The KLM Company has established the following overhead cost pools and cost drivers. Estimated Level for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The KLM Company has established the following overhead cost pools and cost drivers. Estimated Level for Cost Driver 1,000 MH Overhead Cost Pool Machine Material Handling Quality control Packaging Facility Total Machine Material Handling Quality Control Roals S S S S $ $ Estimated Overhead Cost 200,000 Machine Hours Weight of raw material Number of inspections 50,000 Number of Units 150,000 70,000 180,000 Cost Driver 650,000 Direct Labor Hours 50,000 tons 2.000 inspections 20,000 units 30,000 DLH Pool Rates An order for 500 units of product-ordered by Alfa Co.- has the following production requirements. 80 MH 10,000 tons 20 inspection Total b. c. $ Machine Material Handling Quality Control Packaging Facility 180,000 650,000 Labor An order for 500 units of product-ordered by Alfa Co.- has the following production requirements. 80 MH 10,000 tons 20 inspections 100 units 800 DLH Hours 30,000 DIH Required: a. Compute the total overhead cost that should be assigned to the order of Alfa Co., using the five cost pools and drivers. What is the overhead cost per unit ordered by Alfa Co? Suppose KLM Company were to use a single predetermined overhead rate based on machine hours. Compute the rate per hour and the total overhead assigned to the order above. The KLM Company has established the following overhead cost pools and cost drivers. Estimated Level for Cost Driver 1,000 MH Overhead Cost Pool Machine Material Handling Quality control Packaging Facility Total Machine Material Handling Quality Control Roals S S S S $ $ Estimated Overhead Cost 200,000 Machine Hours Weight of raw material Number of inspections 50,000 Number of Units 150,000 70,000 180,000 Cost Driver 650,000 Direct Labor Hours 50,000 tons 2.000 inspections 20,000 units 30,000 DLH Pool Rates An order for 500 units of product-ordered by Alfa Co.- has the following production requirements. 80 MH 10,000 tons 20 inspection The KLM Company has established the following overhead cost pools and cost drivers. Estimated Level for Cost Driver 1,000 MH Overhead Cost Pool Machine Material Handling Quality control Packaging Facility Total Machine Material Handling Quality Control Roals S S S S $ $ Estimated Overhead Cost 200,000 Machine Hours Weight of raw material Number of inspections 50,000 Number of Units 150,000 70,000 180,000 Cost Driver 650,000 Direct Labor Hours 50,000 tons 2.000 inspections 20,000 units 30,000 DLH Pool Rates An order for 500 units of product-ordered by Alfa Co.- has the following production requirements. 80 MH 10,000 tons 20 inspection Total b. c. $ Machine Material Handling Quality Control Packaging Facility 180,000 650,000 Labor An order for 500 units of product-ordered by Alfa Co.- has the following production requirements. 80 MH 10,000 tons 20 inspections 100 units 800 DLH Hours 30,000 DIH Required: a. Compute the total overhead cost that should be assigned to the order of Alfa Co., using the five cost pools and drivers. What is the overhead cost per unit ordered by Alfa Co? Suppose KLM Company were to use a single predetermined overhead rate based on machine hours. Compute the rate per hour and the total overhead assigned to the order above. Total b. c. $ Machine Material Handling Quality Control Packaging Facility 180,000 650,000 Labor An order for 500 units of product-ordered by Alfa Co.- has the following production requirements. 80 MH 10,000 tons 20 inspections 100 units 800 DLH Hours 30,000 DIH Required: a. Compute the total overhead cost that should be assigned to the order of Alfa Co., using the five cost pools and drivers. What is the overhead cost per unit ordered by Alfa Co? Suppose KLM Company were to use a single predetermined overhead rate based on machine hours. Compute the rate per hour and the total overhead assigned to the order above.
Expert Answer:
Answer rating: 100% (QA)
a Total Overhead Cost Assigned to the Order Machine Hours MH Overhead Cost 200000 100080 16000 Mater... View the full answer
Related Book For
Management Accounting
ISBN: 9781760421144
7th Edition
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
Posted Date:
Students also viewed these accounting questions
-
The accountant for Snappy photographic Supply Ltd has estimated the following activity cost pools and activity drivers for the coming year: An order for 1000 boxes of film development chemicals has...
-
Use Eq. (13) to show that (x, y) = ln r is harmonic. 1 Af = frr + fee + = fr 1 2
-
What is the difference between an assignment of a lease and a sublease?
-
Vietnam is a country undergoing a transformation from a centrally planned socialist economy to a system that is more market-oriented. The transformation dates back to 1986, a decade after the end of...
-
What is the default filename that make will process if no other is given?
-
Karen Noonan opened Clean Sweep Inc. on February 1, 2017. During February, the following transactions were completed. Feb. 1 Issued 5,000 shares of Clean Sweep common stock for $13,000. Each share...
-
Topic : SQL DDL & DML Purpose The purpose of this assignment is to help you learn more about SQL. Brief Introduction SQL is a domain-specific language used in programming and designed for managing...
-
KJJ Corp. was formed on October 10, 2001 by Kimberly Jen (123-45-6789), Jennifer James (234-56\(7890)\) and James \(\operatorname{Kim}(345-67-8901)\). It is a hardware store and is located at 175...
-
The types of working conditions at the Triangle company had been common in American industries for a century. Why do you think the Triangle fire finally became such a significant catalyst to legal...
-
What Is An IPO? https://www.forbes.com/advisor/investing/initial- public-offering-ipo/ IPO Investing Is Exciting, but Experts Warn to Proceed with Caution. Try These Safer Alternatives Instead...
-
In testing controls over cash disbursements, an auditor most likely would determine that the person who signs the check also: A . Is denied access to the supporting documents. B . Approves the...
-
Explain the statement, "Directives get people out of their ruts with the smallest change possible." How does that happen? Give an example. Include at least one scholarly source to support the...
-
To whom it may concern: Good evening, from North Carolina! I hope this message finds you in high and creative energy! So, I have a question that I need someone's assistance on. Can someone help me...
-
Which is NOT true about buying / selling Bitcoins on a centralized exchange (e.g. Coinbase)? You can get better prices than buying / selling on decentralized exchange You can find these transactions...
-
Write a reflection paper in which you give in-depth consideration and personalization of the imperative for ethics in your proposed research. Explore potential ethical issues that could affect your...
-
1. True or False. Pitfalls to consider in a statistical test include nonrandom samples, small sample size, and lack of causal links. 2. Because 25 percent of the students in my morning statistics...
-
Process costing is a product costing system, yet the focus is on the cost of processes or production departments. Explain why.
-
Refer to the data given in Exercise 21-23. In E21-23 Tiger's Place is a not-for-profit nursery run by the parents of the enrolled children. Since the school is out of town, it has a water storage...
-
Explain how the existence of spare or full production capacity can affect the choice of whether to accept or reject a special order.
-
Taxes are paid each year on some measure of financial gain. We typically think of financial gain as cash inflows minus cash outflows, and yet simply subtracting outflows due to capital investments in...
-
SteelTubes had sales of \($300\) million this year. Expenses were \($250\) million. Aside from these figures, the company also invested in new mills for carbon steel tubing, complete with peripheral...
-
True or False: The Modified Accelerated Cost Recovery System is the most popular depreciation method used in computing corporate income tax liabilities.
Study smarter with the SolutionInn App