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28 Nov 2019

A company's planned activity level for next year is expected to be 200,000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs:Variable FixedIndirect materials $280,000 Depreciation $120,000Indirect labor 400,000 Taxes 20,000Factory supplies 40,000 Supervision 100,000A flexible budget prepared at the 160,000 machine hours level of activity would show total manufacturing overhead costs of$816,000.$768,000.$576,000.$720,000.

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Sixta KovacekLv2
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Related questions

A company's plannedactivity level for next year is expected to be 200,000 machinehours. At this level of activity, the company budgeted thefollowing manufacturing overhead costs:

Variable Fixed

Indirect materials$280,000 Depreciation $120,000

Indirect labor 400,000Taxes 20,000

Factory supplies 40,000Supervision 100,000

A flexible budget preparedat the 160,000 machine hours level of activity would show totalmanufacturing overhead costs of

a. $576,000.

b. $720,000.

c. $768,000.

d. $816,000.

A company developed thefollowing per-unit standards for its product: 2 pounds of directmaterials at $4 per pound. Last month, 1,500 pounds of directmaterials were purchased for $5,700. The direct materials pricevariance for last month was

a. $5,700favorable.

b. $300favorable.

c. $150favorable.

d. $300unfavorable.

A company budgeted unitsales of 204,000 units for January, 2013 and 240,000 units forFebruary, 2013. The company has a policy of having an inventory ofunits on hand at the end of each month equal to 30% of next month'sbudgeted unit sales. If there were 61,200 units of inventory onhand on December 31, 2013, how many units should be produced inJanuary, 2013 in order for the company to meet itsgoals?

a. 214,800 units

b. 204,000 units

c. 193,200 units

d. 276,000 units

In the month of June, adepartment had 20,000 units in beginning work in process that were70% complete. During June, 80,000 units were transferred intoproduction from another department. At the end of June there were10,000 units in ending work in process that were 40% complete.Materials are added at the beginning of the process, whileconversion costs are incurred uniformly throughout the process. Theequivalent units of production for materials for Junewere

a. 90,000 equivalentunits.

b. 100,000 equivalentunits.

c. 104,000 equivalentunits.

d. 80,000 equivalentunits.

Mah, Inc. completed JobNo. B14 during 2013. The job cost sheet listed thefollowing:

Direct materials$55,000

Direct labor$30,000

Manufacturing overheadapplied $20,000

Units produced 3,000units

Units sold 1,800units

How much is the cost ofthe finished goods on hand from this job?

a. $105,000

b. $63,000

c. $42,000

d. $51,000

WORK NEEDS TO BE SHOWN!!!

Consider the following information from Grantham Company,then see the instructions that

follow.

Grantham Company manufactures dog whistles. The followinginformation is available from

the budgetary control system for 2016, and was used to createthe master budget. Grantham

applies overhead using an activity index of direct laborhours.

Variable Costs

Rate per direct labor hour

Indirect labor

$0.52

Indirect materials

0.36

Factory utilities

0.88

Factory repairs

0.48

Fixed Costs

Amount per year

Depreciation

$25,300

Insurance

9,300

Property taxes

5,800

Supervision

61,500

The master overhead budget was prepared with the expectationthat 462,000 direct labor

hours would be worked during the year. In August, 39,500 directlabor hours were worked.

At that level of activity, actual costs were as shown below:

Variable Costs

Indirect labor

$0.54

per labor hour

Indirect materials

0.34

per labor hour

Factory utilities

0.91

per labor hour

Factory repairs

0.53

per labor hour

Fixed Costs

Depreciation

$2,108

Insurance

825

Property taxes

500

Supervision

5,250

Instructions:

Prepare a monthly manufacturing overhead flexible budget,assuming production levels

ranging from 30,000 to 45,000 direct labor hours, in incrementsof 5,000.

Prepare a budget report for August comparing actual results tothe flexible budget. Explain

whether costs were successfully controlled and how you cantell.

THIS ASSIGNMENT MUST BE COMPLETED IN EXCEL. You should developan efficient and

customizable production cost report, using formulas wheneverpossible instead of keyed in

values. No numeric values except the ones shown above shouldneed to be keyed in.

Alake Company is a manufacturing firm that uses job-ordercosting. At the beginning of the year, the company's inventorybalances were as follows:

Raw materials$19,000

Work in process$82,000

Finished goods$32,000

The company applies overhead to jobs using a predeterminedoverhead rate based on machine-hours. At the beginning of the year,the company estimated (budget) that it would work 40,000machine-hours and incur $280,000 in manufacturing overhead cost(predetermined overhead rate). The following transactions wererecorded for the year:

a.Raw materials were purchased, $400,000.

b. Raw materials were requisitioned for use in production,$450,000 ($20,000 indirect).

c. The following employee costs were incurred: direct labor,$230,000; indirect labor, $65,000; and administrative salaries,$117,000.

d. Selling costs, $120,000.

e. Factory utility costs, $48,000.

f. Depreciation for the year was $150,000 of which $130,000 isrelated to factory operations and $20,000 is related to selling,general, and administrative activities.

g. Manufacturing overhead was applied to jobs. The actual levelof activity for the year was 38,000 machine-hours.

h.The cost of goods manufactured (completed) for the year was$800,000.

i. Sales for the year totaled $1,200,000 and the costs on thejob cost sheets of the goods that were sold totaled $900,000.

j. The balance in the Manufacturing Overhead account was closedout to Cost of Goods Sold. Show a "T" Account to calculate theover/under applied overhead.

Required: Prepare the appropriate journal entryfor each of the items above (a. through j. รขย€ย” one journalfor each item - TEN JOURNALS). You can assume that alltransactions with employees, customers, and suppliers wereconducted onaccount or credit.

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