Determine amount of overhead assigned to each product line

Assignment Help Managerial Accounting
Reference no: EM133124706

Question - Rawlings Corp. has two product lines, A and B. Rawlings has identified the following information about its overhead and potential cost drivers:

Total overhead $112,500

Cost Drivers

Number of labor hours 2,500

Number of machine hours 59,800

1. Suppose the Rawlings Corp. uses a traditional costing system with number of labor hours as the cost driver. Determine the amount of overhead assigned to each product line if Product A requires 70% of the labor hours and Product B requires 30%.

2. Suppose Rawlings uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line if Product A consumes 22,100 machine hours and Product B consumes 37,700.

Reference no: EM133124706

Questions Cloud

Process of turning sugar into candy canes : For a company that produces candy canes, sugar is 70 percent of its ingredient costs. The United States limits the imports of sugar to protect cane farmers, whi
Calculate the total effect on welfare of a tariff : A small country can import a good at a world price of 5 per unit. The domestic supply curve of the good is S = 10 + 10P. The demand curve is D = 600 - 5P. In ad
SENG6110 Object Oriented Programming Assignment : SENG6110 Object Oriented Programming Assignment Help and Solution, The University of Newcastle - Assessment Writing Service
Find the optimum replacement interval for equipment : A tractor can be purchased for $45,000. Annual O&M costs are expected to increase $1,500 every year, with a 1st year O&M cost of $3,000.
Determine amount of overhead assigned to each product line : Determine the amount of overhead assigned to each product line if Product A requires 70% of the labor hours and Product B requires 30%
Pw analysis and cash flow approach : A regional architecture/contractor firm, purchased an HVAC unit for $25,000 that was expected to last 15 years. It has a salvage value of $0 in 10 more years.
Explain moral hazard in credit markets : Explain how moral hazard in credit markets lead to credit rationing.
Why sharecropping contracts may be preferred : Briefly discuss why sharecropping contracts may be preferred over rent contracts in developing countries. Is there any empirical evidence that this takes place?
What is the amount to be capitalized as cost of the machine : The cash equivalent price of machine was P950,000 inclusive of incurred and paid installation costs amounting to P30,000. What is amount to be capitalized

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Determine the net income or net loss for January

Recorded fees earned on plans delivered, payment to be received in February, $31,400. Determine the net income or net loss for January

  Calculate ev of launch with product and market test

Calculate EV of launch with product and market test? Calculate EV of launch with product test? Calculate EV of launch without test?

  Determine the equivalent units for direct materials

Determine the equivalent units for direct materials? Freddie Company adds direct materials at the beginning of the process and adds conversion costs

  Determine the cost of jobs completed in february

Determine the cost of jobs completed in February. Amy prints brochures for clients and uses job costing. She applies her overhead costs to jobs each month

  What is equivalent to receiving amount today

What is equivalent to receiving amount today?If the interest rate is 8%, if were to receive $10,000 in years time is equivalent to receiving what amount today?

  Why delta energy had a negative cash flow last year

Which of the following factors could explain why Delta energy had a negative cash flow last year even though the cash on its balance sheet increased?

  What do observe in the linear trends

What do you observe in the linear trends (i.e., are values increasing) What would be your next steps in completing a thorough analysis of the trends?

  Assume that your companys sales staff provides information

assume that your companys sales staff provides information on expected sales and selling prices for items making up the

  Prepare journal entries for manufacturing cost

Prepare separate journal entries for each type of manufacturing cost - During January, its first month of operations, Knox Company accumulated the following manufacturing cost

  Compute actual hours used to apply overhead in november

Income BEFORE the overhead adjustment = $797,000. Income AFTER the overhead adjustment = $785,000. Compute actual hours used to apply overhead in November

  Calculate profit and the value of ending inventory

Explain why, using variable costing, profit does not fluctuate from year to year.

  Make an estimated income statement in absorption costing

Make an estimated income statement in absorption costing form for November for aloe vera hand lotion, assuming that production continues

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!

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