Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Q1) Erte, Inc., produces two models of high pressure steam valves, XR7 model and ZD5 model. Data regarding two products follow:

 

 

Products Direct labor-hours Annual production Total Direct labor-hours
XR7 0.2 DLHs per unit 20,000 units 4,000 DLHs
ZD5 0.4 DLHs per unit 40,000 units 16,000 DLHs
      20,000 DLHs

Extra information about company follows:

a. Product XR7 requires $35 in direct materials per unit, and product ZD5 needs $25.

b. Direct labor rate is $20 per hour.

c. Company has always used direct labor-hours as base for applying manufacturing overhead cost to products. Manufacturing overhead totals $1,480,000 per year.

d. Product XR7 is more complex to produce than product ZD5 and needs use of special milling machine.

e. As of special work required in (d) above, company is thinking of the use of activity-based costing to apply overhead cost to products. Three activity cost pools have been recognized and first-stage allocations have been completed. Data concerning these activity cost pools appear below:

Suppose that company continues to use direct labor-hours as bas for applying overhead cost to products.

find out predetermined overhead rate.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M918313

Have any Question? 


Related Questions in Accounting Basics

Case title subsequent events - disclosure or financial

Case Title: Subsequent Events - Disclosure or Financial Statement Adjustment? Company ABC is a December 31 calendar year-end manufacturer of flammable liquids and powders with its corporate offices in Pennsylvania and ma ...

A taxpayer lives in michigan in a controversy with the irs

A taxpayer lives in Michigan. In a controversy with the IRS, the taxpayer loses at the trial court level. Describe the appeal procedure for each of the following trial courts. a. Small Cases Division of the Tax Court b. ...

A are the amounts at which fixed assets are reported in the

A. Are the amounts at which fixed assets are reported in the balance sheet their approximate market values as of the balance sheet date? Discuss. B. (a) Under what conditions is the use of an accelerated depreciation met ...

Common-size balance sheet of michael hill international ltd

Common-size Balance Sheet of Michael Hill International Ltd for the years 2014 and 2015: Particulars 2015   $000 % of total 2014    $000 % of total ASSETS         Current assets         Cash and cash equivalents 6797 1.9 ...

Module- slpaccounting cost systems and cost behavioryou are

Module- SLP ACCOUNTING COST SYSTEMS AND COST BEHAVIOR You are applying for a managerial position at an innovative and rapidly growing company. This is a dynamic company that wants an individual who adds value to the orga ...

Practice questionsdescribe a situation in which two of the

Practice questions: Describe a situation in which two of the main accounting concepts might be in conflict. Explain what you consider the correct accounting treatment should be.

Practice questionsdescribe what is meant by the term cost

Practice questions: Describe what is meant by the term cost of goods sold and the importance of the calculation in arriving at a figure of gross profit. Answer should be illustrated with a worked example.

A taxpayer lives in michigan in a controversy with the irs

A taxpayer lives in Michigan. In a controversy with the IRS, the taxpayer loses at the trial court level. Describe the appeal procedure for each of the following trial courts: a. Small Cases Division of the U.S. Tax Cour ...

Accounting amp the regulatory environmentin the wake of the

Accounting & The Regulatory Environment In the wake of the accounting and finance scandals of the early 2000s, the regulatory environment for businesses changed dramatically to create more accountability and transparency ...

Question list the penalties imposed on the employer for the

Question: List the penalties imposed on the employer for the following: a. Filing Form 941 late. b. Seven days late making a deposit. c. Issuing a bad check to the IRS.

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate