Hernandez Machine Parts Company selected a single cost-allocation base in each department, machine hours in machining...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Hernandez Machine Parts Company selected a single cost-allocation base in each department, machine hours in machining and direct-labor cost in assembly, for applying overhead. Hernandez prepared the following 20X0 data: B (Click the icon to view the manufacturing-overhead budget.) (Click the icon to view the overhead rates for the two departments.) (Click the icon to view the total factory overhead. applied calculation.) Requirement 1. Determine the formula, then compute the budgeted overhead application rate for the factory using the budgeted data. (Round your answer to five decimal places.) X Requirement 2. If Hernandez used 70,400 machine hours during 20X0, what was the total factory overhead applied to products? Determine the formula, then compute the total factory overhead applied. (Enter the rate to five decimal places, X.XXXXX. Round your answer to the nearest whole dollar.) X Suppose Hernandez decided to use only one overhead cost pool for both departments with machine hours as the single cost-allocation base. The machining department had budgeted 70,000 machine-hours in 20X0. Read the requirements. In requirement 2 (one overhead application rate is used), the overhead is used is the budgeted machine hours. Budgeted overhead application rate Requirement 3. The applied factory overhead based on separate application rates for the machining and assembly departments was $372,580. Explain why this amount is different than the applied amount from requirement 2. by $ This is due to the amount of machine hours Total factory overhead applied When separate overhead application rates are used, the total applied overhead is $372,580. This is $ Print Total factory overhead applied Suppose Hernandez had used 70,400 machine hours in machining and incurred $189,000 of direct-labor cost in assembly during the year. Machining: 70,400 actual machine hours x $3.95 Assembly: $189,000 actual direct-labor cost x 50% Total factory overhead applied Done than budgeted and is $ 278,080 94,500 $ 372,580 Manufacturing-overhead budget Indirect labor Supplies Utilities Repairs Factory rent Supervision Depreciation on equipment Insurance, property taxes, etc.. Total Machining Assembly $ 75,100 $ 36,200 8,600 2,500 20,300 7,100 10,200 3,100 10,200 6,300 42,400 35,800 102,400 9,500 7,300 2,500 276,500 $ 103,000 $ X Overhead rates Budgeted manufacturing overhead Budgeted machine hours Budgeted direct-labor cost Budgeted overhead rate, per machine hour: $276,500/70,000 = Budgeted overhead rate, per direct labor dollar: $103,000 / $206,000 = Machining Assembly 276,500 $ 103,000 70,000 $ Year 20X0 6A 3.95 $ 206,000 50 % Hernandez Machine Parts Company selected a single cost-allocation base in each department, machine hours in machining and direct-labor cost in assembly, for applying overhead. Hernandez prepared the following 20X0 data: B (Click the icon to view the manufacturing-overhead budget.) (Click the icon to view the overhead rates for the two departments.) (Click the icon to view the total factory overhead. applied calculation.) Requirement 1. Determine the formula, then compute the budgeted overhead application rate for the factory using the budgeted data. (Round your answer to five decimal places.) X Requirement 2. If Hernandez used 70,400 machine hours during 20X0, what was the total factory overhead applied to products? Determine the formula, then compute the total factory overhead applied. (Enter the rate to five decimal places, X.XXXXX. Round your answer to the nearest whole dollar.) X Suppose Hernandez decided to use only one overhead cost pool for both departments with machine hours as the single cost-allocation base. The machining department had budgeted 70,000 machine-hours in 20X0. Read the requirements. In requirement 2 (one overhead application rate is used), the overhead is used is the budgeted machine hours. Budgeted overhead application rate Requirement 3. The applied factory overhead based on separate application rates for the machining and assembly departments was $372,580. Explain why this amount is different than the applied amount from requirement 2. by $ This is due to the amount of machine hours Total factory overhead applied When separate overhead application rates are used, the total applied overhead is $372,580. This is $ Print Total factory overhead applied Suppose Hernandez had used 70,400 machine hours in machining and incurred $189,000 of direct-labor cost in assembly during the year. Machining: 70,400 actual machine hours x $3.95 Assembly: $189,000 actual direct-labor cost x 50% Total factory overhead applied Done than budgeted and is $ 278,080 94,500 $ 372,580 Manufacturing-overhead budget Indirect labor Supplies Utilities Repairs Factory rent Supervision Depreciation on equipment Insurance, property taxes, etc.. Total Machining Assembly $ 75,100 $ 36,200 8,600 2,500 20,300 7,100 10,200 3,100 10,200 6,300 42,400 35,800 102,400 9,500 7,300 2,500 276,500 $ 103,000 $ X Overhead rates Budgeted manufacturing overhead Budgeted machine hours Budgeted direct-labor cost Budgeted overhead rate, per machine hour: $276,500/70,000 = Budgeted overhead rate, per direct labor dollar: $103,000 / $206,000 = Machining Assembly 276,500 $ 103,000 70,000 $ Year 20X0 6A 3.95 $ 206,000 50 %
Expert Answer:
Answer rating: 100% (QA)
From the information provided to answer Requirement 1 we need to determine the budgeted overhead application rate for the factory using the budgeted d... View the full answer
Related Book For
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
Posted Date:
Students also viewed these general management questions
-
In three dimensions the equation Question 12 22 + y? = 1 Not yet answered Marked out of 7 represents a Similarly, the equation P Flag question y? +22 = 1 represents another cylinder. These cylinders...
-
The Tsang Manufacturing Company has two producing departments, machining and assembly. Mr. Tsang recently automated the machining department. The installation of a computer-aided manufacturing (CAM)...
-
Garcia, Inc. uses a job-order costing system for its products, which pass from the Machining Department, to the Assembly Department, to finished-goods inventory. The Machining Department is heavily...
-
Under Social Security, the family of a worker who dies while fully insured at the time of death has a right to survivors' benefits. True False
-
Repeat Prob. 4-88 for aluminum balls.
-
In the laminar flow of an oil of viscosity \(1 \mathrm{~Pa} \cdot \mathrm{s}\), the velocity at the center of a \(0.3 \mathrm{~m}\) pipe is \(4.5 \mathrm{~m} / \mathrm{s}\) and the velocity...
-
Cost-plus and target pricing. ($. $ridhar, adapted) Waterford, Inc., manufactures and sells 15,000 units of a raft RF17 in 2007. The full cost per unit is $240. Waterford earns a 20% return on an...
-
Alubar, a U.S. multinational, receives royalties from Country A, foreign-branch earnings from Country B, and dividends equal to 50 percent of net income from subsidiaries in Countries C and D. There...
-
Groupers Grocery Store developed the following information for the month of March, 2021: Balance per books March 31 $1,975 Balance per bank statement March 31 $12,100 1. Cheques written in March but...
-
The CitruSun Corporation ships frozen orange juice concentrate from processing plants in Eustis and Clermont to distributors in Miami, Orlando, and Tallahassee. Each plant can produce 20 tons of...
-
Drawadiagramofapurelycompetitivefirmthatshowslosses.Thendiscussyourdiagram.
-
Customers arrive at a ferry ticket office at the rate of 14 per hour on Monday morn- ings. This can be described by a Poisson distribution. Selling the tickets and pro- viding general information...
-
Glen County manages a waste-to-energy facility that burns 2,000 tons of trash per day and generates over \($20\) million in electricity annually while costing state and local taxpayers \($24\)...
-
Carry out a full decision analysis for Classical Reproductions Ltd, using the following information: Calculation of expected profit with perfect information Prior probabilities for the various events...
-
T and B lymphocytes are normal components of the immune system, but in multiple sclerosis they become autoreactive and attack the central nervous system. What triggers the autoimmune process? One...
-
Prove (11.32) . E (Yi,k | Zi = 0, = e) = E (Yi,k | i = 1, = e) = E (Yi,k | Ti = e), k = 1,2. (11.32)
-
a) Which of the items listed below represent financial assets? (It can be more than one or none.) Mickey Mouse brand name Disney common stock Disney bonds Florida state bonds Apartment building...
-
Use nodal analysis to determine voltages v1, v2, and v3 in the circuit Fig. 3.76. Figure 3.76 4 S 3i, 2 A 4A
-
Refer to Exhibits 2-2 and 2-3 on pages 38 and 39. Part of a companys marketing function is as described in Exhibit 2-2. Two of the many marketing-function activities are advertising and selling. The...
-
On February 25, 2011, Medtronic , the Minneapolis-based medical technology company, bought 100% of Jolife AB , a company that develops, manufactures, and markets the LUCAS Chest Compression System...
-
Maintaining a clean working environment is important to Napco, an industrial parts manufacturer. Cleaning the plant is the responsibility of the maintenance department. The 50,000 square foot plant...
-
A third-party logistics provider (3PL) provides outsourced or third-party logistics services to companies for part or all of their distribution activities. Examples include DHL, DB Schenker...
-
Your parent company is supposedly based in Singapore with manufacturing plants in Malaysia. The company sells sterile dressings and other surgical disposal items to hospitals and clinics in over 30...
-
Procter and Gamble (P&G) and Unilever are the two leading firms in the consumer products industry for offerings such as soap, shampoo, and laundry detergent. P&G (www.pg.com) is based in the United...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App