Donovan & Parents produces soccer shorts and jerseys for youth leagues. Most of the production is...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Donovan & Parents produces soccer shorts and jerseys for youth leagues. Most of the production is done by machine. Data on operations and costs for March follow. Units produced Machine-hours used Direct labor-hours Direct materials costs Jerseys 9,300 980 240 $12,500 Shorts Direct labor costs $ 4,800 5,300 820 110 $8,100 $2,200 Total 14,600 1,800 350 Manufacturing overhead costs $20,600 $ 7,000 $24,644 Management asks the firm's cost accountant to compute product costs. The accountant first assigns overhead costs to two pools: overhead related to direct materials and overhead related to machine-hours. The analysis of overhead accounts by the cost accountant follows. Account Utilities Supplies Machine depreciation and maintenance Purchasing and storing materials Miscellaneous Amount $ 4,020 Related to: Machine-hours 2,720 Materials 10,190 Machine-hours 4,284 3,430 Materials Machine-hours Required: a. Compute the predetermined overhead rates assuming that Donovan uses machine-hours to allocate machine-related overhead costs and materials costs to allocate materials-related overhead costs. b. Compute the total costs of production and the cost per unit for each of the two products for March. Complete this question by entering your answers in the tabs below. Required A Required B Compute the total costs of production and the cost per unit for each of the two products for March. (Do not round intermediate calculations. Round your "Cost per unit" to 2 decimal places.) Total cost Cost per unit Jerseys Shorts < Required A Required B > Complete this question by entering your answers in the tabs below. Required A Required B Compute the predetermined overhead rates assuming that Donovan uses machine-hours to allocate machine-related overhead costs and materials costs to allocate materials-related overhead costs. (Round "Machine-related overhead" rate to 2 decimal places and enter "Materials related overhead" rate as a whole percentage (i.e., 32).) Overhead Rate Machine-hour related Materials related per hour % < Required A Required B > Donovan & Parents produces soccer shorts and jerseys for youth leagues. Most of the production is done by machine. Data on operations and costs for March follow. Units produced Machine-hours used Direct labor-hours Direct materials costs Jerseys 9,300 980 240 $12,500 Shorts Direct labor costs $ 4,800 5,300 820 110 $8,100 $2,200 Total 14,600 1,800 350 Manufacturing overhead costs $20,600 $ 7,000 $24,644 Management asks the firm's cost accountant to compute product costs. The accountant first assigns overhead costs to two pools: overhead related to direct materials and overhead related to machine-hours. The analysis of overhead accounts by the cost accountant follows. Account Utilities Supplies Machine depreciation and maintenance Purchasing and storing materials Miscellaneous Amount $ 4,020 Related to: Machine-hours 2,720 Materials 10,190 Machine-hours 4,284 3,430 Materials Machine-hours Required: a. Compute the predetermined overhead rates assuming that Donovan uses machine-hours to allocate machine-related overhead costs and materials costs to allocate materials-related overhead costs. b. Compute the total costs of production and the cost per unit for each of the two products for March. Complete this question by entering your answers in the tabs below. Required A Required B Compute the total costs of production and the cost per unit for each of the two products for March. (Do not round intermediate calculations. Round your "Cost per unit" to 2 decimal places.) Total cost Cost per unit Jerseys Shorts < Required A Required B > Complete this question by entering your answers in the tabs below. Required A Required B Compute the predetermined overhead rates assuming that Donovan uses machine-hours to allocate machine-related overhead costs and materials costs to allocate materials-related overhead costs. (Round "Machine-related overhead" rate to 2 decimal places and enter "Materials related overhead" rate as a whole percentage (i.e., 32).) Overhead Rate Machine-hour related Materials related per hour % < Required A Required B >
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Donovan & Parents produces soccer shorts and jerseys for youth leagues. Most of the production is done by machine. Data on operations and costs for March follow: Management asks the firm's cost...
-
Donovan & Parents produces soccer shorts and jerseys for youth leagues. Most of the production is done by machine. Data on operations and costs for March follow. JerseysShortsTotalUnits...
-
Question 13 Case Study - Little Pear Administration Pty Ltd (LPA) You are the payroll officer for Little Pear Administration Pty Ltd (LPA). Debra Foy is a company employee and has approached you with...
-
Consider the following linear program: Max 2A + 3B s.t. 5A + 5B ¤ 400 Constraint1 -1A + 1B ¤ 10 Constraint 2 1A + 3B ¥ 90 Constraint 3 A, B ¥ 0 Figure shows a graph of the...
-
Once a litigation matter is appealed, what are the four types of decisions that an appellate court may make? Explain each type.
-
For the following purchases of merchandise, determine the amount of cash to bepaid: Total Invoice Cr Credit Terms Amount of Freight Ivice Returs andDate PurchaseDate Purchase Charges Amount...
-
you need to pick a business of your choice and test it's vision statement using the following questions: Is our vision statement primarily comprised of real, clear words people understand and use or...
-
Financial institutions, such as the Banking systems...Create a report that focuses on the data used to support the operation of your organization in your case study and answer the following...
-
What is a haplotype? a. A species with one set of chromosomes b. A cell with one set of chromosomes c. The linkage of alleles or molecular markers on a chromosome d. All of the above describe a...
-
During two-dimensional gel electrophoresis, proteins are separated based on a. their net charge at a given pH. b. their mass. c. their ability to bind to a specific resin. d. both a and b.
-
Locus heterogeneity means that a genetic disorder a. has a heterogeneous phenotype. b. is caused by mutations in two or more different genes. c. involves a structural change in multiple chromosomes....
-
The technique of tandem mass spectrometry is used to determine a. the amino acid sequence of a peptide fragment. b. the nucleotide sequence of a segment of RNA. c. the nucleotide sequence of a...
-
A means of introducing a cloned gene into cells for gene therapy is via a. liposomes. b. retroviral vectors. c. T-DNA vectors. d. either a or b.
-
Multiple Choice Questions: 1) A favorable sales volume variance in sales revenue suggests a (n): A) Increase in price. B) Increase in number of actual units sold when compared to the expected number...
Study smarter with the SolutionInn App