ACCT 3121 CH5_001

ACCT 3121 CH5_001 - Solving Organization Design Problems...

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Unformatted text preview: Solving Organization Design Problems Using Accounting Problem Set 5 Andrew A. Christie E. J. Ourso College of Business Administration Louisiana State University Baton Rouge, LA, 70803-6304 October 13, 2009 © Copyright: 1990 to 2009 Instructions Cooperation: 1 encourage you to discuss questions and answers with your peers. Former exam questions: To provide perspective on the standards expected, homework sets include some former exam questions. These have FEQ in parenthesis after them. Problem Set 5 1 Newman Co. (FEQ). Newman Co applies overhead using a predetermined rate per direct labor hour. The following information is available for the year. r f .0 Budgeted direct labor hours 350,000 p: Actual direct labor hours 7, 320,000 ‘ \ ‘i‘fl Actual overhead 72% $842,000 (1% Z r 1b 520/ Overhead under applied $74,000 What is the predetermined overhead application rate? 32-40 ___I 2. Dukes (FEQ) The company uses a predetermined overhead application rate per direct labor hour to apply r : C0 overhead. Budgeted and actual data for the year follow. D W ‘1— rs, Budgeted Actual Overhead rate er DLH $25.00 $26.00 Production (units) /\/ 72,000 75,000 Labor hours er unit (q) ? ? r ’ Direct labor hours (DLHs) ? ? ' Overhead Tc ' $3,600,000 I $3,705,000 lé’fdiéw " , -: {Zilltiy/W“ I What is Dukes' budgeted direct labor hours? [44 0&9 I What is Dukes' standard labor hours per unit of output? 4 ms I How many direct labor hours did the company actually wv" ork? What is Dukes’ actual direct labor hours er unit of output? What is the closing balance in Dukes' overhead account? 3 Gunk Inc. (FEQ) Q Gunk applies overhead using a predetermined rate. The following information is available for the year. Budgeted volume 4/53 400,000 Actual volume fl], 1 440,000 Overhead applied ~ w m 0H 6' r/r“ $2,244,000 Overhead under applied « dot-Nu? that". $66,000 @ What is the redetermined overhead a lication rate? What is the budgeted total overhead? 3 53730?" don/w : Q , (read/5,1532), Problem Set 5 2 4 Williams Co. (FEQ) Williams Co. applies overhead using a predetermined rate. The following information is available for the period. ” 0E2 Overhead over applied at beginning of period {fife/J?" $26,000 rt ,7 / z W U a ’ a/«ffir N J ,{1 ,L 2 Budgeted volume 100,000 r“ 3, ~ WWMMWM Actual volume 120,000 19 Mt my La CF Overhead applied $576,000 Overhead under applied at end of period /~M{)!‘7’. $57,000 What is the redetermined overhead application rate? 1—— 0 I What was the actual overhead incurred for the year? I 5 Sculpture Works Sculpture Works makes garden sculptures out of wire and other materials. You are given the following data. Budgeted Unit Costs: Large Sculpture rb Uri/its qs My Materials: Wire $0.20 Feet 80.0 Icy/04> Materials: Plastic $0.25 Square Feet 40 .12 W00 Labor $27.00 DLHs 3.6 QM? Overhead $65.00 MHs 2.2 4— )43 Actual Costs: Large Sculpture Units TCa 1 Materials: Wire Feet $46,904.00 Materials: Plastic Square Feet 2,392.00 Labor DLHs 251,160.00 Overhead MHs 371,280.00 $671,736.00 Units Produced 2,600 flab : '3, Q What is the budgeted unit cost for the large sculpture? Ctr, What is the actual unit cost for the large sculpture? 0/5» Explain why there is another way to obtain the actual unit cost for the large sculpture? (33525345002; ‘ ‘ Which of the two average cost numbers would you use for F GDS? “lite: QMCMMQ Ari/037:) ...
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ACCT 3121 CH5_001 - Solving Organization Design Problems...

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