Midterm1 Spr2010

Actual budgeted machine hours 20000 18000 direct

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Unformatted text preview: fiscal year 2009. Actual Budgeted Machine hours 20,000 18,000 Direct labor hours 4,800 4,500 Wood Direct labor Depreciation Plant supervisor wages Screws, nails, glue Plant utilities Total cost $223,000 96,000 75,000 90,000 12,000 24,000 $520,000 17. Compute Outdoor’s predetermined overhead allocation rate. 18. During 2009, Outdoor produced a treehouse for the Iowa City Park Department. Information about this job follows. Machine hours Direct labor hours Wood Direct labor Budgeted 75 125 $3,500 $2,500 Actual 50 150 $4,000 $2,775 Assume that Outdoor’s predetermined overhead rate is $40 per machine hour. Compute the cost of the Iowa City Park Department job. 6A:002 Spring 2010 – Midterm 1 Page 10 19. Assume that Outdoor allocates overhead using a rate of 250% of direct labor cost. In fiscal year 2008, Outdoor reported the following information • Budget direct labor cost: $110,000 • Actual direct labor cost: $96,000 • Budgeted manufacturing overhead cost: $275,000 • Over-applied manufacturing overhead: $74,100 Compute Outdoor’s actual manufacturing overhead incurred in fiscal year 2008. Use the following information about PetParadise to answer questions 20 through 23. PetParadise makes padded sleep mats for dogs. It reported the following information for January. December 1 raw materials inventory........................................................$14,000 December 1 work-in-process inventory .....................................................22,000 December 1 finished goods inventory ........................................................32,000 Sales revenue and costs for the month Sales revenue ..................................................................................$175,000 Direct materials used...........................................................................47,000 Direct labor used .................................................................................30,000 Manufacturing overhead incurred .......................................................67,500 Cost of goods manufactured ...............................................................84,100 Selling and administrative expenses ...................................................12,700 Pet Paradise noted that its finished goods inventory decr...
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