Homework Answers
1.
| Activity | Expected Costs |
| Handling materials | 625,000 |
| Inspecting product | 900,000 |
| Processing purchase orders | 105,000 |
| Paying suppliers | 175,000 |
| Insuring the factory | 300,000 |
| Designing packaging | 75,000 |
| Total Cost | $2,180,000 |
Total estimated manufacturing overhead = $2,180,000
Estimated direct labor hours = 125,000
Plantwide overhead rate = Total estimated cost/Estimated direct labor hours
= 2,180,000/125,000
= $17.44 per direct labor hour
2.
| Total DL Hours required | Plantwide OH Rate | Total Overhead Cost | |
| Deluxe model | 2,500 | 17.44 | $43,600 |
| Basic model | 6,000 | 17.44 | $104,640 |
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Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go- karts: Deluxe and Basic. Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected Costs $695,000 970,000 175,000 245,000 370,000 145,000 Expected Activity 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models Required: 1. Compute a single plantwide overhead rate for the year, assuming that the company assigns overhead based...
Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go- karts: Deluxe and Basic. Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected Costs $720,000 995,000 200,000 270,000 395,000 170,000 Expected Activity 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models Required: 1. Compute a single plantwide overhead rate for the year, assuming that the company assigns overhead based...
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Xie Company identified the following activities, costs, and activity drivers for 2017. The company manufactures two types of go-karts: Deluxe and Basic Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected Costs $625,000 900,000 105,000 175,000 300,000 75,000 Expected Activity 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models References Required: 1. Compute a single plantwide overhead rate, assuming that the company assigns overhead based on 125,000 budgeted direct...
Xie Company identified the following activities, costs, and activity drivers for 2015. The company manufactures two types of go-karts: Deluxe and Basic. Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected Cost $ 625,000 900,000 105,000 175,000 300,000 75,000 Expected Activity 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models Required: 1. Compute a single plantwide overhead rate assuming that the company assigns overhead based on 125,000 budgeted direct...
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