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.

 

 

 

 

 

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