Reference no: EM131762440
1. XYZ Company uses budgeted overhead rates to apply overhead to individual jobs. It uses a system based on machine hours. Last year, the company made the following estimates for this year.
Direct labor costs $15,000,000
Factory overhead costs $18,500,000
Direct Labor Hours $500,000
Machine Hours $1,000,000
(a) What is the budgeted overhead rate for the company? (Show your work)
(b) If Job #33133 had the costs listed below, what would be the total cost of Job #33133? (Show your work)
Material costs were $600,000;
Direct labor costs were $750,000;
Direct labor hours were 20,000; and
Machine hours were 22,000.
Question 2. James Company uses process costing to track its costs in two sequential production departments: Forming and Finishing. The following information is provided regarding the Forming Department:
Forming Department
Month Ended June 30
Unit information
Beginning work in process, June 1 --- 4,000
Started into production during June --- 22,000
Completed and transferred to Finished Department during June --- 20,000
Ending work in process, June 30 (20% complete as to direct materials and 50% complete as to conversion costs) --- 6,000
Cost information:
Beginning work in process as of June 1 consists of $1,000 of direct materials costs and $4,500 of conversion costs --- $5,500
Direct materials used in June --- $7,268
Conversion costs incurred in June --- $32,990
Required:
(a) Calculate the equivalent units for direct materials. (Show your work)
(b) Calculate the cost per equivalent unit for direct materials. (Show your work)
Question 3. Classify each of the costs below within the ABC costing hierarchy as either unit-level, batch-level, product-level, or facility-level.
(a) Cost to inspect each product as it is finished
(b) Factory depreciation
(c) Machine setup
(d) Costs to hire human resource personnel
(e) Salary for a product-line manager
(f) Receiving raw materials from vendors
Question 4. Bryant Company incurred costs of $50,000 for direct materials (raw) purchased. Direct labor was $60,000 and factory overhead was $35,000 for May.
Inventories were as follows:
Raw materials beginning $14,000; raw materials ending $10,000
Work-in-process beginning $24,000; work-in-process ending $36,000
Finished goods beginning $10,000; finished goods ending $25,000
Required: Calculate the cost of goods manufactured for May for Bryant Company. You need to show your work.