Chapter 3 Solutions (and 17-25)

Chapter 3 Solutions (and 17-25) - 3-28, 3-46, 3-54,...

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Unformatted text preview: 3-28, 3-46, 3-54, 17-25EXERCISE 3-28 1.volumeproductionbudgetedoverheadbudgetedrateoverheadnedPredetermi=(a)At 100,000 chicken volume:chickenper$1.65100,000,000)($.15)(100$150,000rateOverhead=+=(b)At 200,000 chicken volume:chickenper$.90200,000,000)($.15)(200$150,000rateOverhead=+=(c)At 300,000 chicken volume:chickenper$.65300,000,000)($.15)(300$150,000rateOverhead=+=2.The predetermined overhead rate does not change in proportion to the change in production volume. As production volume increases, the $150,000 of fixed overhead is allocated across a larger activity base. When volume rises by 100%, from 100,000 to 200,000 chickens, the decline in the overhead rate is 45.45% [($1.65 $.90)/$1.65]. When volume rises by 50%, from 200,000 to 300,000 chickens, the decline in the overhead rate is 27.78% [($.90 $.65)/$.90].PROBLEM 3-46 1.Predetermined overhead rate = budgeted overhead budgeted machine hours= $1,680,000 32,000 = $52.50 per machine hour2.(a)Work-in-Process Inventory...................................................... 160,000*Raw-Material Inventory.................................... 160,000Work-in-Process Inventory...................................................... 261,600**Wages Payable............................................................261,600* $42,000 + $88,000 + $30,000 = $160,000** $70,000 + $44,000 + $130,000 + $17,600 = $261,600(b)Manufacturing Overhead.......................................................... Manufacturing Overhead....
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Chapter 3 Solutions (and 17-25) - 3-28, 3-46, 3-54,...

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