Compute the predetermined overhead rate under current method

Assignment Help Financial Accounting

Reference no: EM13863793

Cabigas Company manufactures two products. Product C and Product D. The company estimated it would incur $167,140 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor-hours. Data concerning the current period's operations appeal below: . Estimated volume for product C (2,000 units) . Estimated volume for Product D (2,700 units). Direct labor-hours per unit for Product C (2.00 hours), Direct labor -hours for Product D (0.80 hour). . Direct materials cost per unit for Product C ( $21.50), Direct materials cost per unit for Product D ($24.10) Direct labor cost per unit for Product C ($24.00) Direct labor cost per unit for Product D ($9.60) Required: Compute the predetermined overhead rate under the current method, and determine the unit product cost of each product for the current year.

Reference no: EM13863793

Questions Cloud

Effective interest method-how much interest expense : On 1/1/2014 the Jackson Co. has a $40,000 debt outstanding which matures on 12/31/16. Interest which is payable on Dec. 31 of each year, was last paid on 12/31/13. Using the effective interest method, how much interest expense is recognized on the ..

Where you can add value to others or customers : Topic - Drving for Results, Summarize where you self-handicap yourself and create obstacles in this area. Describe (with great detail) a situation where you can add value to others/customers

Revising the budgets to include all planning decisions : Regression analysis takes into consideration only the highest and the lowest level of activities to predict cost behavior. In a breakeven scatter diagram, the loss area continues till the total costs line is below total revenues line. Revising the bu..

The federal granting agency establishes : The federal granting agency establishes

Compute the predetermined overhead rate under current method : Cabigas Company manufactures two products. Product C and Product D. The company estimated it would incur $167,140 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor-ho..

Write paper about micromanaging : Topic - Micromanaging, Summarize where you self-handicap yourself and create obstacles in this area. Describe your results from the SLBA and its implications for you

Account referred to as the revaluation surplus account : Under IFRS, there exists an account referred to as the “revaluation surplus” account. What type of account is this and what is it used for? Is the normal account balance for this account a debit or credit? Can the account ever carry a balance that is..

Standard costing can used only with process costing system : Process cost reports are prepared for each of the processes or work cells. The number of equivalent units for direct materials is the same as the number for conversion costs. In a breakeven scatter diagram, the loss area continues till the total cost..

Transactions how reflected on the nba''s financial statements : To show how these transactions would be reflected on the NBA's financial statements

User Account

All Pages