ONLY NEED QUESTION "D", PROVIDED NUMBERS FOR REFERENCE

7 Quilts Made

Sheets used:

8 White

12 Yellow

14 Blue

Cost Variables

(***) = 573

(**) = 82

(*) = 41

A. The following production estimates were made for the coming year: Total quilts to be produced Total manufacturing hours available during the year Total direct laborers 20,000 2,000 3 Estimate for Year The following cost estimates were available at the beginning of the year. Use these estimates to determine total estimated manufacturing overhead during the year: * Use variables from above for the blanks: Production supervisor earns $3,800 per month $ Classroom rent is $ (***) per month Utilities cost $ (***) per quarter Pencils cost $2.00 with a useful life of 20 hours Scissors cost $ (**) with a useful life of 80 hours Rulers cost $ (*)_with a useful life of 50 hours Glue cost $ (*)_ cents per quilt Total Estimated Manufacturing Overhead $ 45,600.00 6,876.00 2,292.00 876.00 8,979.00 7,183.20 2.87 71,809.07 B. Calculate the Predetermined Overhead Rate (POHR) to be used during the year to allocate manufacturing overhead to jobs and Work In Process Inventory: $ A 35.90 per DLH C. Complete the following job cost sheet for your in-class job: Job Cost Sheet Direct Materials Sheets Total Cost per Sheet $ 2.00 $ 8 16.00 White material Blue material Yellow material 14 4.00 56.00 12 4.00 48.00 $ 120.00 Direct Labor Hours 0.40 0.40 Total 5.60 $ Rate per Hr. $ 14.00 12.00 16.00 Measuring labor Cutting labor Assembly Total 4.80 0.40 1.20 $ 16.80 Manufacturing Overhead Predetermined OH Rate $ DLH Used 1.20 $ Total 29.92 35.90 Total Job Cost Number of Quilts Cost per Quilt $ 166.72 7 $ 23.82 59.55 Overstated Overstated Answer the following questions: 1. If you decide to charge the bookstore cost plus 40% for the quilts, the selling price for one quilt is: Use your answers from #1 and the job cost sheet above to answer questions 2-5: 2. If you sold all but one of the quilts you made, total sales revenue would be: 3. If you sold all but one of the quilts you made, the cost of goods sold would be: 4. If you sold all but one of the quilts you made, finished goods inventory would be: 5. If you sold all but one of the quilts you made, your total gross profit would be: Use the following to answer questions 6-9: Assume you mistakenly treated the cost of production labor as a period cost (operating expense) and you sold all but one of the quilts you made (for the same price calculated in #1). What is resulting effect on the following financial statement elements? 6. Assets Select one: Understated 7. Cost of Goods Sold Select one: Understated 8. Gross Profit Select one Understated 9. Net Income Select one: Understated LO. Assume that during the year, your production workers actually worked a total of 6,250 hours. Manufacturing overhead allocated to all jobs during the year would be: Use your answer in #10 and the following information to answer questions 11 and 12: Assume that at year end it was determined that actual manufacturing overhead totaled $64,800 11. Manufacturing overhead would be: Select one: 12. By how much? Assume that the amount in #12 is not considered material and most of the quilts have been sold. 13. Which income statement account would be adjusted for the overallocated or underallocated overhead? Type complete name; no abbreviations or acronyms. 14. Would the account be increased or decreased? Select one: No Effect No Effect No Effect No Effect Overstated Overstated Overallocated Underallocated Enter account title: Increase Decrease A. The following production estimates were made for the coming year: Total quilts to be produced Total manufacturing hours available during the year Total direct laborers 20,000 2,000 3 Estimate for Year The following cost estimates were available at the beginning of the year. Use these estimates to determine total estimated manufacturing overhead during the year: * Use variables from above for the blanks: Production supervisor earns $3,800 per month $ Classroom rent is $ (***) per month Utilities cost $ (***) per quarter Pencils cost $2.00 with a useful life of 20 hours Scissors cost $ (**) with a useful life of 80 hours Rulers cost $ (*)_with a useful life of 50 hours Glue cost $ (*)_ cents per quilt Total Estimated Manufacturing Overhead $ 45,600.00 6,876.00 2,292.00 876.00 8,979.00 7,183.20 2.87 71,809.07 B. Calculate the Predetermined Overhead Rate (POHR) to be used during the year to allocate manufacturing overhead to jobs and Work In Process Inventory: $ A 35.90 per DLH C. Complete the following job cost sheet for your in-class job: Job Cost Sheet Direct Materials Sheets Total Cost per Sheet $ 2.00 $ 8 16.00 White material Blue material Yellow material 14 4.00 56.00 12 4.00 48.00 $ 120.00 Direct Labor Hours 0.40 0.40 Total 5.60 $ Rate per Hr. $ 14.00 12.00 16.00 Measuring labor Cutting labor Assembly Total 4.80 0.40 1.20 $ 16.80 Manufacturing Overhead Predetermined OH Rate $ DLH Used 1.20 $ Total 29.92 35.90 Total Job Cost Number of Quilts Cost per Quilt $ 166.72 7 $ 23.82 59.55 Overstated Overstated Answer the following questions: 1. If you decide to charge the bookstore cost plus 40% for the quilts, the selling price for one quilt is: Use your answers from #1 and the job cost sheet above to answer questions 2-5: 2. If you sold all but one of the quilts you made, total sales revenue would be: 3. If you sold all but one of the quilts you made, the cost of goods sold would be: 4. If you sold all but one of the quilts you made, finished goods inventory would be: 5. If you sold all but one of the quilts you made, your total gross profit would be: Use the following to answer questions 6-9: Assume you mistakenly treated the cost of production labor as a period cost (operating expense) and you sold all but one of the quilts you made (for the same price calculated in #1). What is resulting effect on the following financial statement elements? 6. Assets Select one: Understated 7. Cost of Goods Sold Select one: Understated 8. Gross Profit Select one Understated 9. Net Income Select one: Understated LO. Assume that during the year, your production workers actually worked a total of 6,250 hours. Manufacturing overhead allocated to all jobs during the year would be: Use your answer in #10 and the following information to answer questions 11 and 12: Assume that at year end it was determined that actual manufacturing overhead totaled $64,800 11. Manufacturing overhead would be: Select one: 12. By how much? Assume that the amount in #12 is not considered material and most of the quilts have been sold. 13. Which income statement account would be adjusted for the overallocated or underallocated overhead? Type complete name; no abbreviations or acronyms. 14. Would the account be increased or decreased? Select one: No Effect No Effect No Effect No Effect Overstated Overstated Overallocated Underallocated Enter account title: Increase Decrease