Gomez's Fabrics has budgeted overhead costs of $1,000,000. It has allocated overhead on a plantwide basis...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Gomez's Fabrics has budgeted overhead costs of $1,000,000. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 100,000 for the current year. The company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting (cost driver is machine hours) and design (cost driver is number of setups). Overhead allocated to the cutting cost pool is $406,000 and $594,000 is allocated to the design cost pool. Additional information related to these pools is as follows. Cost Pools Wool Cotton Total 116,000 Machine Hours 58,000 58,000 Number of Setup 2,500 1,500 4,000 What amount of overhead would be allocated to the wool and cotton product lines using the traditional approach, assuming 60,000 of the direct labor hours were incurred for the wool and 40,000 of the direct labor hours were incurred for the cotton? • Round overhead rate to 2 decimal places, e.g. 12.25. • Then, round final number (overhead costs) to the nearest dollar. If your calculation is $10.01, enter 10. . When typing your responses, do NOT include a dollar sign. For example, if your answer is $10,000, you should be typing 10,000 or 10,000.00 without any dollar sign. • Round overhead rate to 2 decimal places, e.g. 12.25. • Then, round final number (overhead costs) to the nearest dollar. If your calculation is $10.01, enter 10. • When typing your responses, do NOT include a dollar sign. For example, if your answer is $10,000, you should be typing 10,000 or 10,000.00 without any dollar sign. Responses Traditional Costing Wool Product Cotton Product Overhead Allocated $ $ What amount of overhead would be allocated to the wool and cotton product lines using the activity-based costing? • Round overhead rate to 2 decimal places, e.g. 12.25. . Then, round final number (overhead costs) to the nearest dollar. If your calculation is $10.01, enter 10. . When typing your responses, do NOT include a dollar sign. For example, if your answer is $10,000, you should be typing 10,000 or 10,000.00 without any dollar sign. Responses ABC Wool Product Cotton Product Overhead Allocated $ $ Gomez's Fabrics has budgeted overhead costs of $1,000,000. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 100,000 for the current year. The company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting (cost driver is machine hours) and design (cost driver is number of setups). Overhead allocated to the cutting cost pool is $406,000 and $594,000 is allocated to the design cost pool. Additional information related to these pools is as follows. Cost Pools Wool Cotton Total 116,000 Machine Hours 58,000 58,000 Number of Setup 2,500 1,500 4,000 What amount of overhead would be allocated to the wool and cotton product lines using the traditional approach, assuming 60,000 of the direct labor hours were incurred for the wool and 40,000 of the direct labor hours were incurred for the cotton? • Round overhead rate to 2 decimal places, e.g. 12.25. • Then, round final number (overhead costs) to the nearest dollar. If your calculation is $10.01, enter 10. . When typing your responses, do NOT include a dollar sign. For example, if your answer is $10,000, you should be typing 10,000 or 10,000.00 without any dollar sign. • Round overhead rate to 2 decimal places, e.g. 12.25. • Then, round final number (overhead costs) to the nearest dollar. If your calculation is $10.01, enter 10. • When typing your responses, do NOT include a dollar sign. For example, if your answer is $10,000, you should be typing 10,000 or 10,000.00 without any dollar sign. Responses Traditional Costing Wool Product Cotton Product Overhead Allocated $ $ What amount of overhead would be allocated to the wool and cotton product lines using the activity-based costing? • Round overhead rate to 2 decimal places, e.g. 12.25. . Then, round final number (overhead costs) to the nearest dollar. If your calculation is $10.01, enter 10. . When typing your responses, do NOT include a dollar sign. For example, if your answer is $10,000, you should be typing 10,000 or 10,000.00 without any dollar sign. Responses ABC Wool Product Cotton Product Overhead Allocated $ $
Expert Answer:
Answer rating: 100% (QA)
Traditional Costing Budgeted Overhead 1000000 Direct Labor Hours 100000 Overhead rate ... View the full answer
Related Book For
Accounting Tools for business decision making
ISBN: 978-0470095461
4th Edition
Authors: kimmel, weygandt, kieso
Posted Date:
Students also viewed these accounting questions
-
International Fabrics has budgeted overhead costs of $900,000. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be...
-
The estimated amount of depreciation on equipment for the current year is $11,500. Journalize the adjusting entry to record the depreciation.
-
The estimated amount of depreciation on equipment for the current year is $2,900. Journalize the adjusting entry to record the depreciation.
-
[S] Explain how each of the following cost items could be classified under more than one of the headings given in question A2.3: (a) raw materials to be used in production; (b) subcontracted labour...
-
What is the most common form for the financial statements of public colleges and universities?
-
Solve each system in Exercises 2526. x + 2 y +4 3 642 x + 1 y 1 + 2 x-5 y + 1 4 3 + + NIN NIT 4 Z || || 2 2/26 || 19 4
-
The going concern assumption is a fundamental principle in the preparation of the financial statements. Discuss why it is of importance to both senior management and the auditor.
-
KraftyCity is a large retailer that sells power tools and other hardware supplies. One of its products is the Krafty Man workbench. Information on the workbench is as follows: Annual demand = 1,200...
-
You plan to deposit $2,000 per year for 5 years into a money market account with an annual return of 2%. You plan to make your first deposit one year from today. a. What amount will be in your...
-
The vice-president of sales and marketing, Madison Tremblay, is trying to plan for the coming year in terms of production needs to meet the forecasted sales. The board of directors is very supportive...
-
What happens to the monopolist if the per unit tax is imposed? a) Average cost and marginal curves to shift up because the per unit tax is like a variable cost. b) Average cost curve to shift up c)...
-
please send the names of the websites so that we can find information about carpet moss marketing and data about the carpet moss market and the industries working for that. please share the like for...
-
For automobiles and other listed property not used more than 5 0 % for business in the year of acquisition, the straight - line method under the alternative depreciation system ( ADS ) must be used.
-
Concord, Incorporated had net income for 2025 of $5410000. Additional information is as follows:\ \ Amortization of patents $44800\ Depreciation on plant assets 1650000\ Long-term debt: \ Bond...
-
Some accounting firms give the client an option to pay a fee when the tax return is completed that guarantees tax advices and support from the accountant if the client were audited. A large...
-
Roman Company was established a few years ago. The company operates all over the beautiful Pacific Northwest. Roman Company has just completed its current accounting period for the year. Roman...
-
Hatheway Company has the following expected pattern of collections on credit sales: 70 percent collected in the month of sale, 15 percent in the month after the month of sale, and 14 percent in the...
-
The following information is available for Partin Company: Sales $598,000 Sales Returns and Allowances 20,000 Cost of Goods Sold 398,000 Selling Expense 69,000 Administrative Expense 25,000 Interest...
-
The following selected information was taken from the financial statements of Krispy Kreme Doughnuts, Inc. The Company leases equipment and facilities under both capital and operating leases. The...
-
Give examples of accrual-based and cashbased ratios to measure each of these characteristics of a company: (a) Liquidity. (b) Solvency.
-
At the high and low levels of activity during the month, direct labor hours are 90,000 and 40,000, respectively. The related costs are $160,000 and $100,000. What are the fixed and variable costs at...
-
The propeller of a ship is a tapered circular cylinder, as shown in Figure P2.24. When installed in the ship, one end of the propeller is constrained from longitudinal motion relative to the ship...
-
(a) Determine the equivalent torsional stiffness of the propeller shaft of Problem 2.24. (b) Determine an equivalent moment of inertia of the shaft of Problem 2.24 to be placed on the end of the...
-
A block of mass \(m\) is connected to two identical springs in series. Each spring has a mass \(\mathrm{m}\) and a stiffness \(\mathrm{k}\). Determine the equivalent mass of the two springs at the...
Study smarter with the SolutionInn App