Hyde Restorations rebuilds factory facilities. It employs 130 full-time workers at $25 per hour. Despite operating...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Hyde Restorations rebuilds factory facilities. It employs 130 full-time workers at $25 per hour. Despite operating at capacity, last year's performance was a great disappointment to the managers. In total, nine jobs were accepted and completed, Incurring the following total costs: Direct materials Direct labor Manufacturing overhead $ 1,215,200 4,525,000 1,158,400 Of the $1,158,400 manufacturing overhead, 25 percent was variable overhead and 75 percent was fixed. This year, Hyde expects to operate at the same activity level as last year, and overhead costs and the wage rate are not expected to change. For the first quarter of this year, Hyde Restorations completed two jobs and was beginning the third (Job 13). The costs Incurred follow: Job 11 Job 12 Job 13 Total manufacturing overhead Direct Materials Direct Labor $ 178,860 121,400 122,700 $ 615,000 393,000 249,500 325,940 157,300 Total marketing and administrative costs You are a consultant associated with Conway & Company, which has been hired by Hyde to analyze the profitability issue. The managing partner on the engagement has reviewed the accounts at Hyde and suggests you start by classifying the overhead into fixed and variable components for each of the jobs. With the help of the Hyde supervisors on each of the jobs, you arrive at the following split. Actual Manufacturing Fixed Overhead Variable $ 36,380 $ 125,300 Job 11 Job 12 Job 13 33,500 6,020 $ 75,900 106,340 20,900 $ 252,540 In the first quarter of this year, 30 percent of marketing and administrative cost was variable and 70 percent was fixed. You are told that Jobs 11 and 12 were sold for $1,100,000 and $700,000, respectively. All over- or underapplied overhead for the quarter is written off to Cost of Goods Sold. Required: a. Present In T-accounts the actual manufacturing cost flows for the three jobs in the first quarter of this year. b. Using last year's overhead costs and direct labor-hours as this year's estimate, calculate predetermined overhead rates per direct labor-hour for variable and fixed overhead. c. Present In T-accounts the normal manufacturing cost flows for the three jobs in the first quarter of this year. Use the overhead rates derived in requirement (b). d. Calculate operating profit (loss) for the first quarter of this year under actual and normal costing systems. 8 Required A Required B Required C Required D Present in T-accounts the actual manufacturing cost flows for the three jobs in the first quarter of this year. 3 points Skipped Debit Beginning balance eBook Print Ending balance Ending balance Materials Inventory Credit Variable Manufacturing Overhead Debit Credit Wages Payable Debit Credit Beginning balance Ending balance Ending balance Fixed Manufacturing Overhead Debit Credit Work-in-Process Inventory Finished Goods Inventory Debit Credit Debit Credit Beginning balance Beginning balance Ending balance Cost of Goods Sold Debit Credit Beginning balance Finished Goods Ending balance Ending balance Cost of Goods Sold Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Using last year's overhead costs and direct labor-hours as this year's estimate, calculate predetermined overhead rates per direct labor-hour for variable and fixed overhead. Note: Round your answers to 2 decimal places. Use the rounded values in the subsequent requirements. Variable overhead rate Fixed overhead rate Predetermined Overhead Rate (per Direct Labor- Hour) < Required A Required C > Present in T-accounts the normal manufacturing cost flows for the three jobs in the first quarter of this year. Use the overhead rates derived in requirement (b). Note: Round your final answers to nearest whole dollar amounts. Debit Beginning balance Ending balance Ending balance Materials Inventory Credit Variable Manufacturing Overhead Debit Credit Wages Payable Debit Credit Beginning balance Ending balance Ending balance Fixed Manufacturing Overhead Debit Credit Work-in-Process Inventory Finished Goods Inventory Debit Credit Debit Credit Beginning balance Beginning balance Ending balance Ending balance Cost of Goods Sold Cost of Goods Sold Under-or Overapplied Overhead Debit Credit Debit Credit Beginning balance Beginning balance Finished Goods Ending balance Ending balance < Required B Required D > Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Calculate operating profit (loss) for the first quarter of this year under actual and normal costing systems. Note:Loss amounts should be indicated with a minus sign. Operating profit (loss) Actual Normal < Required C Required D Hyde Restorations rebuilds factory facilities. It employs 130 full-time workers at $25 per hour. Despite operating at capacity, last year's performance was a great disappointment to the managers. In total, nine jobs were accepted and completed, Incurring the following total costs: Direct materials Direct labor Manufacturing overhead $ 1,215,200 4,525,000 1,158,400 Of the $1,158,400 manufacturing overhead, 25 percent was variable overhead and 75 percent was fixed. This year, Hyde expects to operate at the same activity level as last year, and overhead costs and the wage rate are not expected to change. For the first quarter of this year, Hyde Restorations completed two jobs and was beginning the third (Job 13). The costs Incurred follow: Job 11 Job 12 Job 13 Total manufacturing overhead Direct Materials Direct Labor $ 178,860 121,400 122,700 $ 615,000 393,000 249,500 325,940 157,300 Total marketing and administrative costs You are a consultant associated with Conway & Company, which has been hired by Hyde to analyze the profitability issue. The managing partner on the engagement has reviewed the accounts at Hyde and suggests you start by classifying the overhead into fixed and variable components for each of the jobs. With the help of the Hyde supervisors on each of the jobs, you arrive at the following split. Actual Manufacturing Fixed Overhead Variable $ 36,380 $ 125,300 Job 11 Job 12 Job 13 33,500 6,020 $ 75,900 106,340 20,900 $ 252,540 In the first quarter of this year, 30 percent of marketing and administrative cost was variable and 70 percent was fixed. You are told that Jobs 11 and 12 were sold for $1,100,000 and $700,000, respectively. All over- or underapplied overhead for the quarter is written off to Cost of Goods Sold. Required: a. Present In T-accounts the actual manufacturing cost flows for the three jobs in the first quarter of this year. b. Using last year's overhead costs and direct labor-hours as this year's estimate, calculate predetermined overhead rates per direct labor-hour for variable and fixed overhead. c. Present In T-accounts the normal manufacturing cost flows for the three jobs in the first quarter of this year. Use the overhead rates derived in requirement (b). d. Calculate operating profit (loss) for the first quarter of this year under actual and normal costing systems. 8 Required A Required B Required C Required D Present in T-accounts the actual manufacturing cost flows for the three jobs in the first quarter of this year. 3 points Skipped Debit Beginning balance eBook Print Ending balance Ending balance Materials Inventory Credit Variable Manufacturing Overhead Debit Credit Wages Payable Debit Credit Beginning balance Ending balance Ending balance Fixed Manufacturing Overhead Debit Credit Work-in-Process Inventory Finished Goods Inventory Debit Credit Debit Credit Beginning balance Beginning balance Ending balance Cost of Goods Sold Debit Credit Beginning balance Finished Goods Ending balance Ending balance Cost of Goods Sold Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Using last year's overhead costs and direct labor-hours as this year's estimate, calculate predetermined overhead rates per direct labor-hour for variable and fixed overhead. Note: Round your answers to 2 decimal places. Use the rounded values in the subsequent requirements. Variable overhead rate Fixed overhead rate Predetermined Overhead Rate (per Direct Labor- Hour) < Required A Required C > Present in T-accounts the normal manufacturing cost flows for the three jobs in the first quarter of this year. Use the overhead rates derived in requirement (b). Note: Round your final answers to nearest whole dollar amounts. Debit Beginning balance Ending balance Ending balance Materials Inventory Credit Variable Manufacturing Overhead Debit Credit Wages Payable Debit Credit Beginning balance Ending balance Ending balance Fixed Manufacturing Overhead Debit Credit Work-in-Process Inventory Finished Goods Inventory Debit Credit Debit Credit Beginning balance Beginning balance Ending balance Ending balance Cost of Goods Sold Cost of Goods Sold Under-or Overapplied Overhead Debit Credit Debit Credit Beginning balance Beginning balance Finished Goods Ending balance Ending balance < Required B Required D > Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Calculate operating profit (loss) for the first quarter of this year under actual and normal costing systems. Note:Loss amounts should be indicated with a minus sign. Operating profit (loss) Actual Normal < Required C Required D
Expert Answer:
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date:
Students also viewed these accounting questions
-
Simplify the square roots. a) 81 619 b) c) 49 100 Use the order of operation and simplify the expression. a) 21-18-2 b) 9+16-2 c) 48-13.3+ [(50-7.5)+2] d) 8016.2+(62- |-21)
-
Brighton Services repairs locomotive engines. It employs 100 full-time workers at $20 per hour. Despite operating at capacity, last year's performance was a great disappointment to the managers. In...
-
A company sells four types of gift packages. The cost per unit and demand for each package type is shown in the table below. A fixed cost of $1,000 is also incurred for each different type of gift...
-
Suppose your handheld calculator will show six places beyond the decimal point. How fast (in meters per second) would an object have to be traveling so that the decimal places in the value of can...
-
How does a partners share of partnership liabilities affect their outside basis?
-
Panther Racing, LLC, is involved in competitive racing, including the development, maintenance, and operation of a racing team in the IndyCar series. Beginning in 2008, the National Guard annually...
-
Dr. Massy, who specializes in internal medicine, wants to analyze his sales mix to find out how the time of his physician assistant, Consuela Ortiz, can be used to generate the highest operating...
-
Corporate taxation in South Africa is too high and has negative implications for economic growth and our competitiveness with our main trading partners." Do you agree with this statement? Why (not)?...
-
After reviewing fractal dimension in class this week, I want to revisit it with a couple of computational examples. The deletion fractal below (sometimes called a Sierpinksi hexagon) is constructed...
-
Water is being pushed through a pipe that has a 5 cm diameter at a rate of 2.0 cm/s. The pipe then enters a constriction as goes down to a smaller pipe of 3.0 cm in diameter. How fast is the water...
-
A ball with a mass of 0.50 kg and a speed of 6 m/s collides perpendicularly with a wall and bounces off with a speed of 4 m/s in the opposite direction. What is the magnitude of the impulse acting on...
-
A light source with an intensity I, is shining on a sequence of polarizers. What will be the intensity on the other side of the first polarizer? Now imagine that you place a second polarizer behind...
-
You are thinking about taking gymnastics, so you go to the facility and get an idea of what to expect by looking out from the viewing room. The viewing room window is 2.00 m above the trampoline...
-
Two spherical, nonconducting, and very thin shells of uniformly distributed positive charge Q and radius d are located a distance 12d from each other. A positive point charge q is placed inside one...
-
Which approach do you believe is the most effective at creating intrusion value? Which approach is best at creating brand recognition and recall? Brand loyalty?
-
Do animals have rights? If so, what are they? What duties do human beings have toward animals? Does KFC protect animal welfare at an acceptable level?
-
OMalley Corporation was incorporated and began business on January 1, 2015. It has been successful and now requires a bank loan for additional working capital to finance expansion. The bank has...
-
Presented below is information related to Viel Company at December 31, 2015, the end of its first year of operations. (a) income from operations, (b) net income, (c) net income attributable to Viel...
-
Financial Reporting Problem Marks and Spencer plc (M&S) The financial statements of M&S (GBR) are presented in Appendix A. The companys complete annual report, including the notes to the financial...
Study smarter with the SolutionInn App