160 4800 9000 Indirect costs Consulting support 260 9000 23400 Total costs

160 4800 9000 indirect costs consulting support 260

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4-10 4-22 (15 20 min.) Time period used to compute indirect cost rates. 1. Quarter 1 2 3 4 Annual (1) Pools sold 565 490 245 100 1,400 (2) Direct manufacturing labor hours (1 Row 1) 565 490 245 100 1,400 (3) Fixed manufacturing overhead costs $12,250 $12,250 $12,250 $12,250 $49,000 (4) Budgeted fixed manufacturing overhead rate per direct manufacturing labor hour ($12,250 Row 2) $21.68 $25 $50 $122.50 $35 Budgeted Costs Based on Quarterly Manufacturing Overhead Rate 2nd Quarter 3rd Quarter Direct material costs ($14 490 pools; 245 pools) $ 6,860 $ 3,430 Direct manufacturing labor costs ($20 490 hours; 245 hours) 9,800 4,900 Variable manufacturing overhead costs ($15 490 hours; 245 hours) 7,350 3,675 Fixed manufacturing overhead costs ($25 490 hours; $50 × 245 hours) 12,250 12,250 Total manufacturing costs $36,260 $24,255 Divided by pools manufactured each quarter ÷ 490 ÷ 245 Manufacturing cost per pool $ 74.00 $ 99.00 2. Budgeted Costs Based on Annual Manufacturing Overhead Rate 2nd Quarter 3rd Quarter Direct material costs ($14 490 pools; 245 pools) $ 6,860 $ 3,430 Direct manufacturing labor costs ($20 490 hours; 245 hours) 9,800 4,900 Variable manufacturing overhead costs ($15 490 hours; 245 hours) 7,350 3,675 Fixed manufacturing overhead costs ($35 490 hours; 75 hours) 17,150 8,575 Total manufacturing costs $41,160 $20,580 Divided by pools manufactured each quarter 490 245 Manufacturing cost per pool $ 84.00 $84.00
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4-11 3. 2nd Quarter 3rd Quarter
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4-12 4-23 (10 15 min.) Accounting for manufacturing overhead. 1. Budgeted manufacturing overhead rate = $4,400,000 200,000 labor-hours = $22 per direct labor-hour 2. Work-in-Process Control 4,664,000 Manufacturing Overhead Allocated 4,664,000 (212,000 direct labor-hours $22 per direct labor-hour = $4,664,000) 3. $4,650,000 $4,664,000 = $74,000 overallocated, an insignificant amount of difference compared to manufacturing overhead costs allocated $14,000 ÷ $4,664,000 = 0.3%. If the
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