Reference no: EM132595815
Questions -
Q1. Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $480,000 of indirect costs. The bankwide rate could be based on either direct labor hours (DLH) or the number of loans processed. The departmental rates would be based on direct labor hours for Consumer Loans and a dual rate based on direct labor hours and the number of loans processed for Commercial Loans. The following information was gathered for the upcoming period:
|
Department
|
DLH
|
Loans Processed
|
Direct Costs
|
|
Consumer
|
18,000
|
750
|
290,000
|
|
Commercial
|
6,000
|
250
|
170,000
|
If Banc Corp. Trust uses a bankwide rate based on direct labor hours, what would be the indirect costs allocated to the Consumer Department?
Q2. Jackson Company uses a standard cost system. The following information pertains to direct labor for product B for the month of October:
Standard hours allowed for actual production 2,450
Actual rate paid per hour $ 8.30
Standard rate per hour $ 7.90
Labor efficiency variance $ 1,185 U
What were the actual hours worked for the month of October?
Q3. In 2020, Evans Corporation had an operating profit of $776,000 and a residual income of $313,000. If Evans' cost of capital is 10%, what is the amount of the invested capital?
Q4. Given the following information for Camping Division:
Selling price to outside customers $ 60
Variable cost per unit $ 33
Total fixed costs $ 462,000
Capacity in units 33,000
The Lantern Division would like to purchase internally from the Camping Division. The Lantern Division now purchases 6,000 units each period from outside suppliers at $58 per unit. The Camping Division has ample excess capacity to handle all of the Lantern Division's needs. What is the lowest price that the Camping Division could accept?