Question :
150. Outer Limits, Inc. produces fencing units which require two : 1256560
150. Outer Limits, Inc. produces fencing units which require two processes, A and B, to complete. The best-selling type of fence is made of pvc. Information related to the 8,000 units of pvc fencing produced annually is shown below.
Direct materials
$450,000
Direct labor
Department A (5,000 DLH x $23 per DLH)
$115,000
Department B (4,000 DLH x $25 per DLH)
$100,000
Machine hours
Department A
2,000 MH
Department B
3,000 MH
Outer Limits’ total expected overhead costs and related overhead data are shown below. The company uses departmental overhead rates based on machine hours in department A and direct labor hours in department B.
Department A
Department B
Direct labor hours
9,000 DLH
7,000 DLH
Machine hours
6,500 MH
13,000 MH
Manufacturing overhead costs
$54,600
$67,060
Determine the total amount of overhead assigned to each unit of pvc fencing.
151. A company’s total expected overhead costs and related overhead data are shown below.
Department A
Department B
Direct labor hours
75,000 DLH
30,000 DLH
Machine hours
3,000 MH
6,000 MH
Manufacturing overhead costs
?
?
Departmental overhead rate
$2.40 per DLH
$36 per MH
a. Compute estimated manufacturing overhead costs for Department A.b. Compute estimated manufacturing overhead costs for Department B.
152. A company’s total expected overhead costs and related overhead data are shown in the following table:
Department A
Department B
Direct labor hours
85,000 DLH
72,000 DLH
Machine hours
79,050 MH
37,395 MH
Manufacturing overhead costs
?
?
Departmental overhead rate
$4 per MH
$8.31 per DLH
a. Compute estimated manufacturing overhead costs for Department A.(b. Compute estimated manufacturing overhead costs for Department B.c. Compute the departmental overhead rate based on direct labor hours for Department A.d. Compute the departmental overhead rate based on machine hours for Department B.
153. Rising Sun, Inc. produces granola that requires two processes, mixing and baking, to complete. The best-selling type of granola is cherry almond delight. Information related to the 100,000 units of cherry almond delight produced annually is shown in the following table:
Direct materials
$230,000
Direct labor
Mixing Department (600 DLH x $24 per DLH)
$14,400
Baking Department (400 DLH x $22 per DLH)
$8,800
Machine hours
Mixing Department
200 MH
Baking Department
300 MH
Rising Sun’s total expected overhead costs and related overhead data are shown below. The company uses departmental overhead rates based on machine hours in the mixing department and direct labor hours in the baking department.
Mixing Department
Baking Department
Direct labor hours
11,000 DLH
5,000 DLH
Machine hours
4,000 MH
3,000 MH
Manufacturing overhead costs
$80,000
$12,500
Determine the total product cost of this product line and each unit of cherry almond delight.
154. Slosh, Inc. produces washing machines that require two processes, assembling and finishing, to complete. The company’s bestselling machine is the commercial washer. Information related to the 500 commercial washers produced annually is shown below.
Direct materials
$161,000
Direct labor
Assembling Department (1,000 DLH x $25 per DLH)
$25,000
Finishing Department (250 DLH x $22 per DLH)
$5,500
Machine hours
Assembling Department
1,500 MH
Finishing Department
400 MH
Slosh’s total expected overhead costs and related overhead data are shown below. The company uses departmental overhead rates based on direct labor hours in the Assembling Department and machine hours in the Finishing Department.
Assembling Department
Finishing
Department
Direct labor hours
50,000 DLH
275,000 DLH
Machine hours
37,500 MH
8,000 MH
Manufacturing overhead costs
$4,000,000
$60,000
Determine the total product cost of this product line and each individual commercial washer.
