Question :
173.Freeze Frame, Inc. produces cameras that require three processes, A, : 1258540
173.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 × $21 per DLH)$147,000
Department B (25,000 DLH × $19 per DLH)$475,000
Department C (10,000 DLH × $26 per DLH)$260,000
Machine Hours
Department A42,000 MH
Department B23,000 MH
Department C38,000 MH
Freeze Frame’s total expected overhead costs and related overhead data are shown in the following table:
Department ADepartment BDepartment C
Direct labor hours90,000 DLH75,000 DLH42,000 DLH
Machine hours67,500 MH135,000 MH53,200 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?
174.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 × $23 per DLH)$115,000
Department B (4,000 DLH × $25 per DLH)$100,000
Machine hours
Department A2,000 MH
Department B3,000 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 ADepartment B
Direct labor hours9,000 DLH7,000 DLH
Machine hours6,500 MH13,000 MH
Manufacturing overhead costs $54,600$67,060
Determine the total amount of overhead assigned to each unit of pvc fencing.
175.A company’s total expected overhead costs and related overhead data are shown below.
Department ADepartment B
Direct labor hours75,000 DLH30,000 DLH
Machine hours3,000 MH6,000 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. 176.A company’s total expected overhead costs and related overhead data are shown in the following table:
Department ADepartment B
Direct labor hours85,000 DLH72,000 DLH
Machine hours79,050 MH37,395 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.
