Ask Experts Questions for FREE Help !
Ask
    fustrated's Avatar
    fustrated Posts: 18, Reputation: 2
    New Member
     
    #1

    Mar 25, 2007, 06:52 PM
    Predetermined rate
    I have been trying to work this problem out & I'm drawing a blank. Can someone check out what I have started and show me where to go from here. PLEASE

    PROBLEM IS:
    Prine Co. manufactures bentwood chairs and tables. Wood for both products is steam-bent in the same process, but different types of wood are used for each product. Thus, materials cost is identified separately to each product. One production cycle uses 20 board feet. Labor cost is identified to the process as a whole, as is overhead cost. Data for the month of July follow:
    ... Chairs... Tables
    Direct material cost per board foot
    ... $3.60... $4.20
    Number of parts formed per production cycle (20 board feet) 10... 8
    Actual operating hours in July... 120... 380
    Parts produced during July... 4,000... 9,000
    Budgeted annual conversion cost:
    Labor... $150,000
    Utilities... 125,000
    Depreciation... 65,000
    Other overhead... 50,000
    Total... $390,000

    Budgeted annual operating hours for steam-bending... 5,200
    (a) Compute July's predetermined rate for the steam-bending process.
    240,000/150,000
    (b) Compute July's direct material costs for chairs and tables. 3.60/4000 4.20/4000
    (c) Compute conversion costs to be applied to chairs and tables in July.
    (d) Journalize the following entries:
    (1) Assignment of direct materials to chairs and tables.
    (2) Application of conversion costs to chairs and tables.
    (3) The transfer of completed chairs and tables to the Finishing Department. All of July's production was completed in July.

Check out some similar questions!

Predetermined overhead rate [ 3 Answers ]

Showers Company estimates the following overhead costs for the coming year: Equipment depreciation $150,000 Equipment maintenance 50,000 Supervisory salaries 20,000 Factory rent 200,000 Total $420,000 Showers is also budgeting $600,000 in direct labor costs and 14,000 machine hours for the...

Rate of Return [ 2 Answers ]

:) A 2 year maturity bond with face value of $1,000 that makes annual coupon payments of $80 and is selling at face value. What will be the rate of return on the bond if its yield to marurity at the end of the year is a. 6% b. 8% c. 10% :)

Predetermined overhead and Inventory [ 2 Answers ]

What effect does an increase in predetermined overhead rate have on on iventory value?

Transfer Rate [ 1 Answers ]

My transfer rates drop radicly while down loading. I am running Win XP home. I have dial up and my rate is about 4200bps. My rates start any where from 12 to 15kb And drop quickly to an average o 1.75bps. What causes this and how do I fix it?


View more questions Search
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.