Robinson Manufacturing Company currently is assigning factory overhead cost to jobs based upon direct labor hours....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Robinson Manufacturing Company currently is assigning factory overhead cost to jobs based upon direct labor hours. Company is setting its sales prices for the jobs based on the cost of the job. Specifically, the price is "Cost + 120% of Cost. Due to dissatisfaction of some of the company customers with the prices charged, Robinson's management has hired you to study the issue and make a recommendation. For this purpose, Company has compiled the data on the second Tab of the Excel file entitled "FOH Rate", including the data on two jobs as follows: Direct Material Cost Direct Labor Cost Direct Labor Hours. Machine Hours Job 101 $2,500 $480.00 24 165 Job 102 $3,000 $240.00 12 270 Place the answer to the following questions of the management in the space provided on the Excel (space is highlighted in yellow). 1. Is company currently using appropriate allocation base? Why? Compute cost of Job 101 and Job 102 using your recommended allocation base, assuming one allocation base is allowed for the assignment of factory overhead, 3. Compute selling price of Job 101 and Job 102 using your recommended allocation base, assuming one allocation base is allowed for the assignment of factory overhead. 4. Compute cost of Job 101 and Job 102, assuming two allocation base is allowed for the assignment of factory overhead. 5. Compute selling price of Job 101 and Job 102, assuming two allocation base is allowed for the assignment of factory overhead. Month January February March April May June July August September October November December Direct Material Cost Direct Labor Cost Direct Labor Hours Machine Hours Factory Overhead Cost $335,000 $329,000 $355,000 $315,000 $322,000 $342,000 $289,000 $375,000 $302,000 $322,000 $309,000 $349,000 Job 101 $2,500 $480.00 24 165 Direct Labor Hours 43,000 40,000 42,000 37,000 40,000 41,500 35,000 40,500 33,000 37,000 34,000 37,000 Job 102 $3,000 $240.00 12 270 Machine Hours 246,000 263,000 284,000 237,000 242,000 270,000 246,000 342,000 242,000 268,000 244,000 285,000 Robinson Manufacturing Company currently is assigning factory overhead cost to jobs based upon direct labor hours. Company is setting its sales prices for the jobs based on the cost of the job. Specifically, the price is "Cost + 120% of Cost. Due to dissatisfaction of some of the company customers with the prices charged, Robinson's management has hired you to study the issue and make a recommendation. For this purpose, Company has compiled the data on the second Tab of the Excel file entitled "FOH Rate", including the data on two jobs as follows: Direct Material Cost Direct Labor Cost Direct Labor Hours. Machine Hours Job 101 $2,500 $480.00 24 165 Job 102 $3,000 $240.00 12 270 Place the answer to the following questions of the management in the space provided on the Excel (space is highlighted in yellow). 1. Is company currently using appropriate allocation base? Why? Compute cost of Job 101 and Job 102 using your recommended allocation base, assuming one allocation base is allowed for the assignment of factory overhead, 3. Compute selling price of Job 101 and Job 102 using your recommended allocation base, assuming one allocation base is allowed for the assignment of factory overhead. 4. Compute cost of Job 101 and Job 102, assuming two allocation base is allowed for the assignment of factory overhead. 5. Compute selling price of Job 101 and Job 102, assuming two allocation base is allowed for the assignment of factory overhead. Month January February March April May June July August September October November December Direct Material Cost Direct Labor Cost Direct Labor Hours Machine Hours Factory Overhead Cost $335,000 $329,000 $355,000 $315,000 $322,000 $342,000 $289,000 $375,000 $302,000 $322,000 $309,000 $349,000 Job 101 $2,500 $480.00 24 165 Direct Labor Hours 43,000 40,000 42,000 37,000 40,000 41,500 35,000 40,500 33,000 37,000 34,000 37,000 Job 102 $3,000 $240.00 12 270 Machine Hours 246,000 263,000 284,000 237,000 242,000 270,000 246,000 342,000 242,000 268,000 244,000 285,000
Expert Answer:
Answer rating: 100% (QA)
1Based on your analysis and computations above what would you recommend to the management of Robinso... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
The Pacific Manufacturing Company operates a job-order costing system and applies overhead cost to jobs on the basis of direct labor cost. In computing an overhead rate for the year, the companys...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
For each equation: a) Tell whether the equation describes a parabola, an ellipse, or a hyperbola. b) State whether the directrix is vertical or horizontal and give its location in relation to the...
-
1. The average velocity of a mini-bike is 15.0 km/h. How long does it take for the bike to go 35.0 m? 2. A sprinter starting from rest reaches a final velocity of 18.0 mi/h. What is her average...
-
Bryce's basis in the Markit Partnership is $58,000. In a proportionate liquidating distribution, Bryce receives the following assets: .................................Tax Basis..............FMV...
-
Selected information follow for Bush Company: Required a. Calculate the following ratios for 2019. The 2018 results are given for comparative purposes. b. Comment on the changes between the two...
-
Isner Racket Company manufactures two types of tennis rackets, the Ace and Pro Tour models. The production budget for August for the two rackets is as follows: Both rackets are produced in two...
-
reynis powell, after uncovering an ethical conflict after being slated for a special assignment, decides to do nothing to resolve the situation, believing the conflict is small enough to warrant...
-
Suppose you are a bank lending officer at the Midtown National Bank considering a loan request from Miller Manufacturing company for $1.05 million. The firm currently has $1 million in equity and its...
-
Use of Technology in enhancing skills of Marketers while working on Marketing Communication a questionnaire of 15 questions on this topic to ask from marketing professionals. these questions should...
-
Rachel purchased a car for $21,500 three years ago using a 4-year loan with an interest rate of 9.0 percent. She has decided that she would sell the car now, if she could get a price that would pay...
-
1.Do you think violence is instinctive or normative? Explain your reasoning. 2After reading the article "What Sociologists can tell us about Serial Killing," can structural preconditions explain the...
-
How much work is required to move a + 1 . 0 0 C charge from a point at an electric potential of + 4 0 0 . V to another at + 5 5 0 . V ?
-
What is the difference between ohmic and non-ohmic devices? Give examples.
-
Question 3 (10 marks) Nicotine patches are designed to help people stop smoking by delivering nicotine (C10H14N2 MW 162.2 g/mol) directly to the blood through the skin. The patches are effective for...
-
For the year ending December 31, 2022, Skysong, Inc. reports net income $139,000 and cash dividends $86,000. Determine the balance in retained earnings at December 31 assuming the balance in retained...
-
Write electron configurations for the following ions, and determine which have noble-gas configurations: (a) Cd2+ (b) p3- (c) Zr4+ (d) Ru3+ (e) As3- (f) Ag+
-
Mercury, Inc., produces cell phones at its plant in Texas. In recent years, the companys market share has been eroded by stiff competition from overseas. Price and product quality are the two key...
-
Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains warehouses that stock items carried by its dot.com clients. When a client receives an order from a...
-
Superior Micro Products uses the FIFO method in its process costing system. Data for the Assembly Department for May appear below: Required: Compute the cost per equivalent unit for materials, labor,...
-
Which of the following is not a cash equivalent? a. Short-term U.S. Treasury bill b. Short-term certificate of deposit c. Money-market account d. IBM common stock
-
Which of the following methods will disclose the cash received from customers in the statement of cash flows? a. Indirect method b. Reconciliation method c. Direct method d. Both direct and indirect...
-
Which of the following expenses are not added back to net income when using the indirect method to prepare a statement of cash flows? a. Amortization expense b. Depletion expense c. Interest expense...
Study smarter with the SolutionInn App