Landis Company uses a job-order costing system with a predetermined plantwide overhead rate based on direct...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Landis Company uses a job-order costing system with a predetermined plantwide overhead rate based on direct labor-hours. In an effort to improve its ability to measure job profitability and make decisions, the company is considering allocating some of its overhead costs, such as electrical costs, based on machine-hours Instead of direct labor-hours. To further explore the potential benefits of this approach, the company has gathered the following eight weeks of actual (not estimated) data with respect to its electrical costs: Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Total Machine-Hours Direct Labor-Hours 7,700 8,900 8,600 8,100 7,600 7,100 5,500 6,800 60,300 Total for eight weeks (a) 52 weeks + 8 weeks (b) Annual estimate (a) x (b) Using the data above, the company translated these actual amounts into annual estimates as follows: Electrical Costs $ 607,300 6.5 $3,947,450 Req 1 8,910 8,920 8,870 8,840 8,990 8,940 8,870 8,910 71,250 Req 2 Electrical Costs $ 76,200 83,800 81,000 80,800 79,480 70,700 61,500 73,900 $607,300 Click here to download the Excel template, which you will use to answer Requirements 4. 5 and 6. Click here for a brief tutorial on Regression Analysis in Excel. Machine-Hours Direct Labor-Hours 60,300 6.5 391,950 Required: 1. Using the annualized data, what is the estimated electrical cost per direct labor-hour? 2. Using the annualized data, what is the estimated electrical cost per machine-hour? The estimated electrical cost per direct labor-hour is 71,250 6.5 463,125 Complete this question by entering your answers in the tabs below. Using the annualized data, what is the estimated electrical cost per direct labor-hour? (Round your answer to two decimal places.) Required: 1. Using the annualized data, what is the estimated electrical cost per direct labor-hour? 2. Using the annualized data, what is the estimated electrical cost per machine-hour? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Using the annualized data, what is the estimated electrical cost per machine-hour? (Round your answer to two decimal places.) The estimated electrical cost per machine-hour is Landis Company uses a job-order costing system with a predetermined plantwide overhead rate based on direct labor-hours. In an effort to improve its ability to measure job profitability and make decisions, the company is considering allocating some of its overhead costs, such as electrical costs, based on machine-hours Instead of direct labor-hours. To further explore the potential benefits of this approach, the company has gathered the following eight weeks of actual (not estimated) data with respect to its electrical costs: Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Total Machine-Hours Direct Labor-Hours 7,700 8,900 8,600 8,100 7,600 7,100 5,500 6,800 60,300 Total for eight weeks (a) 52 weeks + 8 weeks (b) Annual estimate (a) x (b) Using the data above, the company translated these actual amounts into annual estimates as follows: Electrical Costs $ 607,300 6.5 $3,947,450 Req 1 8,910 8,920 8,870 8,840 8,990 8,940 8,870 8,910 71,250 Req 2 Electrical Costs $ 76,200 83,800 81,000 80,800 79,480 70,700 61,500 73,900 $607,300 Click here to download the Excel template, which you will use to answer Requirements 4. 5 and 6. Click here for a brief tutorial on Regression Analysis in Excel. Machine-Hours Direct Labor-Hours 60,300 6.5 391,950 Required: 1. Using the annualized data, what is the estimated electrical cost per direct labor-hour? 2. Using the annualized data, what is the estimated electrical cost per machine-hour? The estimated electrical cost per direct labor-hour is 71,250 6.5 463,125 Complete this question by entering your answers in the tabs below. Using the annualized data, what is the estimated electrical cost per direct labor-hour? (Round your answer to two decimal places.) Required: 1. Using the annualized data, what is the estimated electrical cost per direct labor-hour? 2. Using the annualized data, what is the estimated electrical cost per machine-hour? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Using the annualized data, what is the estimated electrical cost per machine-hour? (Round your answer to two decimal places.) The estimated electrical cost per machine-hour is
Expert Answer:
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
The Brinker Company uses a job order costing system at its local plant. The plant has a machining department and a finishing department. The company uses machine hours to allocate machining...
-
The Gonzalez Company uses a job order costing system at its plant in Green Bay, Wisconsin. The plant has a machining department and a finishing department. The company uses two cost driver rates for...
-
1) CWN Company uses a job order costing system and last period incurred $90,000 of actual overhead and $100,000 of direct labor. CWN estimates that its overhead next period will be $65,000. It also...
-
This project requires the use of a Windows, Linux, or Mac computer that has Internet access. Using methods you learned in this chapter, find the answers to the following questions: 1 1 How is an IP...
-
Discuss the potential aggravations you might face as a student as a result of your university using a flat-file data management environment, that is, different files for the registrar, library,...
-
The McIntyre Resort (MR), which is privately owned, is a world-famous luxury hotel and golf complex. It has been chosen as the venue to stage The Robyn Cup, a golf tournament which is contested by...
-
Calculate the PRESS statistic for the model developed from the estimation data in Problem 11.2. How well is the model likely to predict? Compare this indication of predictive performance with the...
-
1. What are the communication errors Samuel made? 2. What should Angelique do when she gets the phone call from Penny asking her to come to Dallas to meet with Samuel? 3. Is there anything more...
-
The Smith family is moving to Little Rock because of a job relocation. They decide to purchase a home near Ms. Smith's office which is in a part of town that was established in the mid-1980's. When...
-
The plant can make two products, P and Q. Max demand for P= 100 units/week; Max demand for Q = 50 units/week. Four workers, A, B, C, and D, with non-interchangeable skills. Fixed operating expense =...
-
Preferred dividends In each case in the following table, 1 how many dollars of preferred dividends per share must be paid to preferred stockholders before common stock dividends are paid? The amount...
-
Briefly explain the difference between a dependent variable and an independent variable in regression analysis.
-
What is a sample? What is a population? Briefly explain how a sample can be used to estimate population parameters.
-
Briefly explain what the slope of a regression line tells us.
-
Explain whether you would expect a positive relationship, a negative relationship, or no relationship to exist for the following pairs of data. If you think there is a relationship, identify the...
-
Explain the difference between the coefficient of determination and the adjusted coefficient of determination. Which do you believe provides a better measure of the goodness of fit of a regression?
-
Swim coach Rob teaches athletes how to swim freestyle while keeping their hips raised. Let q represent the number of swimmers that learn the technique, and let h represent the number of hours of...
-
On 1 July 2018, Parent Ltd acquired all the shares of Son Ltd, on a cum-div. basis, for $2,057,000. At this date, the equity of Son Ltd consisted of: $ 1,000,000 Share capital 500 000 shares...
-
Define the following terms: (a) cost behavior and (b) relevant range.
-
The management of Kunkel Company is considering the purchase of a $40,000 machine that would reduce operating costs by $7,000 per year. At the end of the machines eight-year useful life, it will have...
-
Refer to the data for Foam Products, Inc., in Exercise 812 and the following additional details concerning the activity rates in the activity-based costing system: Management has provided their ease...
-
A diver leaps from a high platform, speeds up as she falls, and then slows to a stop in the water. How do you define the system so that the energy changes are all transformations internal to an...
-
When your hands are cold, you can rub them together to warm them. Explain the energy transformations that make this possible.
-
Figure Q10.24 shows a potential-energy diagram for a particle. The particle is at rest at point A and is then given a slight nudge to the right. Describe the subsequent motion. FIGURE Q10.24 Energy...
Study smarter with the SolutionInn App