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Stanfil Corporation developed a cost function for manufacturing overhead costs of Y = $8,000 + $1.60X. Estimated manufacturing overhead costs at 10,000 units of production are a. $16,000. b. $17,600....

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Stanfil Corporation developed a cost function for manufacturing overhead costs of Y = $8,000 + $1.60X. Estimated manufacturing overhead costs at 10,000 units of production are a. $16,000. b. $17,600. c. $24,000. d. $26,000.
2. The following information pertains to Whitestone Industries for 2014:
Estimated total overhead costs for 2014 Estimated direct labor costs for 2014 Actual direct labor costs Actual overhead costs Activity base
What is the predetermined overhead rate for Whitestone Industries for 2014? a. 66.7% b. 150% c. 160% d. 62.5%
Figure 4-20
$37,500 25,000 22,500 36,000 Direct labor costs
Quasi-Tech Corporation produces specially machined parts. The parts are produced in batches in one continuous manufacturing process. Each part is custom produced and requires special engineering design activity (based on customer specifications). Once the design is completed, the equipment can be set up for batch production. Once the batch is completed, a sample is taken and inspected to see if the parts are within the tolerances allowed. Thus, the manufacturing process has four activities: engineering, setups, machining, and inspecting. Costs have been assigned to each activity using direct tracing and resource drivers:
Activity Expected Cost Activity Driver Activity Capacity Engineering $1,000,000 engineering hours 5,000 hours Setups $ 900,000 setups 200 setups Machining $2,000,000 machine hours 25,000 machine hours Inspection $ 800,000 inspection hours 2,500 inspection hours
Owens produces two models: Model X and Model Y. The following table shows how the two products consume activity.
Model C Model D Units completed 300,000 200,000 Engineering hours 1,000 4,000 Setups XXXXXXXXXXMachine hours 20,000 5,000 Inspection hours 1,500 1,000
Answered Same Day Dec 29, 2021

Solution

Robert answered on Dec 29 2021
113 Votes
Solution 1:
Y = 8000 + 1.60 (10000)
= 8000 + 16000
= 24000
Option C is co
ect.
Solution 2:
Predetermined overhead rate = Estimated total overhead costs/Estimated direct labor costs
= $37,500/25,000
= 1.5 or 150%
Option B is co
ect.
Solution 3:
Engineering cost = $1,000,000/5,000 x 4,000 = $800,000
Setups = $900,000/200 x 120 = $540,000
Machine hours = $2,000,000/25,000 x 5000 = $400,000
Inspection hours = $800,000/2,500 x 1,000 = $320,000
Total overhead cost = $800,000 + $540,000 + $400,000 + $320,000 = $2,060,000
Option B is co
ect.
Solution 4:
Predetermined overhead rate = Overhead costs/Machine hours
= $240,000/10,000
= $2.40
Amount credited = $2.40 x 11,000 = $264,000
Option D is co
ect.
Solution 5:
Debit to finished goods inventory = $6,000 + $8,000 + $30($8,000/$20) = $26,000
Option D is co
ect.
Solution 6:
Option C is co
ect.
Work in process – Assembly ----- 29,000
Raw materials ---------------------- 10,000
Payroll ------------------------------ 14,000
Overhead control ------------------ 5,000
Solution 7:
Beginning WIP (10,000 * 1) = 10,000
Started and completed (85,000 * 1) = 85,000
Ending WIP (15,000 * 1) = 15,000
Equivalent units of production = 110,000 
Solution 8:
Units completed 42,000
Ending work in process 4,000
Spoilage 4,000
Conversion Costs to account for: 50,000
Beginning work in process $36,000
Incu
ed during period 108,000
Total costs to account for $144,000
Cost per equivalent unit ($144,000/50,000) = $2.88
Solution 9:
Option C is co
ect.
Fixed overhead not allocated to copy centers ($72,000 - $60,000) =...
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