Please answer the following question. Please make sureto include all calculations. Thank you!131. Glassman CompanyGlassman Company produces two products: A and B. The company has three overhead functions that arerequired for both products.Below is production information for Products A and B:ProductABFunctionPrime Costs (DirectMaterials + DirectLabor)3$35$22Direct Labor Hours OverheadFunction #1Hourly Rate$107184 hrs1.5 hrs2 hrs.1 hrThe company produces 800 units of Product A and 8,000 units of Product B each period.The overhead functions have the following hourly costs:OverheadFunction #21 hr8 hrs.OverheadFunction #36 hrs1 hrRefer to Glassman Company If total overhead is assigned to A and B on the basis of overhead activity hours used, the total product cost per unitassigned to Product A will beA. $86.32.B. $95.00.C. $115.50.D. None of the responses are correct.

Assigning total overheadc to products based on overhead activity hours used means allocating the…

131. Glassman Company Glassman Company produces two products: A and B. The company has three overhead functions that are required for both products. Below is production information for Products A and B: Product A B Prime Costs (Direct Materials + Direct Labor) Function $35 $22 Direct Labor Hours Overhead Function #1 Hourly Rate $10 7 18 4 hrs. 1.5 hrs 2 hrs. 1 hr Overhead Function #2 The company produces 800 units of Product A and 8,000 units of Product B each period. The overhead functions have the following hourly costs: 1 hr 8 hrs Overhead Function #3 6 hrs 1 hr Refer to Glassman Company If total overhead is assigned to A and B on the basis of overhead activity hours used, the total product cost per unit assigned to Product A will be A. $86.32. B. $95.00. C. $115.50. D. None of the responses are correct.

131. Glassman Company Glassman Company produces two products: A and B. The company has three overhead functions that are required for both products. Below is production information for Products A and B: Product A B Prime Costs (Direct Materials + Direct Labor) Function $35 $22 Direct Labor Hours Overhead Function #1 Hourly Rate $10 7 18 4 hrs. 1.5 hrs 2 hrs. 1 hr Overhead Function #2 The company produces 800 units of Product A and 8,000 units of Product B each period. The overhead functions have the following hourly costs: 1 hr 8 hrs Overhead Function #3 6 hrs 1 hr Refer to Glassman Company If total overhead is assigned to A and B on the basis of overhead activity hours used, the total product cost per unit assigned to Product A will be A. $86.32. B. $95.00. C. $115.50. D. None of the responses are correct.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
A company manufacturing two products furnishes the following data Annual output Product Output units Machine Hours Purchase Orders Machine set-ups A 5000 20000 160 20 B 60000 120000 384 44 Total 65000 140000 544 64 The annual overheads are as under. Rs Volume related activity costs 4,50,000 Set up related costs 9,20,000 Purchase related costs 5,18,000 Total 1,888,000 You are required to calculate the overheads cost per unit of each product A and B based on Activity based costing method.
K A furniture corporation manufactures two models of furniture Standard and Deluxe. The total estimated manufacturing overhead costs are $64,350. The following estimates are available Deluxe $280 $140 550 Standard $240 $125 240 Direct materials cost per unit Direct labor cost per unit Number of units The company uses direct labor costs as the base to allocate manufacturing overhead. Calculate the predetermined overhead rate (Round your answer to two decimal places.) O A. 60.14% OB. 32.3% OC. 30.41% OD. 191 52%
A company has the following overhead costs and activities: Estimated Expected Activity Product V Product W Product X Overhead Activities and Activity Measures Machine setups (setups) Processing customer orders (orders) Assembling products (assembly-hours) $9,178.00 Cost S7,234.50 $3,565.50 69 12 10 20 21 492 697 111 4. A company sells two products, one with sales of $10,000 and variable expenses of $2,500, another with sales of $46,000 and variable expenses of $15,420. Fixed expenses are $33,100. Breakeven point for the whole company is close to: А. 833,100 В. $22,900 C. $51,020 D. $48,676 A company that reduces the proportion of variable costs in its cost structure will: A. enjoys higher stability in profits. B. increase its profits more when the economy is good. C. have a loss more easily when the economy is bad. D. be indifferent. 5. 6. is normally recorded on any financial statement but irrelevant in decision making which is not. A. Sunk cost B. Incremental cost C. Differential…
Acme Company manufactures and sells two products, Product A and Product B. Here are data regarding the expected production and direct labor hours (DLHs): Product A Product B Activity Labor-related Acme applies overhead using activity-based rates based on the following estimates: Production 600 units 400 units DLHs Machine setups Setups Machining MHs O $1,127,785 $796,812 DLH per unit 6.0 DLHS 3.0 DLHS O $663,551 O $529,680 Allocation Overhead base costs $127,500 $60,110 $940,160 Total DLHs 3,600 DLHS 1,200 DLHS Usage of allocation base Product B Product A 3,600 700 4,000 The total overhead applied to Product A is closest to: (Round overhead rates to nearest penny.) 1,200 400 3,100 Total 4,800 1,100 7,100
I. PROBLEM SOLVINGAnswer the following items on the space provided. Show your computations.At the beginning of 201A, ABC Company had the following standard costs for one (1) of its chemical products:Direct material (3 pounds at P3.20) P9.60Labor standard (0.9 hours at P9.00) 8.10Variable overhead (0.9 hours at P1.50) 1.35Fixed overhead (0.9 hours at P4.00) 3.60Total P22.65ABC computes its overhead rates using budgeted capacity, which is 144,000 units. Actual results for 201Aare:Units produced 140,000 unitsMaterials purchased 421,175 lbs. at P3.30Materials used 421,000 lbs.Direct labor 128,750 hrs at P8.90Fixed overhead P517,525Variable overhead 218,000Required: Indicate whether conditions are favorable or unfavorable. 4. Labor rate variance (LRV)5. Labor efficiency variance (LEV)6. Variable overhead (VOH) rate variance7. VOH efficiency variance8. Fixed overhead (FOH) spending variance9. FOH volume variance
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Required information Skip to question [The following information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. Direct materials (4.0 pounds @ $5.00 per pound) $ 20.00 Direct labor (1.8 hours @ $12.00 per hour) 21.60 Overhead (1.8 hours @ $18.50 per hour) 33.30 Standard cost per unit $ 74.90 The standard overhead rate ($18.50 per direct labor hour) is based on a predicted activity level of 75% of the factory’s capacity of 20,000 units per month. Following are the company’s budgeted overhead costs per month at the 75% capacity level. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 75,000 Power 15,000 Maintenance 30,000 Total variable overhead costs 135,000 Fixed overhead costs Depreciation—Building 23,000 Depreciation—Machinery 71,000 Taxes and insurance 18,000 Supervisory salaries 252,500 Total fixed overhead costs 364,500…
Help Save & Exit Gesualdo, Incorporated, manufactures and sells two products: Product Z6 and Product F4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product Z6 Product F4 Total direct labor-hours Direct Materials Cost per Unit $ 101.00 $ 217.20 Activity Cost Pools. Labor-related 300 600 Machine setups Order size Direct Labor- Total Direct Expected Hours Per Labor- Production Unit Hours 8.0 11.0 The direct labor rate is $24.70 per DLH. The direct materials cost per unit for each product is given below: Product Z6 Product F4 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Product F4 6,600 600 3,500 Activity Measures DLHs setups MHS Saved Estimated Overhead Cost $ 98,640 18,711 388,360 $ 505,711 2,400 6,600 9,000 als Handling Costs Submit
CCONI XYZ Company provided the following information regarding Product XY: Direct material costs OMR3 per unit of product; Direct labor costs OMR5 per direct labor hour; Predetermined overhead rate OMR10 per direct labor hour. The cost of a job for 550 units of product XY, which uses a total of 80 direct labor hours, is: Select one: a. OMR9,900 6.OMR2850 c. OMR2,100 d.OMRS 200 e None of the answers given Company XYZ uses direct labor hours to allocate its manufacturing overhead. The company estimates that
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