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-   -   Managerial Accounting (https://www.askmehelpdesk.com/showthread.php?t=414351)

  • Nov 9, 2009, 02:14 PM
    babyboymvsu
    Managerial Accounting
    Beginning Ending

    Raw material... $142,000 $162,000
    Work in process... 160,000 60,000
    Finished goods... 180,000 220,000
    Other data:
    Direct material used... $652,000
    Total manufacturing costs charged to production during the year
    (includes direct material, direct labor, and manufacturing overhead
    Applied at a rate of 60% of direct-labor cost)... 1,372,000
    Cost of goods available for sale... 1,652,000
    Selling and administrative expenses... 63,000

    Required:
    1. What was the cost of raw materials purchased during the year

    2. What was the direct-labor cost charged to production during the year?

    3. What was the cost of goods manufactured during the year?

    4. What was the cost of goods sold during the year?
  • Nov 9, 2009, 02:18 PM
    babyboymvsu
    Managerial Accounting
    The controller for Tender Bird Poultry, Inc. estimates that the company’s fixed overhead is $150,000 per year. She also has determined that the variable overhead is approximately $.15 per chicken raised and sold. Since the firm has a single product, overhead is applied on the basis of output units, chickens raised and sold.
    Required:
    1. Calculate the predetermined overhead rate under each of the following output predictions: 100,000 chickens, 200,000 chickens, and 300,000 chickens.
    2. Does the predetermined overhead rate change in proportion to the change in predicted production? Why?
  • Nov 9, 2009, 02:18 PM
    Curlyben
    Thank you for taking the time to copy your homework to AMHD.
    Please refer to this announcement: https://www.askmehelpdesk.com/financ...-b-u-font.html
  • Nov 9, 2009, 02:25 PM
    babyboymvsu
    Managerial Accounting
    The controller for Tender Bird Poultry, Inc. estimates that the company’s fixed overhead is $150,000 per year. She also has determined that the variable overhead is approximately $.15 per chicken raised and sold. Since the firm has a single product, overhead is applied on the basis of output units, chickens raised and sold.
    Required:
    1. Calculate the predetermined overhead rate under each of the following output predictions: 100,000 chickens, 200,000 chickens, and 300,000 chickens.
    2. Does the predetermined overhead rate change in proportion to the change in predicted production? Why?
    Predetermined overhead rate = Budgeted manufacturing-overhead cost/
    Budgeted amount of cost driver (or activity base)

    150,000/100,000 = 1.5
    150,000/200,000 = .75
    150,000/300,000 = .50
  • Nov 12, 2009, 05:15 AM
    morgaine300

    That's a start but you still need to add the .15 per chicken, given that all those answers are per chicken.

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