Yousef Ibrahim manages a plastics plant. He has provided you with the following data. Yousef believes that
Question:
Yousef believes that the factory has a practical capacity of 25,000 machine hours. He wants to determine the full cost of a machine hour to use in determining his product mix over the next two to three years.
Required:
Forming a cost pool that contains all machine related costs in the above accounts, compute the overhead rate per machinehour.
Transcribed Image Text:
Tools, jigs and fixtures Machine operators Oils, coolants and lubricants 67,50 Factory power 650,000 Traceable to individual products 240000 Salaried employees Reqied to operate machines 125,000 30% is used for general heating and lighting Although the average machine lasts many years, Yousef spends considerable amounts to replace worn-out machines each year 60% occupied by various machines. The plant is in year 3 of a 10-year lease Machine depreciation $1,200,000 Factory lease 144,000 Total costs $2,436,500
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 45% (11 reviews)
The calculations are as below Machine depreciation 1200000 This cost depends on the rate at which we ...View the full answer
Answered By
Muhammad Khurram
I have strong General Management skills to apply in your projects. Over last 3 years, I have acquired great knowledge of Accounting, Auditing, Microsoft Excel, Microsoft PowerPoint, Finance, Microsoft Project, Taxation, Strategic Management, Human Resource, Financial Planning, Business Planning, Microsoft Word, International Business, Entrepreneurship, General Management, Business Mathematics, Advertising, Marketing, Supply Chain, and E-commerce. I can guarantee professional services with accuracy.
4.80+
249+ Reviews
407+ Question Solved
Related Book For
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
Question Posted:
Students also viewed these Managerial Accounting questions
-
A manufacturing company has provided you with the following data, which relate to component RYX for the period which has just ended: Overheads are absorbed at a rate per standard labour hour. (a) (i)...
-
The Piano Studio Ltd. has provided you with the following information with respect to its piano inventory for the month of August. The company uses the specific identification cost formula....
-
The accountant for Jerico Co. has provided you with the following information for the month of March 2015. Cash Account Transactions for March: GL ACCOUNT: 1020 Cash Account For the period of March...
-
5. Did Danone follow the advice regarding JVs in China mentioned in the list just above? Which aspects did it follow and which did it not? Danone's Wrangle with Wahaha In 1996, In 1996, Danone Group...
-
Convert the following temperatures to degrees Celsius: (a) 77 K, the boiling point of liquid nitrogen, (b) 4.2 K, the boiling point of liquid helium, (c) 601 K, the melting point of lead.
-
Mike Danes has been delayed in going to the annual sales event at one of his favorite apparel stores. His friend has just texted him that there are only 20 shirts left, of which eight are in size M,...
-
Suppose your name is Grant Scheffer, and Advanced Automotive repaired your car. You settled the bill as noted on the following invoice. To you this is a purchase invoice. To Advanced Automotive, it...
-
Coca-Cola is a well-established consumer products company with a strong position in the global market. The sales of their core soda products have remained relatively stable for decades, yet the...
-
The eText describes various types of strategies that can be used by organizations. These strategies include: Growth or expansion strategies. Concentrate resources strategies, for increased leverage....
-
What do you think of the comments of these two experts? Draw a process flow diagram for each of the two expert proposals. For each proposal, compute process capacity, labor utilization, and costs of...
-
The following table provides the ABC report for product KJ-29. The firm currently sells 6,000 units of KJ-29 for $16 per unit. Required: The firm is considering lowering the price of KJ-29 to $15.25...
-
A world-famous photographer of wild animals and nature, Sonja Rego sells framed prints of select photographs over the Internet. Regardless of the picture bought, she offers buyers a choice in...
-
Lets assume we live in a nation where the minimum wage is not applicable. The labor market is free to adjust to changes in the economy by modifying the wage rate. However, during recessionary times,...
-
January 1, 2022 2022 December 31, 2022 Raw materials inventory $19,200 $27,600 Work in process inventory 12,600 15,900 Finished goods inventory 24,900 19,320 Materials purchased $138,000 Direct labor...
-
Find the volume of a beverage can that has a height of 6.8 in. and a diameter of 3.6 in. Use 3.14 as an approximation for The volume of the can is (Type an integer or a decimal rounded to the nearest...
-
Ensign Company produces two products (Shirts and Pants), however their ability to produce these products are constrained by machine hours with total capacity of 2,000 minutes per week. Shirts Pants...
-
Heavy Rocks Company acquires 100% of the stock of Simple Machinery Co. on January 1, 2XX0, for $7,200,000 cash. As of that date Simple Machinery had the following account balances: Book Value Fair...
-
Assessment 3 - Structured Activity - Bookkeepers Policies and Procedure Manual Policies and Procedure Manual - Using the documents and tools you have created in your previous assessment tasks you are...
-
Consider the two-component mixture with \(\psi_{0}\) standard normal, and \(\psi_{1}\) standard Cauchy. The null hypothesis is all Gaussian, i.e., \(\theta=(1,0)\). Show that \(\hat{\theta}_{1}>0\)...
-
Consider the reaction of acetic acid in water CH 3 CO 2 H(aq) + H 2 O(l) CH3CO 22 (aq) + H 3 O + (aq) where Ka 5 1.8 3 1025. a. Which two bases are competing for the proton? b. Which is the stronger...
-
Analyse the role of HRM and ER in post-merger integration
-
Two types of present value tables may be used with the discounted cash flow technique. Identify the tables and the circumstance(s) when each table should be used.
-
The steps in managements decision-making process are listed in random order below. Indicate the order in which the steps should be executed. Make a decision. .........Review results of the decision....
-
The steps in managements decision-making process are listed in random order below. Indicate the order in which the steps should be executed. Make a decision. .........Review results of the decision....
-
Majesty Company uses target costing to ensure that its products are profitable. Assume Majesty is planning to introduce a new product with the following estimates: Annual demand Estimated market...
-
Summarise the main features of households with financial and mortgage debt by age given in Tables 1a and 1b below and comment on differences between and within age groups over time. Table1a...
-
The side of a festival food tent is staked with two guidelines as shown. If the force in the rope going from A to B is 450 lbs and the force in the rope going from A to C is 300 lbs, what is the...
Study smarter with the SolutionInn App