Points Received:30 of 30Comments:The budgeted overhead rate is $7,500,000 / 150,000 = $50. B. For this job, the total costs would be 400,000 + 300,000 + (50 x 15,000) = 750,000 = $1,450,000.
Question 5.Question :(TCO 3) Adnan Company uses process costing. At the beginning of the month, there were 8,000 units in process, 90% complete with respect to material and 80% complete with respect to conversion costs. 40,000 units were started during the month and 40,000 units were completed. The units in ending Work-In-Process Inventory were 70% complete with respect to material and 10% complete with respect to conversion costs. How many equivalent units will be used in calculating the cost per unit for materials?
Question 6.Question :(TCO 6) Handy Display Company manufactures display cases to be sold to retail stores. The cases come in three sizes: large, medium, and small. Currently, Handy Display Company uses a single plant-wide overhead rate to allocate its $3,357,800of annual manufacturing overhead. Of this amount, $900,000 is associated with theLarge Case line, $1,404,480 is associated with the Medium Case line, and $1,350,000 is associated with the Small Case line. Handy Display Company is currently running a total of 39,600 machine hours: 12,000 in the Large Case line, 15,960 in the Medium Case line, and 12,000 in the Small Case line. Handy DisplayCompany uses machine hours as the cost driver for manufacturing overhead costs. Requirement: Calculate the departmental overhead rate for each of the three departments listed.
Points Received:30 of 30Comments:Large Cases - $900,000/12,000 = $75.00 per machine hour Medium Cases -