201-SELF STUDY PROB-WEEK 4-S'12

201-SELF STUDY PROB-WEEK 4-S'12 -...

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9%:"; <%98 .=>?@AB 9%:" .@CDE%FGHA IA=JKJ HALC=EBADE PROBLEM 3-60 (50 MINUTES) 1. Schedule of budgeted overhead costs: Department A Department B Variable overhead A 20,000 ! $16 . ...................................................... $320,000 B 20,000 ! $ 4 . ....................................................... $ 80,000 Fixed overhead . ............................................................ 200,000 200,000 Total overhead . ............................................................. $520,000 $280,000 Grand total of budgeted overhead (A + B): $800,000 hour per $20 40,000 $800,000 hours labor - direct budgeted total rate overhead budgeted total rate overhead ned Predetermi = = = 2. Product prices: Basic System Advanced System Total cost . ..................................................................... $1,100 $1,500 Markup, 10% of cost . ................................................... 110 150 Price . ............................................................................. $1,210 $1,650 3. Departmental overhead rates: Department A Department B Budgeted overhead (from requirement 1) . ............................................... $520,000 $280,000 Budgeted direct-labor hours . ..................................... 20,000 20,000 Predetermined overhead rates . .................................. $520,000 $280,000 20,000 20,000 $26 per $14 per direct-labor direct-labor hour hour PROBLEM 3-60 (CONTINUED) 4. New product costs: Basic
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201-SELF STUDY PROB-WEEK 4-S'12 -...

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