Question :
145. Time Bender Company makes watches and clocks. The following : 1256559
145. Time Bender Company makes watches and clocks. The following estimated data are available for the company’s next fiscal year:Total direct labor costs: $1,700,000Total setup costs: $190,000
Watches
Clocks
Expected production
800,000
100,000
Direct labor hours needed
68,000 DLH
17,000 DLH
Machine setups needed
1,000 setups
1,000 setups
Determine the setup cost per unit for the watches and the clocks if setup costs are assigned using a plantwide overhead rate based on direct labor hours. (Round to two decimal places.)
146. Base Runner, Inc. manufactures baseball bats that go through two operations, cutting and sanding, before they are complete. Expected costs and activities for the two departments are shown in the following table:
Cutting
Sanding
Direct labor hours
50,000 DLH
5,000 DLH
Machine hours
25,000 MH
50,000 MH
Overhead costs
$50,000
$37,500
a. Compute a departmental overhead rate for the cutting department based on machine hours.b. Compute a departmental overhead rate for the sanding department based on machine hours.
147. Blast Rocket Company manufactures candy-coated popcorn treats that go through two operations, popping and baking, before they are complete. Expected costs and activities for the two departments are shown in the following table:
Popping
Baking
Direct labor hours
238,000 DLH
50,000 DLH
Machine hours
25,000 MH
141,500 MH
Overhead costs
$357,000
$452,800
a. Compute a departmental overhead rate for the popping department based on direct labor hours.b. Compute a departmental overhead rate for the baking department based on machine hours.
148. Freeze Frame, Inc. produces cameras that require three processes, A, B, and C, to complete. Digital camera model #789 is the best-selling of all the many types of cameras produced. Information related to the 550,000 units of digital camera model #789 produced annually is shown below.
Direct materials
$450,000
Direct labor
Department A (7,000 DLH x $21 per DLH)
$147,000
Department B (25,000 DLH x $19 per DLH)
$475,000
Department C (10,000 DLH x $26 per DLH)
$260,000
Machine Hours
Department A
42,000 MH
Department B
23,000 MH
Department C
38,000 MH
Freeze Frame’s total expected overhead costs and related overhead data are shown below:
Department A
Department B
Department C
Direct labor hours
90,000 DLH
75,000 DLH
42,000 DLH
Machine hours
67,500 MH
135,000 MH
53,200 MH
Manufacturing overhead costs
$540,000
$675,000
$399,000
a. Compute a departmental overhead rate for department A based on direct labor hours.b. How much overhead is associated with model 789 from department A?
c. Compute a departmental overhead rate for department B based on direct labor hours.d. How much overhead is associated with model 789 from department B?e. Compute a departmental overhead rate for department C based on direct labor hours.f. How much overhead is associated with model 789 from department C?
g What is the per unit cost of the 550,000 units of model 789?
149. Freeze Frame, Inc. produces cameras that require three processes, A, B, and C, to complete. Digital camera model #789 is the best-selling of all the many types of cameras produced. Information related to the 550,000 units of digital camera model #789 produced annually is shown below:
Direct materials
$450,000
Direct Labor
Department A (7,000 DLH x $21 per DLH)
$147,000
Department B (25,000 DLH x $19 per DLH)
$475,000
Department C (10,000 DLH x $26 per DLH)
$260,000
Machine Hours
Department A
42,000 MH
Department B
23,000 MH
Department C
38,000 MH
Freeze Frame’s total expected overhead costs and related overhead data are shown in the following table:
Department A
Department B
Department C
Direct labor hours
90,000 DLH
75,000 DLH
42,000 DLH
Machine hours
67,500 MH
135,000 MH
53,200 MH
Manufacturing overhead costs
$540,000
$675,000
$399,000
a. Compute a departmental overhead rate for department A based on machine hours.b. How much overhead is associated with model 789 from department A?
c. Compute a departmental overhead rate for department B based on direct labor hours.d. How much overhead is associated with model 789 from department B?e. Compute a departmental overhead rate for department C based on machine hours.f. How much overhead is associated with model 789 from department C?
g What is the per unit cost of the 550,000 units of model 789?
