User Account

All Pages

Compute the predetermined overhead rate

Assignment Help Auditing
Reference no: EM133067857

Question - Speed Demon Inc. manufactures two products: speedometers and odometers. During the month, it produced 2,000 speedometers and 3,000 odometers and incurred estimated overhead costs of $45,300. This month, the company incurred the following:

 

Speedometers

Odometers

Machine Hours

750

1,000

Labour Hours

1,200

800

Labor Cost

$12,000

$18,000

Management is considering implementing activity-based costing. An analysis of estimated overhead costs reveals the following activities:

Activity

Overhead Cost

Allocation Base

Expected Activity

Speedometers

Odometers

Materials Handling

$18,000

# of requisitions

400

600

Machine Set-Ups

$12,600

# of set-ups

150

300

Inspections

$14,700

# of inspections

200

400

The company currently allocates overhead based on direct labor hours.

Required -

1) Compute the predetermined overhead rate using machine hours as the basis for allocating overhead costs to products.

2) What is the total overhead allocated to odometers using the current(direct labor hours) costing system?

3) What is the per unit cost of odometers using the current (direct labor hours) costing system? Round answer to two decimal places.

4) Compute the activity rate for each of the activity cost pools.

5) What is the total overhead allocated to odometers using activity-based costing?

Reference no: EM133067857

Questions Cloud

Determining the expected future spot exchange rate : Problem: Suppose that the participants in the foreign exchange market know the interest rates for all maturities and have reliable forecasts for inflation rates
Scholarly Activity Management : List and describe internal (online) information security risks and mitigation tactics and how they will affect decision-making strategies.
Calculate the net income percent before taxes : Depreciation and amortization expenses 15,000, Other operating expenses 48,000 and Income Taxes 18,300. Calculate the net income percent before taxes
Calculate pv-ac-ev-sv and cv : You have a project to build a new fence. The fence is a four sided square. Each side is to take one day to build and is budgeted for $1,000 per side.
Compute the predetermined overhead rate : Compute the predetermined overhead rate using machine hours as the basis for allocating overhead costs to products
Main traits associated with leaders : Choose one of the main traits associated with leaders. How can it be developed? Demonstrated to others?
Communication tactics : What are the other factors to be considered before communication tactics are implemented?
Company view on corporate social responsibility : Research your present or past company's view on corporate social responsibility.
Calculate sammy share of charitable contributions : Sammy is a 45% Zebra shareholder throughout the year. Calculate Sammy's share of charitable contributions, if any

Reviews

Write a Review

Auditing Questions & Answers

  Evaluate whether management''s plans

1.Callie Peters is completing the audit of Making New Friends.com for the year ended December 31, 2013.

  How sec has influence over audit of smackey dog foods inc

Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc. Discuss the essential activities involved in the initial planning of an audit. How do these all specifically to the Smackey Dog Food client?

  Critical thinking skills and higher order application

Understand the audit planning procedures, evaluate the business risk and assess the internal control and Prepare auditing procedures for transactions.

  What are the benefits of audit planning

Identify applicable ethical considerations in accepting a new audit engagement and Discuss the contention that the engagement letter understates the auditor's

  Why auditors may need to reassess materiality

Explain why auditors may need to reassess materiality as the audit progresses and discuss the advantages and disadvantages of a joint audit being performed on the financial statements of Hadi Company.

  Describe the four phases of an audit

Describe the four phases of an audit and discuss the key factors that would help you determine how to plan the audit for this company.

  Audit report of california water services group

Obtain a 10-k report and an annual report for a public company (this may be in electronic form and/or hard copy form). Be sure that the 10-k report and the annual report are for the same fiscal year.

  What should belinda do

What should Belinda do? Use the Code of Ethics for Professional Accountants and the American Accounting Association (AAA) Model to help consider your response to this question.

  Describe a specific audit risk that could arise

In relation to the purchasing of equipment and spare parts, describe two business risks to MSL that Crampton and Hasaad will consider in planning the 2015 audit.

  The independence of the internal audit department

The operational auditor's independence is most likely to be compromised when the internal audit department is responsible directly

  What are the pros and cons of using the strategic audit

What are the pros and cons of using the strategic audit as a framework for case analysis? Choose one section of the case analysis discussed and apply this to Wal-Mart

  How to compute translational rotational vibrational

How to compute the translational rotational vibrational electronic

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd