BProblemsChapter 19-1

# BProblemsChapter 19-1 - Problem 19-1 Veronica Company a...

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Problem 19-1: Veronica Company a. Overhead rate = hours labor direct Estimated overhead Estimated = hours 20,000 \$180,000 = \$9 per direct labor hour b. Jobs G H Direct material ................................................................................................................................................................ \$10,000 \$10,000 Direct labor ..................................................................................................................................................................... 28,000 32,000 Overhead ......................................................................................................................................................................... 21,600 * 25,200+ Total production costs ..................................................................................................................................................... \$59,600 \$67,200 *2,400 hours @ \$9 = \$21,600 +2,800 hours @ \$9 = \$25,200 c. Job G Job H Production cost ................................................................................................................................................................ \$ 59,600 \$ 67,200 Selling price (180%) ....................................................................................................................................................... \$107,280 \$120,960 Problem 19-2: Vermont Sugar Enterprises a. Selling price of sugar—1,000 @ \$2.00 ........................................................................................................................... \$2,000.00 Traceable costs (after split-off) ....................................................................................................................................... 280.00 Gross margin ................................................................................................................................................................... \$1,720.00 Total syrup cost: Process costs (\$12,280 + \$100,000) ............................................................................................................................ \$112,280 Less sugar gross margin .............................................................................................................................................. 1,720 Cost allocated to syrup ................................................................................................................................................

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