs $ 126,000 Conversion costs $ 207,500 The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs. What are the equivalent units for conversion costs for the month in the first processing department?

On November 1, Arvelo Corporation had $42,000 of raw materials on hand. During the month, the company purchased an additional $68,000 of raw materials. During November, $75,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $5,000. Prepare journal entries to record these events. Use those journal entries to answer the following questions: The credits to the Raw Materials account for the month of November total:

Work in Process $ 70,000 Manufacturing Overhead $ 5,000 Raw Materials $ 75,000 $75,000

During March, Pendergraph Corporation incurred $69,000 of actual Manufacturing Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process was $71,000. The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:

Work in Process $ 71,000 Manufacturing Overhead $ 71,000 credit to Manufacturing Overhead of $71,000

During June, Buttrey Corporation incurred $70,000 of direct labor costs and $10,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a:

Work in Process 70,000 Manufacturing Overhead 10,000 Salaries and Wages Payable 80,000 debit to Work in Process of $70,000.

Fanelli Corporation, a merchandising company, reported the following results for July: Number of units sold 5,900 Selling price per unit $ 600 Unit cost of goods sold $ 411 Variable selling expense per unit $ 68 Total fixed selling expense $ 125,400 Variable administrative expense per unit $ 24 Total fixed administrative expense $ 207,300 Cost of goods sold is a variable cost in this company. Required: a. Prepare a traditional format income statement for July. b. Prepare a contribution format income statement for July.

a. Sales (5,900 units × $600 per unit) = $3,540,000 Cost of goods sold (5,900 units × $411 per unit) = $2,424,900 Selling expense ((5,900 units × $68 per unit) + $125,400) = $526,600 Administrative expense ((5,900 units × $24 per unit) + $207,300) = $348,900 b. Sales (5,900 units × $600 per unit) = $3,540,000 Cost of goods sold (5,900 units × $411 per unit) = $2,424,900 Variable selling expense (5,900 units × $68 per unit) = $401,200 Variable administrative expense (5,900 units × $24 per unit) = $141,600

Balerio Corporation's relevant range of activity is 9,000 units to 13,000 units. When it produces and sells 11,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.00 Direct labor $ 3.80 Variable manufacturing overhead $ 2.10 Fixed manufacturing overhead $ 14.00 Fixed selling expense $ 3.10 Fixed administrative expense $ 1.90 Sales commissions $ 0.60 Variable administrative expense $ 0.50 Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 11,000 units? (Do not round intermediate calculations.) b. If 10,000 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to 2 decimal places.) c. If 10,000 units are sold, what is the total amount of variable costs related to the units sold? (Do not round intermediate calculations.) d. If the selling price is $19.80 per unit, what is the contribution margin per unit sold? (Round "Per unit" answer to 2 decimal places.) e. What incremental manufacturing cost will the company incur if it increases production from 11,000 to 11,001 units? (Round "Per unit" answer to 2 decimal places.)

a. Direct materials $ 7.00 Direct labor 3.80 Variable manufacturing overhead 2.10 Variable manufacturing cost per unit $ 12.90 Total variable manufacturing cost ($12.90 per unit × 11,000 units produced) $ 141,900 Total fixed manufacturing overhead cost ($14.00 per unit × 11,000 units produced) 154,000 Total product (manufacturing) cost $295,900 b.Direct materials $ 7.00 Direct labor 3.80 Variable manufacturing overhead 2.10 Sales commissions 0.60 Variable administrative expense 0.50 Variable cost per unit sold $14.00 c.Variable cost per unit sold (a) $ 14.00 Number of units sold (b) 10,000 Total variable costs (a) × (b) $140,000 d.Selling price per unit $ 19.80 Direct materials $ 7.00 Direct labor 3.80 Variable manufacturing overhead 2.10 Sales commissions 0.60 Variable administrative expense 0.50 Variable cost per unit sold 14.00 Contribution margin per unit $5.80 e.Direct materials $ 7.00 Direct labor 3.80 Variable manufacturing overhead 2.10 Incremental manufacturing cost $12.90

Skolnick Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 5.40 Direct labor $ 3.60 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 112,000 Sales commissions $ 1.50 Variable administrative expense $ 0.50 Fixed selling and administrative expense $ 32,200 Required: a. If 7,000 units are produced, what is the total amount of direct manufacturing cost incurred? (Do not round intermediate calculations.) b. If 7,000 units are produced, what is the total amount of indirect manufacturing costs incurred?

a.Direct materials $ 5.40 Direct labor 3.60 Direct manufacturing cost per unit (a) $ 9.00 Number of units produced (b) 7,000 Total direct manufacturing cost (a) × (b) $63,000 b. Total variable manufacturing overhead cost ($1.70 per unit × 7,000 units) $ 11,900 Total fixed manufacturing overhead cost 112,000 Total indirect manufacturing cost $123,900

Hultquist Corporation has two manufacturing departments--Forming and Customizing. The company used the following data at the beginning of the period to calculate predetermined overhead rates: Forming Customizing Total Estimated total machine-hours (MHs) 4,000 6,000 10,000 Estimated total fixed manufacturing overhead cost $ 12,800 $ 18,600 $ 31,400 Estimated variable manufacturing overhead cost per MH $ 3.00 $ 6.00 During the period, the company started and completed two jobs--Job C and Job L. Data concerning those two jobs follow: Job C Job L Direct materials $ 14,300 $ 8,000 Direct labor cost $ 21,200 $ 8,100 Forming machine-hours 2,500 1,500 Customizing machine-hours 2,500 3,500 Required: a. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate that overhead rate. (Round your answer to 2 decimal places.) b. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the amount of manufacturing overhead applied to Job L. (Do not round intermediate calculations.) c. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the total manufacturing cost assigned to Job L. (Do not round intermediate calculations.) d. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 80% on manufacturing cost to establish selling prices. Calculate the selling price for Job L. (Do not round intermediate calculations.) e. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. What is the departmental predetermined overhead rate in the Forming department? (Round your answer to 2 decimal places.) f. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. What is the departmental predetermined overhead rate in the Customizing department? (Round your answer to 2 decimal places.) g. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. How much manufacturing overhead will be applied to Job L? (Do not round intermediate calculations.) h. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. Further assume that the company uses a markup of 80% on manufacturing cost to establish selling prices. Calculate the selling price for Job L. (Do not round intermediate calculations.)

a.The first step is to calculate the estimated total overhead costs in the two departments. Forming Estimated fixed manufacturing overhead $ 12,800 Estimated variable manufacturing overhead ($3.00 per MH × 4,000 MHs) 12,000 Estimated total manufacturing overhead cost $ 24,800 Customizing Estimated fixed manufacturing overhead $ 18,600 Estimated variable manufacturing overhead ($6.00 per MH × 6,000 MHs) 36,000 Estimated total manufacturing overhead cost $ 54,600 The second step is to combine the estimated manufacturing overhead costs in the two departments ($24,800 + $54,600 = $79,400) to calculate the plantwide predetermined overhead rate as follow: Estimated total manufacturing overhead cost $ 79,400 Estimated total machine hours 10,000 MHs Predetermined overhead rate $7.94 per MH b.The overhead applied to Job L is calculated as follows: Overhead applied to a particular job = Predetermined overhead rate × Machine-hours incurred by the job = $7.94 per MH × (1,500 MHs + 3,500 MHs) = $7.94 per MH × (5,000 MHs) = $39,700 c.Job L's manufacturing cost: Direct materials $ 8,000 Direct labor cost 8,100 Manufacturing overhead applied 39,700 Total manufacturing cost $55,800 d.The selling price for Job L: Total manufacturing cost $ 55,800 Markup (80%) 44,640 Selling price $100,440 e.Forming Department predetermined overhead rate: Estimated fixed manufacturing overhead $ 12,800 Estimated variable manufacturing overhead ($3.00 per MH × 4,000 MHs) 12,000 Estimated total manufacturing overhead cost (a) $ 24,800 Estimated total machine-hours (b) 4,000 MHs Departmental predetermined overhead rate (a) ÷ (b) $6.20 per MH f.Customizing Department predetermined overhead rate: Estimated fixed manufacturing overhead $ 18,600 Estimated variable manufacturing overhead ($6.00 per MH × 6,000 MHs) 36,000 Estimated total manufacturing overhead cost (a) $ 54,600 Estimated total machine-hours (b) 6,000 MHs Departmental predetermined overhead rate (a) ÷ (b) $9.10per MH g.Manufacturing overhead applied to Job L: Forming ($6.20 per MH × 1,500 MHs) $ 9,300 Customizing ($9.10 per MH × 3,500 MHs) 31,850 Total manufacturing overhead applied $41,150 h.The selling price for Job L would be calculated as follows: Direct materials $ 8,000 Direct labor cost 8,100 Manufacturing overhead applied 41,150 Total manufacturing cost $ 57,250 Markup (80%) 45,800 Selling price $103,050

Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Machining Finishing Total Estimated total machine-hours (MHs) 5,000 5,000 10,000 Estimated total fixed manufacturing overhead cost $ 6,500 $ 29,500 $ 36,000 Estimated variable manufacturing overhead cost per MH $ 2.00 $ 4.00 During the most recent month, the company started and completed two jobs--Job B and Job K. There were no beginning inventories. Data concerning those two jobs follow: Job B Job K Direct materials $ 16,200 $ 8,400 Direct labor cost $ 22,700 $ 2,500 Machining machine-hours 4,000 1,000 Finishing machine-hours 1,000 4,000 Required: a. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate that overhead rate. (Round your answer to 2 decimal places.) b. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the amount of manufacturing overhead applied to Job B. (Do not round intermediate calculations.) c. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the amount of manufacturing overhead applied to Job K. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) d. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. What is the departmental predetermined overhead rate in the Machining department? (Round your answer to 2 decimal places.) e. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. What is the departmental predetermined overhead rate in the Finishing department? (Round your answer to 2 decimal places.) f. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. How much manufacturing overhead will be applied to Job B? (Do not round intermediate calculations.) g. Assume that the company uses depa]]rtmental predetermined overhead rates with machine-hours as the allocation base in both production departments. How much manufacturing overhead will be applied to Job K?. (Do not round intermediate calculations.)

a.The first step is to calculate the estimated total overhead costs in the two departments. Machining Estimated fixed manufacturing overhead $ 6,500 Estimated variable manufacturing overhead ($2.00 per MH × 5,000 MHs) 10,000 Estimated total manufacturing overhead cost $ 16,500 Finishing Estimated fixed manufacturing overhead $ 29,500 Estimated variable manufacturing overhead ($4.00 per MH × 5,000 MHs) 20,000 Estimated total manufacturing overhead cost $ 49,500 The second step is to combine the estimated manufacturing overhead costs in the two departments ($16,500 + $49,500 = $66,000) to calculate the plantwide predetermined overhead rate as follows: Estimated total manufacturing overhead cost $ 66,000 Estimated total machine hours 10,000 MHs Predetermined overhead rate $6.60 per MH b.The overhead applied to Job B is calculated as follows: Overhead applied to a particular job = Predetermined overhead rate × Machine-hours incurred by the job = $6.60 per MH × (4,000 MHs + 1,000 MHs) = $6.60 per MH × (5,000 MHs) = $33,000 c.The overhead applied to Job K is calculated as follows: Overhead applied to a particular job = Predetermined overhead rate × Machine-hours incurred by the job = $6.60 per MH × (1,000 MHs + 4,000 MHs) = $6.60 per MH × (5,000 MHs) = $33,000 d.Machining Department predetermined overhead rate: Estimated fixed manufacturing overhead $ 6,500 Estimated variable manufacturing overhead ($2.00 per MH × 5,000 MHs) 10,000 Estimated total manufacturing overhead cost (a) $ 16,500 Estimated total machine-hours (b) 5,000 MHs Departmental predetermined overhead rate (a) ÷ (b) $3.30 per MH e.Finishing Department predetermined overhead rate: Estimated fixed manufacturing overhead $ 29,500 Estimated variable manufacturing overhead ($4.00 per MH × 5,000 MHs) 20,000 Estimated total manufacturing overhead cost (a) $ 49,500 Estimated total machine-hours (b) 5,000 MHs Departmental predetermined overhead rate (a) ÷ (b) $9.90 per MH f.Manufacturing overhead applied to Job B: Machining ($3.30 per MH × 4,000 MHs) $ 13,200 Finishing ($9.90 per MH × 1,000 MHs) 9,900 Total manufacturing overhead applied $23,100 g.Manufacturing overhead applied to Job K: Machining ($3.30 per MH × 1,000 MHs) $ 3,300 Finishing ($9.90 per MH × 4,000 MHs) 39,600 Total manufacturing overhead applied $42,900

Harnett Corporation has two manufacturing departments--Molding and Assembly. The company used the following data at the beginning of the period to calculate predetermined overhead Molding Assembly Total Estimated total machine-hours (MHs) 6,000 4,000 10,000 Estimated total fixed manufacturing overhead cost $ 43,800 $ 21,600 $ 65,400 Estimated variable manufacturing overhead cost per MH $ 2.50 $ 5.00 During the period, the company started and completed two jobs--Job E and Job M. Data concerning those two jobs follow: Job E Job M Direct materials $ 13,700 $ 7,700 Direct labor cost $ 20,800 $ 7,600 Molding machine-hours 2,500 3,500 Assembly machine-hours 2,500 1,500 Required: a. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate that overhead rate. (Round your answer to 2 decimal places.) b. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the amount of manufacturing overhead applied to Job E. (Do not round intermediate calculations.) c. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the total manufacturing cost assigned to Job E. (Do not round intermediate calculations.) d. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 20% on manufacturing cost to establish selling prices. Calculate the selling price for Job E. (Do not round intermediate calculations.) e. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. What is the departmental predetermined overhead rate in the Molding department? (Round your answer to 2 decimal places.) f. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. What is the departmental predetermined overhead rate in the Assembly department? (Round your answer to 2 decimal places.) g. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. How much manufacturing overhead will be applied to Job E? (Do not round intermediate calculations.) h. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. Further assume that the company uses a markup of 20% on manufacturing cost to establish selling prices. Calculate the selling price for Job E. (Do not round intermediate calculations.)

a.The first step is to calculate the estimated total overhead costs in the two departments. Molding Estimated fixed manufacturing overhead $ 43,800 Estimated variable manufacturing overhead ($2.50 per MH × 6,000 MHs) 15,000 Estimated total manufacturing overhead cost $ 58,800 Assembly Estimated fixed manufacturing overhead $ 21,600 Estimated variable manufacturing overhead ($5.00 per MH × 4,000 MHs) 20,000 Estimated total manufacturing overhead cost $ 41,600 The second step is to combine the estimated manufacturing overhead costs in the two departments ($58,800 + $41,600 = $100,400) to calculate the plantwide predetermined overhead rate as follow: Estimated total manufacturing overhead cost $ 100,400 Estimated total machine hours 10,000 MHs Predetermined overhead rate $10.04 per MH b.The overhead applied to Job E is calculated as follows: Overhead applied to a particular job = Predetermined overhead rate × Machine-hours incurred by the job = $10.04 per MH × (2,500 MHs + 2,500 MHs) = $10.04 per MH × (5,000 MHs) = $50,200 c.Job E's manufacturing cost: Direct materials $ 13,700 Direct labor cost 20,800 Manufacturing overhead applied 50,200 Total manufacturing cost $84,700 d.The selling price for Job E: Total manufacturing cost $ 84,700 Markup (20%) 16,940 Selling price $101,640 e.Molding Department predetermined overhead rate: Estimated fixed manufacturing overhead $ 43,800 Estimated variable manufacturing overhead ($2.50 per MH × 6,000 MHs) 15,000 Estimated total manufacturing overhead cost (a) $ 58,800 Estimated total machine-hours (b) 6,000 MHs Departmental predetermined overhead rate (a) ÷ (b) $9.80 per MH f.Assembly Department predetermined overhead rate: Estimated fixed manufacturing overhead $ 21,600 Estimated variable manufacturing overhead ($5.00 per MH × 4,000 MHs) 20,000 Estimated total manufacturing overhead cost (a) $ 41,600 Estimated total machine-hours (b) 4,000 MHs Departmental predetermined overhead rate (a) ÷ (b) $10.40 per MH g.Manufacturing overhead applied to Job E: Molding ($9.80 per MH × 2,500 MHs) $ 24,500 Assembly ($10.40 per MH × 2,500 MHs) 26,000 Total manufacturing overhead applied $50,500 h.The selling price for Job E would be calculated as follows: Direct materials $ 13,700 Direct labor cost 20,800 Manufacturing overhead applied 50,500 Total manufacturing cost $ 85,000 Markup (20%) 17,000 Selling price $102,000

Angel Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system: Activity Cost Pools (and Activity Measures) Estimated Overhead Cost Machine related (machine-hours) $ 298,800 Batch setup (setups) $ 325,200 Order size (direct labor-hours) $ 227,700 Expected Activity Activity Cost Pools Product X Product Y Total Machine related 5,000 7,000 12,000 Batch setup 10,000 2,000 12,000 Order size 4,000 7,000 11,000 Assuming that actual activity turns out to be the same as expected activity, the total amount of overhead cost allocated to Product X would be closest to: (Round your intermediate calculations to 2 decimal places.)

Activity Cost Pools (a) Estimated Overhead Cost (b) Total Expected Activity (a) ÷ (b) Activity Rate Machine related $ 298,800 12,000 MHs $ 24.90 per MH Batch setup $ 325,200 12,000 setups $ 27.10 per setup Order size $ 227,700 11,000 DLHs $ 20.70 per DLH Product X Activity Cost Pools and Activity Rates Expected Activity Amount Machine related ($24.90 per MH) 5,000 $ 124,500 Batch setup ($27.10 per setup) 10,000 271,000 Order size ($20.70 per DLH) 4,000 82,800 Total overhead costs assigned $478,300

Abbe Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 2,700 units and of Product B is 1,500 units. There are three activity cost pools, with estimated costs and expected activity as follows: Activity Cost Pools Estimated Overhead Cost Expected Activity Product A Product B Total Activity 1 $ 92,063 2,200 2,100 4,300 Activity 2 $ 116,739 3,200 1,900 5,100 Activity 3 $ 128,186 1,080 1,060 2,140 The overhead cost per unit of Product B is closest to: (Round your intermediate calculations to 2 decimal places.)

Activity Cost Pools (a) Estimated Overhead Cost (b) Total Expected Activity (a) ÷ (b) Activity Rate Activity 1 $ 92,063 4,300 $ 21.41 Activity 2 $ 116,739 5,100 $ 22.89 Activity 3 $ 128,186 2,140 $ 59.90 Product B Activity Cost Pools and Activity Rates Expected Activity Amount Activity 1 ($21.41) 2,100 $ 44,961 Activity 2 ($22.89) 1,900 43,491 Activity 3 ($59.90) 1,060 63,494 Total overhead costs assigned (a) $ 151,946 Number of units produced (b) 1,500 Overhead cost per unit (a) ÷ (b) $101.30

Merone Company allocates materials handling cost to the company's two products using the below data: Modular Homes Prefab Barns Total expected units produced 5,500 8,500 Total expected material moves 550 150 Expected direct labor-hours per unit 750 250 The total materials handling cost for the year is expected to be $250,000. If the materials handling cost is allocated on the basis of material moves, the total materials handling cost allocated to the modular homes is closest to: (Round your intermediate calculations to 2 decimal places.)

Activity rate = $250,000 ÷ (550 material moves + 150 material moves) = $357.14 per material move Materials handling cost allocated to Modular Homes = $357.14 per material move × 550 material moves = $196,427.00

Adelberg Company has two products: A and B. The annual production and sales of Product A is 2,400 units and of Product B is 1,800 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.5 direct labor-hours per unit and Product B requires 0.8 direct labor-hours per unit. The total estimated overhead for next period is $106,575. The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools--Activity 1, Activity 2, and Order Size--with estimated overhead costs and expected activity as follows: Estimated Expected Activity Activity Cost Pools Overhead Costs Product A Product B Total Activity 1 $ 32,932 1,700 1,300 3,000 Activity 2 18,757 2,400 900 3,300 Order Size 54,886 1,200 1,440 2,640 Total $ 106,575 (Note: The Order Size activity cost pool's costs are allocated on the basis of direct labor-hours.) The predetermined overhead rate (i.e., activity rate) for Activity 2 under the activity-based costing system is closest to:

Activity rate = Estimated overhead cost ÷ Expected activity = $18,757 ÷ 3,300 = $5.68

Privott, Inc., manufactures and sells two products: Product Z9 and Product N0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product Z9 Product N0 Total Labor-related DLHs $ 342,018 8,200 4,800 13,000 Product testing tests 54,747 1,300 1,400 2,700 Order size MHs 480,108 5,800 6,100 11,900 $876,873 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:

Activity rate = Estimated overhead cost ÷ Total expected activity = $342,018 ÷ 13,000 DLHs = $26.31 per DLH

Snavely, Inc., manufactures and sells two products: Product E1 and Product A7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product E1 600 8.0 4,800 Product A7 300 4.0 1,200 Total direct labor-hours 6,000 The direct labor rate is $24.90 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit Product E1 $206.00 Product A7 $225.00 The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product E1 Product A7 Total Labor-related DLHs $ 109,600 4,800 1,200 6,000 Machine setups setups 51,690 700 300 1,000 Order size MHs 808,470 2,800 3,500 6,300 $969,760 The activity rate for the Order Size activity cost pool under activity-based costing is closest to:

Activity rate = Estimated overhead cost ÷ Total expected activity = $808,470 ÷ 6,300 MHs = $128.33 per MH

A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $3,360 and is paid at the beginning of the first year. Seventy percent of the premium applies to manufacturing operations and thirty percent applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage? Product Period A) $3,360 $0 B) $2,352 $1,008 C) $1,568 $672 D) $784 $336

Annual insurance expense = $3,360 ÷ 3 = $1,120 Portion applicable to product cost = 0.70 × $1,120 = $784 Portion applicable to period cost = 0.30 × $1,120 = $336 Choice D

Dacosta Corporation had only one job in process on May 1. The job had been charged with $1,900 of direct materials, $6,966 of direct labor, and $9,964 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $18.60 per direct labor-hour. During May, the following activity was recorded: Raw materials (all direct materials): Beginning balance $ 8,600 Purchased during the month $ 38,100 Used in production $ 39,400 Labor: Direct labor-hours worked during the month 2,000 Direct labor cost incurred $ 24,610 Actual manufacturing overhead costs incurred $ 33,400 Inventories: Raw materials, May 30 ? Work in process, May 30 $ 16,963 Work in process inventory on May 30 contains $3,759 of direct labor cost. Raw materials consist solely of items that are classified as direct materials. The cost of goods manufactured for May was:

Beginning work in process inventory = $1,900 + $6,966 + $9,964 = $18,830 Direct materials used in production $ 39,400 Direct labor 24,610 Manufacturing overhead ($18.60 per direct labor-hour × 2,000 direct labor-hours) 37,200 Total manufacturing costs 101,210 Add: Beginning work in process 18,830 120,040 Deduct: Ending work in process 16,963 Cost of goods manufactured $103,077

Awtis Corporation has a margin of safety percentage of 25% based on its actual sales. The break-even point is $240,000 and the variable expenses are 45% of sales. Given this information, the actual profit is:

CM ratio = 1 - Variable expense ratio = 1 - 0.45 = 0.55 Dollar sales to break even = Fixed expenses ÷ CM ratio $240,000 = Fixed expenses ÷ 0.55 Fixed expenses = $240,000 × 0.55 = $132,000 Margin of safety in dollars = Total actual sales - Break-even sales Margin of safety percentage = Margin of safety in dollars ÷ Total actual sales Margin of safety percentage = (Total actual sales - Break-even sales) ÷ Total actual sales Margin of safety percentage = 1 - Break-even sales ÷ Total actual sales Break-even sales ÷ Total actual sales = 1 - Margin of safety percentage Total actual sales = Break-even sales ÷ (1 - Margin of safety percentage) = $240,000 ÷ (1 - 0.25) = $320,000 Profit = (CM ratio × Sales) - Fixed expenses = (0.55 × $320,000) - $132,000 = $44,000

Schister Systems uses the following data in its Cost-Volume-Profit analyses: Total Sales $ 400,000 Variable expenses 220,000 Contribution margin 180,000 Fixed expenses 120,000 Net operating income $ 60,000 What is total contribution margin if sales volume increases by 30%?

CM ratio = Contribution margin ÷ Sales = $180,000 ÷ $400,000 = 0.45 Contribution margin = CM ratio × Sales Contribution margin = 0.45 × (1.3 × $400,000) = $234,000

Wimpy Inc. produces and sells a single product. The selling price of the product is $150.00 per unit and its variable cost is $60.00 per unit. The fixed expense is $340,560 per month. The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)

CM ratio = Unit contribution margin ÷ Unit selling price = ($150.00 per unit - $60.00 per unit) ÷ $150.00 per unit = $90.00 per unit ÷ $150.00 per unit = 0.60 Dollar sales to break even = Fixed expenses ÷ CM ratio = $340,560 ÷ 0.60 = $567,600

Data concerning Follick Corporation's single product appear below: Selling price per unit $ 190.00 Variable expense per unit $ 70.30 Fixed expense per month $ 132,930 The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)

CM ratio = Unit contribution margin ÷ Unit selling price = ($190.00 per unit - $70.30 per unit) ÷ $190.00 per unit = $119.70 per unit ÷ $190.00 per unit = 0.63 Dollar sales to break even = Fixed expenses ÷ CM ratio = $132,930 ÷ 0.63 = $211,000

Snavely, Inc., manufactures and sells two products: Product E1 and Product A7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product E1 600 8.0 4,800 Product A7 300 4.0 1,200 Total direct labor-hours 6,000 The direct labor rate is $24.90 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit Product E1 $206.00 Product A7 $225.00 The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product E1 Product A7 Total Labor-related DLHs $ 109,600 4,800 1,200 6,000 Machine setups setups 51,690 700 300 1,000 Order size MHs 808,470 2,800 3,500 6,300 $969,760 The total overhead applied to Product E1 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

Computation of activity rates: Activity Cost Pools (a) Estimated Overhead Cost (b) Total Expected Activity (a) ÷ (b) Activity Rate Labor-related $ 109,600 6,000 DLHs $ 18.27 per DLH Machine setups $ 51,690 1,000 setups $ 51.69 per setup Order size $ 808,470 6,300 MHs $ 128.33 per MH Computation of the overhead cost under activity-based costing. Product E1 Activity Cost Pools and Activity Rates Expected Activity Amount Labor-related, at $18.27 per DLH 4,800 $ 87,696 Machine setups, at $51.69 per setup 700 36,183 Order size, $128.33 per MH 2,800 359,324 Total overhead costs assigned $483,203

Weirick, Inc., manufactures and sells two products: Product T8 and Product P4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product T8 Product P4 Total Labor-related DLHs $ 135,700 10,000 5,000 15,000 Production orders orders 64,000 1,100 200 1,300 Order size MHs 1,001,010 2,800 3,200 6,000 $ 1,200,710 The total overhead applied to Product P4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

Computation of activity rates: Activity Cost Pools (a) Estimated Overhead Cost (b) Total Expected Activity (a) ÷ (b) Activity Rate Labor-related $ 135,700 15,000 DLHs $ 9.05 per DLH Production orders $ 64,000 1,300 orders $ 49.23 per order Order size $ 1,001,010 6,000 MHs $ 166.84 per MH Computation of the overhead cost under activity-based costing. Product P4 Activity Cost Pools and Activity Rates Expected Activity Amount Labor-related, at $9.05 per DLH 5,000 $ 45,250 Production orders, at $49.23 per order 200 9,846 Order size, $166.84 per MH 3,200 533,888 Total overhead costs assigned $588,984

Fleurant, Inc., manufactures and sells two products: Product W2 and Product P8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product W2 400 5 2,000 Product P8 500 4 2,000 Total direct labor-hours 4,000 The direct labor rate is $37.10 per DLH. The direct materials cost per unit is $203.60 for Product W2 and $140.30 for Product P8. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product W2 Product P8 Total Labor-related DLHs $ 218,576 2,000 2,000 4,000 Production orders orders 18,538 480 380 860 Order size MHs 202,886 3,880 3,680 7,560 $440,000 The overhead applied to each unit of Product W2 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

Computation of activity rates: Activity Cost Pools (a) Estimated Overhead Cost (b) Total Expected Activity (a) ÷ (b) Activity Rate Labor-related $ 218,576 4,000 DLHs $ 54.64 per DLH Production orders $ 18,538 860 orders $ 21.56 per order Order size $ 202,886 7,560 MHs $ 26.84 per MH Computation of the overhead cost per unit under activity-based costing. Product W2 Activity Cost Pools and Activity Rates Expected Activity Amount Labor-related, at $54.64 per DLH 2,000 $ 109,280.00 Production orders, at $21.56 per order 480 10,348.80 Order size, $26.84 per MH 3,880 104,139.20 Total overhead costs assigned (a) $ 223,768.00 Number of units produced (b) 400 Overhead cost per unit (a) ÷ (b) $559.42

Chhom, Inc., manufactures and sells two products: Product F9 and Product U4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product F9 300 4.0 1,200 Product U4 600 2.0 1,200 Total direct labor-hours 2,400 The direct labor rate is $26.70 per DLH. The direct materials cost per unit is $202 for Product F9 and $264 for Product U4. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product F9 Product U4 Total Labor-related DLHs $ 36,800 1,200 1,200 2,400 Production orders orders 58,420 400 600 1,000 Order size MHs 119,050 3,600 3,500 7,100 $ 214,270 The overhead applied to each unit of Product U4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

Computation of activity rates: Activity Cost Pools (a) Estimated Overhead Cost (b) Total Expected Activity (a) ÷ (b) Activity Rate Labor-related $ 36,800 2,400 DLHs $ 15.33 per DLH Production orders $ 58,420 1,000 orders $ 58.42 per order Order size $ 119,050 7,100 MHs $ 16.77 per MH Computation of the overhead cost per unit under activity-based costing. Product U4 Activity Cost Pools and Activity Rates Expected Activity Amount Labor-related, at $15.33 per DLH 1,200 $ 18,396 Production orders, at $58.42 per order 600 35,052 Order size, $16.77 per MH 3,500 58,695 Total overhead costs assigned (a) $ 112,143 Number of units produced (b) 600 Overhead cost per unit (a) ÷ (b) $186.91

Mahaley, Inc., manufactures and sells two products: Product Q9 and Product F0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product Q9 920 9.2 8,464 Product F0 920 7.2 6,624 Total direct labor-hours 15,088 The direct labor rate is $23.00 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit Product Q9 $176.10 Product F0 $147.90 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product Q9 Product F0 Total Labor-related DLHs $ 391,680 8,464 6,624 15,088 Machine setups setups 49,830 900 800 1,700 Order size MHs 290,700 4,300 4,100 8,400 $ 732,210 The unit product cost of Product F0 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

Computation of activity rates: Activity Cost Pools (a) Estimated Overhead Cost (b) Total Expected Activity (a) ÷ (b) Activity Rate Labor-related $ 391,680 15,088 DLHs $ 25.96 per DLH Machine setups $ 49,830 1,700 setups $ 29.31 per setup Order size $ 290,700 8,400 MHs $ 34.61 per MH Computation of the overhead cost per unit under activity-based costing. Product F0 Activity Cost Pools and Activity Rates Expected Activity Amount Labor-related, at $25.96 per DLH 6,624 $ 171,959.04 Machine setups, at $29.31 per setup 800 23,448.00 Order size, $34.61 per MH 4,100 141,901.00 Total overhead costs assigned (a) $ 337,308.04 Number of units produced (b) 920 Overhead cost per unit (a) ÷ (b) $ 366.64 Computation of unit product costs under activity-based costing. Product F0 Direct materials $ 147.90 Direct labor (7.2 DLHs × $23.00 per DLH) 165.60 Overhead 366.64 Unit product cost $680.14

Olmo, Inc., manufactures and sells two products: Product K0 and Product H9. The annual production and sales of Product of K0 is 1,200 units and of Product H9 is 1,200 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity Product K0 Product H9 Total Labor-related DLHs $ 550,008 4,800 2,400 7,200 Production orders orders 53,019 1,300 200 1,500 Order size MHs 835,616 3,900 3,500 7,400 $1,438,643 The overhead applied to each unit of Product H9 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

Computation of activity rates: Activity Cost Pools (a) Estimated Overhead Cost (b) Total Expected Activity (a) ÷ (b) Activity Rate Labor-related $ 550,008 7,200 DLHs $ 76.39 per DLH Production orders $ 53,019 1,500 orders $ 35.35 per order Order size $ 835,616 7,400 MHs $ 112.92 per MH Computation of the overhead cost per unit under activity-based costing. Product H9 Activity Cost Pools and Activity Rates Expected Activity Amount Labor-related, at $76.39 per DLH 2,400 $ 183,336 Production orders, at $35.35 per order 200 7,070 Order size, $112.92 per MH 3,500 395,220 Total overhead costs assigned (a) $ 585,626 Number of units produced (b) 1,200 Overhead cost per unit (a) ÷ (b) $488.02

Alpha Corporation reported the following data for its most recent year: sales, $510,000; variable expenses, $360,000; and fixed expenses, $100,000. The company's degree of operating leverage is closest to:

Contribution margin = Sales - Variable expenses = $510,000 - $360,000 = $150,000 Profit = Contribution margin - Fixed expenses = $150,000 - $100,000 = $50,000 Degree of operating leverage = Contribution margin ÷ Net operating income = $150,000 ÷ $50,000 = 3.00

A cement manufacturer has supplied the following data: Tons of cement produced and sold 265,000 Sales revenue $ 969,000 Variable manufacturing expense $ 230,000 Fixed manufacturing expense $ 307,000 Variable selling and administrative expense $ 196,360 Fixed selling and administrative expense $ 91,000 Net operating income $ 144,640 The company's contribution margin ratio is closest to:

Contribution margin = Sales - Variable expenses = $969,000 - ($230,000 + $196,360) = $969,000 - $426,360 = $542,640 CM ratio = Contribution margin ÷ Sales = $542,640 ÷ $969,000 = 0.56 56%

Bristo Corporation has sales of 1,250 units at $60 per unit. Variable expenses are 40% of the selling price. If total fixed expenses are $35,000, the degree of operating leverage is:

Contribution margin = Sales - Variable expenses = (1,250 units × $60 per unit) - (1,250 units × 0.40 × $60 per unit) = $75,000 - $30,000 = $45,000 Net operating income = Contribution margin - Fixed expenses = $45,000 - $35,000 = $10,000 Degree of operating leverage = Contribution margin ÷ Net operating income = $45,000 ÷ $10,000 = 4.50

Job 652 was recently completed. The following data have been recorded on its job cost sheet: Direct materials $ 66,400 Direct labor-hours 1,238 DLHs Direct labor wage rate $ 12 per DLH Number of units completed 5,000 units The company applies manufacturing overhead on the basis of direct labor-hours. The predetermined overhead rate is $36 per direct labor-hour. Required: Compute the unit product cost that would appear on the job cost sheet for this job. (Round your answer to 2 decimal places.)

Cost Summary Direct materials $ 66,400 Direct labor ($12 per DLH × 1,238 DLHs) 14,856 Manufacturing overhead ($36 per DLH × 1,238 DLHs) 44,568 Total product cost $ 125,824 Unit product cost $25.16

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