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1. Whippany manufacturing wants to estimate costs for each product they produce at its Troy plant. The Troy plant produces three products at this plant, and runs two flexible assembly lines. Each assembly line can produce all three products. Classify each of the following costs as either ; a) Direct or indirect costs for each product. b) Fixed or variable with respect to the number of units produced of each product. Each question carries 1mark. (5Marks)
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2. The Alex Miller Corporation operates one central plant that has two divisions, the Flashlight Division and the Night Light Division. The following data apply to the coming budget year: Budgeted costs of the operating the plant for 10,000 to 20,000 hours: Fixed operating costs per year $280,000 Variable operating costs $10 per hour Practical capacity 20,000 hours per year Budgeted long-run usage per year: Lamp Division 800 hours × 12 months = 9,600 hours per year Flashlight Division 450 hours × 12 months = 5,400 hours per year Assume that practical capacity is used to calculate the allocation rates. Further assume that actual usage of the Lamp Division was 700 hours and the Flashlight Division was 400 hours for the month of June. Required: a. Determine the operating cost that will be budgeted for the lamp and flash light division each month using single rate cost allocation method.(4Marks) b. For the month of June, if a single-rate cost-allocation method is used, what amount of cost will be allocated to the Lamp Division? To the Flashlight Division? Assume actual usage is used to allocate operating costs. (2marks) Each step carries 1 mark. |
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3. Classic Products Company manufactures colonial style desks. Some of the company's data was misplaced. Use the following information to replace the lost data: :(6Marks)
Determine the following: Each question carries 1 mark a. Flexible-budget revenues (A)? b. Static-budget revenues (B)? c. Actual variable costs (C)? d. Total flexible-budget variance (D)? e. Total sales-volume variance (E)? f. Total static-budget variance? |
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4. Hill Manufacturing uses departmental cost driver rates to apply manufacturing overhead costs to products. Manufacturing overhead costs are applied on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 2018, the following estimates were provided for the coming year: Machining Assembly Direct labor-hours 10,000 dlh 90,000 dlh Machine-hours 100,000 mh 5,000 mh Direct labor cost $ 80,000 $720,000 Manufacturing overhead costs $250,000 $360,000 The accounting records of the company show the following data for Job #846: Machining Assembly Direct labor-hours 50 dlh 120 dlh Machine-hours 170 mh 10 mh Direct material cost $2,700 $1,600 Direct labor cost $ 400 $ 900 Required: a. Compute the manufacturing overhead allocation rate for each department. (2Marks) b. Compute the total cost of Job #846.(2Marks) |