[babyboymvsu]

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?

[babyboymvsu]

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?

[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

[babyboymvsu]

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

[morgaine300]

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