costacctg13_sm_ch05

50075 plaques 7500120150025 medallio ns 16700060

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Unformatted text preview: D/MI give Wigan a better handle on how to effect ively manage different categories of both direct and indirect costs. 5­25 5­31 (50 min.) Plantwide, department, and activity­cost rates. 1. Trophies Direct materials Forming Assembly Packaging Total Direct Labor Forming Assembly Packaging Total $2.50 0.50 0.75 $3.75 $3.00 1.50 0.75 $5.25 Plaques $1.50 1.25 0.50 $3.25 $1.20 1.50 0.25 $2.95 Trophies Direct materials ($3.75 × 5,200; $3.25 × 7,500; $0.85 × 16,700) Direct labor ($5.25 × 5,200; $2.95 × 7,500; $1.20 × 16,700) $19,500 27,300 $46,800 Medallions $0.50 0.25 0.10 $0.85 $0.60 0.50 0.10 $1.20 Plaques Medallions $24,375 22,125 $46,500 $14,195 20,040 $34,235 Total $ 58,070 69,465 $127,535 $0.77296 Budgeted = ($22, 386 + $33, 960 + $42, 234) = $98, 580 = per dollar of direct cost overhead rate $127, 535 $127, 535 Trophies (1) (2)=(1)÷5200 (3) Direct materials $19,500 $ 3.75 $24,375 Direct labor 27,300 5.25 22,125 Total direct cost 46,800 9.00 46,500 Allocated overhead* 36,175 6.96 35...
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