Armidale Sisters is debating the use of direct labor (DL) cost or direct labor (DL) hours...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Armidale Sisters is debating the use of direct labor (DL) cost or direct labor (DL) hours as the cost allocation base for allocating manufacturing overhead costs. The following information is available for the year ended December 31, 2020: $437,500 Estimated direct labor cost Actual direct labor cost $447,000 $350,000 Estimated manufacturing overhead costs Actual manufacturing overhead (MOH) $338,000 costs Estimated direct labor hours Actual direct labor hours 25,000 24,200 Work out the following: a) Predetermined budgeted MOH rate using direct labor cost as the allocation base b) Predetermined budgeted MOH rate using direct labor hours as the allocation base c) Allocated MOH based on direct labor cost d) Allocated MOH based on direct labor hours Armidale Sisters is debating the use of direct labor (DL) cost or direct labor (DL) hours as the cost allocation base for allocating manufacturing overhead costs. The following information is available for the year ended December 31, 2020: $437,500 Estimated direct labor cost Actual direct labor cost $447,000 $350,000 Estimated manufacturing overhead costs Actual manufacturing overhead (MOH) $338,000 costs Estimated direct labor hours Actual direct labor hours 25,000 24,200 Work out the following: a) Predetermined budgeted MOH rate using direct labor cost as the allocation base b) Predetermined budgeted MOH rate using direct labor hours as the allocation base c) Allocated MOH based on direct labor cost d) Allocated MOH based on direct labor hours
Expert Answer:
Answer rating: 100% (QA)
a Predeterminded MOH rate using direct labor cost as allocation base Predeterminded MOH rate Estimat... View the full answer
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Posted Date:
Students also viewed these accounting questions
-
The following information was available for the year ended December 31, 2013 Required: a. Calculate the inventory turnover for 2013. b. Calculate the number of days sales in inventory for 2013, using...
-
Quick Step Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the...
-
The following information is available for the year ended 31 March 20X6 (values in $m): Present value of scheme liabilities at 1 April 20X5 $1,007; Fair value of plan assets at 1 April 20X5 $844;...
-
What is the asset-liability time mismatch that all banks face?
-
You have been hired to work in the IS area of a manufacturing company that is starting to use the Internet to order parts from its suppliers and to offer sales and support to its customers. What...
-
A particle carrying \(+3.00 \mathrm{nC}\) of positive charge is at the origin of an \(x y\) coordinate system. Take \(V(\infty)\) to be zero for these calculations. (a) Calculate the potential \(V\)...
-
With reference to the Example 3 concerning improvements in the safety of an ignitor, the time to reach maximum pressure was also recorded. Two replicates were run of the factorial design and the...
-
Colaw Company bottles and distributes No-FIZZ, a fruit drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 70 cents per bottle. For the year 2012,...
-
The Simmons Corporation's income statement is given below. SIMMONS CORPORATION Sales $231,000 Cost of goods sold 116,000 Gross profit 115,000 Fixed charges (other than interest) 29,700 Income before...
-
Univex is a calendar year, accrual basis retail business. Its financial statements provide the following information for the year: Revenues from sales of goods $ 783,200 Cost of goods sold (FIFO) ...
-
XYZ Company has designed a new and improved widget. Pricing will be determined on a cost-plus basis, and the company standard will be to charge cost plus 35%. XYZ has organized its systems into four...
-
Suppose you invest $1,000 today, compounded quarterly, with the annual interest rate of 5%. What is your investment worth in one year?
-
FIFO inventory assumptions: Beginning inventory of 10 units @ $5 = $50 Purchases month #1 of 10 units @ $10 = $100 Purchases month #2 of 10 units @ $15 = $150 Cost of goods available for sale...
-
his is an interesting problem because you can infer so much from just two numbers. An airplane lands on a runway, and using its brakes it slows with uniform acceleration such that 2 5 seconds later...
-
Calculate WACC: WACC: Use CAPM Cost of Equity ( This is all the information given ) 3. Calculate WACC: Market value of equity: Market value of debt: Total Debt Weight: Equity Weight: Tax rate: WACC:...
-
You spend $1,000 using a new credit card. Your bank asks you to repay your debt via an annuity of 50 monthly payments, each of $50. What is the total cost (i.e., ignoring time value of money) of...
-
Advise Huawei executives of the difficulties involved in incorporating CSR activities and practices while preserving the standard of core services.
-
1. Firms may hold financial assets to earn returns. How the firm would classify financial assets? What treatment will such financial assets get in the financial statements in accordance with US GAAP...
-
Which one of the following statements is incorrect? a. The scattergraph method can be somewhat subjective depending on where one visually places the regression line. b. The scattergraph method is the...
-
What is one way that traditional performance measurement systems, which have historically been tied to financial reporting, may be dysfunctional?
-
For a stock option to be valuable at some future point in time, what must happen to the companys stock price?
-
Dunkirk Consulting wishes to predict the amount of overhead expense that will be incurred by a consulting contract, to develop more accurate bids for future con- tracts. Dunkirk has the following...
-
Block Commodities has gathered the following information concerning rock salt deliveries to its clients, which it believes are highly seasonal: a. Suppose Block Commodities calculated a set of...
-
The service center at a large automobile dealership is trying to boost revenue by pro- viding no-appointment-necessary oil changes to any type of vehicle that stops by the service center. To quickly...
Study smarter with the SolutionInn App