Western wood products has two production departments

Assignment Help Accounting Basics

Reference no: EM13482108

Western Wood Products has two production departments: cutting and assembly. The company has been using a single predetermined cost driver rate based on plantwide direct labor hours. That is, the plantwide cost driver rate is computed by dividing plantwide support costs by total plantwide direct labor hours. The estimates for support costs and quantities of cost drivers for 2006 follow:

______________________ Cutting______Assebmly_____________Total____________

Manufacturingsupport $25,000 $35,000 $60,000

Direct labor hours 1,000 3,000 4,000

Machinehours 4,000 2,000 6,000

a. What was the singleplantwide cost driver rate for 2006?

b. Determine departmental costdriver rates based on direct labor hours for assembly and machinehours for cutting.

c. Provide reasons why Western Woodmight use the method in (a) or in (b).

Reference no: EM13482108

Questions Cloud

They also have three phone lines that allow them to : amanda and chris mcdermott own a small business plastic dollars which produces and maintains stored value cards for

Journalize sales collections write-offs of uncollectibles : goole party planners had a 40000 balance in accountsreceivable and a 3000 credit balance in allowance for uncollectible

Ab and c are partners with capital balances of 50000 30000 : ab and c are partners with capital balances of 50000 30000 and 20000 and who share in the profit and loss of the abc

Determine the materials price and quantity variances for : one of the products of hearts amp flowers is a one-pound boxof chocolate candy packaged in a box bearing the

Western wood products has two production departments : western wood products has two production departments cutting and assembly. the company has been using a single

Direct materials used 29000 direct labor 17000 variable : company has no beginning and ending inventories and reports the following information aboutits only product direct

Ignoring income taxes compute the amount of loss if any to : 24800 were incurred in connection with the issue. interest on the bonds is payable annually each december 31. the 24800

What is the actual wage rate per hour compute the labor : a popular product of loring glassworks is a hand-decorated vase.the companys standard cost system calls for .75 hours

A company estimates the cost of its physical inventory at : a company estimates the cost of its physical inventory at nov. 30 for use in an interim financial statement. managemnt

User Account

All Pages