After reading the chapter, reviewing the PowerPoint slides, and answering the Study Guide questions, students should...
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After reading the chapter, reviewing the PowerPoint slides, and answering the Study Guide questions, students should be ready to practice the content covered. The purpose of this assignment is to allow students to practice the concepts prior to completing the homework assignment. Problems are adapted from Financial & Managerial Accounting, Warren/Reeve/Duchac, 14th edition. Problem 1 - Single plantwide factory overhead rate The total factory overhead for Bardot Marine Company is budgeted for the year at $816,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboat and bass boat each require 4 direct labor hours for manufacture. Each product is budgeted for 8,000 units of production for the year. Determine (A) the total number of budgeted direct labor hours for the year, (B) the single plantwide factory overhead rate, and (C) the factory overhead allocated per unit for each product using the single plantwide factory overhead rate. When required, round all per unit answers to the nearest cent. Show how you computed your answers. Problem 2 - Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $471,750 divided into two departments: Fabrication, $330,000, and Assembly, $141,750. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require 2 direct labor hours in Fabrication and 4 direct labor hours in Assembly. The bass boats require 2 direct labor hours in Fabrication and 3 direct labor hours in Assembly. Each product is budgeted for 3,000 units of production for the year. Determine (A) the total number of budgeted direct labor hours for the year in each department, (B) the departmental factory overhead rates for both departments, and (C) the factory overhead allocated per unit for each product using the department factory overhead allocation rates. When required, round all per unit answers to the nearest cent. Show how you computed your answers. Problem 3-Activity-based costing: factory overhead costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,369,800, divided into four activities: fabrication, $704,000; assembly, $261,000; setup, $220,800; and inspection, $184,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows: Product Fabrication Assembly Setup Inspection 8,000 dlh 21,750 dlh 58 setups 100 inspections Speedboat 24,000 dlh 7,250 dlh 422 setups 700 inspections Bass boat Total 32,000 dlh 29,000 dlh 480 setups 800 inspections Each product is budgeted for 5,500 units of production for the year. Determine (A) the activity rates for each activity and (B) the activity-based factory overhead per unit for each product. Round to the nearest $. After reading the chapter, reviewing the PowerPoint slides, and answering the Study Guide questions, students should be ready to practice the content covered. The purpose of this assignment is to allow students to practice the concepts prior to completing the homework assignment. Problems are adapted from Financial & Managerial Accounting, Warren/Reeve/Duchac, 14th edition. Problem 1 - Single plantwide factory overhead rate The total factory overhead for Bardot Marine Company is budgeted for the year at $816,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboat and bass boat each require 4 direct labor hours for manufacture. Each product is budgeted for 8,000 units of production for the year. Determine (A) the total number of budgeted direct labor hours for the year, (B) the single plantwide factory overhead rate, and (C) the factory overhead allocated per unit for each product using the single plantwide factory overhead rate. When required, round all per unit answers to the nearest cent. Show how you computed your answers. Problem 2 - Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $471,750 divided into two departments: Fabrication, $330,000, and Assembly, $141,750. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require 2 direct labor hours in Fabrication and 4 direct labor hours in Assembly. The bass boats require 2 direct labor hours in Fabrication and 3 direct labor hours in Assembly. Each product is budgeted for 3,000 units of production for the year. Determine (A) the total number of budgeted direct labor hours for the year in each department, (B) the departmental factory overhead rates for both departments, and (C) the factory overhead allocated per unit for each product using the department factory overhead allocation rates. When required, round all per unit answers to the nearest cent. Show how you computed your answers. Problem 3-Activity-based costing: factory overhead costs The total factory overhead for Bardot Marine Company is budgeted for the year at $1,369,800, divided into four activities: fabrication, $704,000; assembly, $261,000; setup, $220,800; and inspection, $184,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows: Product Fabrication Assembly Setup Inspection 8,000 dlh 21,750 dlh 58 setups 100 inspections Speedboat 24,000 dlh 7,250 dlh 422 setups 700 inspections Bass boat Total 32,000 dlh 29,000 dlh 480 setups 800 inspections Each product is budgeted for 5,500 units of production for the year. Determine (A) the activity rates for each activity and (B) the activity-based factory overhead per unit for each product. Round to the nearest $.
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Related Book For
Concepts In Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
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