Compute the projected costs and the overhead rate for this

Reference no: EM13602742

Lund Products, Inc., uses a predetermined overhead rate in its production, assembly, and testing departments. One rate is used for the entire company; it is based on machine hours. The rate is determined by analyzing data from the previous year to determine the percentage change in costs. Thus this year's overhead rate will be based on the percentage change multiplied by last year's costs. Lise Jensen is about to compute the rate for this year using the following data from last years costs: Machine hours - 41,800 Overhead costs, indirect materials $57,850; indirect labor $25,440; supervision, $41,580; utilities $11,280' labor-related costs, $9,020; depreciation - factory, $10,780; depreciation - machinery, $27,240; Pproperty taxes, $2880; Insurance, $1,920; Mis. overhead, $4,840. Total Overhead = $192,830

This year the cost of indirect materials is expect to increase by 30% over the previous year... The cost of indirect labor, utilities, machinery depreciation, property taxes, and insurance is expected to increase by 20% over the previous year. All other expenses are expected to increase by 10% over the previous year. Machine hours for this year are estimated at 45,980.

Compute the projected costs and the overhead rate for this year using the information about expected cost increase (round your answer to three decimal places)

Reference no: EM13602742

Questions Cloud

Marquita filters produces an air filter for use in jet : marquita filters produces an air filter for use in jet aircraft. parts are added at several points in the production

Case study -narda corporation agreed to sell all of its : case study -narda corporation agreed to sell all of its capital stock to effie corporation for three monthly payments

Proton company which begin operations in 2009 invests its : proton company which begin operations in 2009 invests its idle cash in trading securities. the following transactions

Landess corporation currently has 120000 shares outstanding : landess corporation currently has 120000 shares outstanding of 10 par value common stock. the stock was originally

Compute the projected costs and the overhead rate for this : lund products inc. uses a predetermined overhead rate in its production assembly and testing departments. one rate is

The andrew jackson corporation a manufacturer of the : the andrew jackson corporation a manufacturer of the hickory walking sticks made of hickory gathered the following

If the liabilities of a company increased 92000 during a : if the liabilities of a company increased 92000 during a period of time and equity in the business decreased 30000

The new equipment will cost 1000000 will provide annual : abc inc. is considering investing in new equipment for the manufacture of blue ink. the new equipment will cost 1000000

Compute the effect on firm-wide income if 40000 components : the adam division produces a component that is used by the west division. the cost of manufacturing the component is as

User Account

All Pages