Joseph's company makes and sells scarves, and he has just completed his annual financial analysis for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Joseph's company makes and sells scarves, and he has just completed his annual financial analysis for the most recent year-end. The company produces two varieties of scarves: Silk and Cotton. Joseph used a single plant-wide rate based on Direct Labor (DL) hours this year just as he had for many years prior, but he is not positive that this is the best approach moving forward. Joseph has become interested in Activity-Based Costing (ABC). Joseph has determined that Manufacturing Overhead (MOH) key activities include: Folding, $19875 (driven by DL hours); Cleaning/Maintenance. $10530 (driven by cleaning/maintenance hours); and Quality inspections, $4920 (driven by number of inspections). He has compiled the following financial data to assist with his evaluation of the costing systems: Units Produced Sales Revenue Direct Materials Direct Labor Direct Labor Hours Cleaning/Maintenance Hours Quality Inspections Silk Scarves Cotton Scarves 13700 $208670 $24560 $25850 13000 $166100 $29600 $21400 6350 1000 500 6900 1700 700 What is the total amount of MOH allocated to the silk scarves using ABC? (Do not round intermediate calculations.) Joseph's company makes and sells scarves, and he has just completed his annual financial analysis for the most recent year-end. The company produces two varieties of scarves: Silk and Cotton. Joseph used a single plant-wide rate based on Direct Labor (DL) hours this year just as he had for many years prior, but he is not positive that this is the best approach moving forward. Joseph has become interested in Activity-Based Costing (ABC). Joseph has determined that Manufacturing Overhead (MOH) key activities include: Folding, $19875 (driven by DL hours); Cleaning/Maintenance. $10530 (driven by cleaning/maintenance hours); and Quality inspections, $4920 (driven by number of inspections). He has compiled the following financial data to assist with his evaluation of the costing systems: Units Produced Sales Revenue Direct Materials Direct Labor Direct Labor Hours Cleaning/Maintenance Hours Quality Inspections Silk Scarves Cotton Scarves 13700 $208670 $24560 $25850 13000 $166100 $29600 $21400 6350 1000 500 6900 1700 700 What is the total amount of MOH allocated to the silk scarves using ABC? (Do not round intermediate calculations.)
Expert Answer:
Answer rating: 100% (QA)
To calculate the total amount of Manufacturing Overhead MOH allocated to the Silk Scarves using ActivityBased Costing ABC well first allocate MOH base... View the full answer
Related Book For
Practical Management Science
ISBN: 978-1305250901
5th edition
Authors: Wayne L. Winston, Christian Albright
Posted Date:
Students also viewed these accounting questions
-
How do you feel about Freuds psychosexual stages of development? Are they realistic? Why is attachment in infancy important to relationships later in life? Have you experienced birth-order effects?...
-
LLJ Satellites: Variance Analysis and Budgeting Jack Childs is nervous about his company's future performance. The Childs family own 40% of the shares of LLJ Satellites, and generally has control...
-
An ice cream manufacturer, Cool Cream Inc., produces three types of ice creams, Vanilla, Chocolate Chip, and P.neapple Ginger sorbet. The ice cream is sold in quart size boxes. Direct Material and...
-
Construct a cumulative relative frequency histogram. Use the following information to answer question. Suppose a class of high school seniors had the following distribution of SAT scores in English....
-
A vertical force P is applied to the linkage at B. The constant of the spring is 12.5 lb/in., and the spring is un-stretched when AB and BC are horizontal. Neglecting the weight of the linkage,...
-
Sycamore Candy offers an MP3 download (seven-single medley) as a premium for every five candy bar wrappers presented by customers together with 2.50. The candy bars are sold by the company to...
-
Why can patterns be labeled experienced reuse?
-
1. Based on Guz, can the implied covenant of good faith and fair dealing apply to any conditions not actually stated in a contract? In other words, can the covenant apply to anything beyond that...
-
A gas molecule with a molecular mass of 44u has a speed of 337 m/s. What is the temperature of the gas molecule?
-
Cinder Inc. is a Canadian-controlled private corporation based in your province. The company operates a wholesale business. The following information is provided for its year ended May 31, 2020: 1....
-
Why does a company evaluate both the money allocated to a project and the time allocated to the project? How do these evaluations help with planning and business decisions? Give some examples.
-
HOW TO PROFIT FROM AN INVESTMENT (entire coverage) Profiting From An Investment: Income - entire coverage be able to explain what income means in the context of investing be able to cite 3 examples...
-
Identify if the statement is a goal, process objective, impact objective or outcome objective: By March 2019, there will be a 10% increase in the proportion of health insurance providers will offer...
-
Assuming that Casey and Michael do file a joint return, what are the tax consequences?
-
Ricky Falzano conducts business operating a waste removal service and has provided the following data in respect of the 2021/22 tax year: INCOME Gross Income $...
-
Britta utilizes multiple independent contractors in her drywall construction business; one of them neglects to provide her with the appropriate TIN. Accordingly, Britta must take backup income tax...
-
This is an individual major assignment using MS Excel. The purpose of this assignment is to give you some experience with several of the features of the Microsoft Excel spreadsheet. The breakdown...
-
Refer to the situation described inBE 18-13, but assume a 2-for-1 stock split instead of the 5% stock dividend. Prepare the journal entry to record the stock split if it is to be effected in the form...
-
Lowland Appliance replenishes its stock of 52-inch flat-screen TVs three times a year. Each order takes 1/9 of a year to arrive. Annual demand for these TVs follows a normal distribution with a mean...
-
Techware Incorporated is considering the introduction of two new software products to the market. In particular, the company has four options regarding these two proposed products: introduce neither...
-
We are all aware of the fierce competition by mobile phone service companies to get our business. For example, AT&T is always trying to attract Verizons customers, and vice versa. Some even give away...
-
A circular test track for cars in England has a circumference of 3.2 km. A car travels around the track from the southernmost point to the northernmost point. a. What distance does the car travel? b....
-
Loveland, Colorado, is 18 km due south of Fort Collins and 3 1 km due west of Greeley. What is the distance between Fort Collins and Greeley?
-
Blades of grass grow from the bottom, so, as growth occurs, the top of the blade moves upward. During the summer, when your lawn is growing quickly, estimate this speed, in m/s. Make this estimate...
Study smarter with the SolutionInn App