Oakwood Creations Company makes decorative candle pedestals. An industrial engineer consultant developed ideal time standards for one unit of the Berkley model pedestal. The standards follow, along with the cost accountant's determination of current labor pay rates: Worktype 1 Worktype 2 Worktype 3 0.18 hour @ $12.31 per hour 0.32 hour @ $10.89 per hour 0.62 hour @ $19.65 per hour Required: a. Using the preceding data, calculate the direct labor cost for a Berkley model pedestal. b. Would it be appropriate to use the cost calculated in part a as a standard cost for evaluating direct labor performance and valuing inventory? Complete this question by entering your answers in the tabs below. Required A Required B Would it be appropriate to use the cost calculated in part a as a standard cost for evaluating direct labor performance and valuing inventory? Would it be appropriate to use the cost calculated in part a as a standard cost for evaluating direct labor performance and valuing inventory? < Required A

Oakwood Creations Company makes decorative candle pedestals. An industrial engineer consultant developed ideal time standards for one unit of the Berkley model pedestal. The standards follow, along with the cost accountant's determination of current labor pay rates: Worktype 1 Worktype 2 Worktype 3 0.18 hour @ $12.31 per hour 0.32 hour @ $10.89 per hour 0.62 hour @ $19.65 per hour Required: a. Using the preceding data, calculate the direct labor cost for a Berkley model pedestal. b. Would it be appropriate to use the cost calculated in part a as a standard cost for evaluating direct labor performance and valuing inventory? Complete this question by entering your answers in the tabs below. Required A Required B Would it be appropriate to use the cost calculated in part a as a standard cost for evaluating direct labor performance and valuing inventory? Would it be appropriate to use the cost calculated in part a as a standard cost for evaluating direct labor performance and valuing inventory? < Required A

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 9CE: Patterson Company produces wafers for integrated circuits. Data for the most recent year are...

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Oakwood Creations Company makes decorative candle pedestals. An industrial engineer consultant developed ideal time standards for one unit of the Berkley model pedestal. The standards follow, along with the cost accountant's determination of current labor pay rates: Worktype 1 Worktype 2 Worktype 3 0.16 hour @ $12.28 per hour 0.34 hour @ $10.93 per hour 0.63 hour @ $19.57 per hour Required: a. Using the preceding data, calculate the direct labor cost for a Berkley model pedestal. b. Would it be appropriate to use the cost calculated in part a as a standard cost for evaluating direct labor performance and valuing inventory? Complete this question by entering your answers in the tabs below. Required A Required B Using the preceding data, calculate the direct labor cost for a Berkley model pedestal. Note: Do not round intermediate calculations. Round final answer to 2 decimal places. Direct labor cost
Oakwood Creations Company makes decorative candle pedestals. An industrial engineer consultant developed ideal time standards for one unit of the Berkley model pedestal. The standards follow, along with the cost accountant's determination of current labor pay rates: Worktype 1 Worktype 2 Worktype 3 Required: 0.18 hour @ $12.39 per hour 0.30 hour @ $10.80 per hour 0.65 hour @ $19.68 per hour a. Using the preceding data, calculate the direct labor cost for a Berkley model pedestal. b. Would it be appropriate to use the cost calculated in part a as a standard cost for evaluating direct labor performance and valuing inventory? Complete this question by entering your answers in the tabs below. Required A Required B Using the preceding data, calculate the direct labor cost for a Berkley model pedestal. Note: Do not round intermediate calculations. Round final answer to 2 decimal places. Direct labor cost
Rex Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Rex Industries data Activity Machine setups Machine hours Inspections Overhead per Activity $155,000 352,800 120,750 Annual Usage 4,000 14,112 3,500 Overhead Rate per Activity $ Complete the chart and compute the overhead rate for each activity. Round to the nearest penny, two decimal places.
Developing direct labor cost standards Brass Creations Co. makes decorative candle pedestals. An industrial engineer consultant developed ideal time standards for one unit of the Cambridge model pedestal. The standards follow, along with the costaccountant’s determination of current labor pay rates:Worktype 1 . . . . . . . . . . . . . . . . . . . . . . 0.20 hour @ $18.40 per hourWorktype 2 . . . . . . . . . . . . . . . . . . . . . . 0.30 hour @ $16.50 per hourWorktype 3 . . . . . . . . . . . . . . . . . . . . . . 0.42 hour @ $28.00 per hourRequired:a. Using the preceding data, calculate the direct labor cost for a Cambridge modelpedestal.b. Would it be appropriate to use the cost calculated in part a as a standard cost for evaluating direct labor performance and valuing inventory? Explain your answer.
Based on analyzing the relationship of total factory overhead (Y) to direct labor hours (X). The following relationship was found: Y = $1,000 + $2X The equation was probably found through the use of which of the following mathematical techniques?
Rex Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Compute the overhead rate for each activity. Round your answers to two decimal places. Overhead Overhead Annual Rate per Activity per Activity Usage Activity Machine Setups $157,850 4,100 $ Machine Hours 324,622 14,114 2$ Inspections 119,000 3,400
Using the pre-determined overhead rate calculated above, calculate the overhead that would be allocated to a product that uses 3.5 hours of machine time. What will happen if actual overhead costs turn out to be higher or lower than this calculation? predetermined overhead rate calculated above: $25/ hour of machine run time
Hartley Uniforms produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Hartley Uniforms reports the following cost data for the past year: E (Click the icon to view the cost data.) Read the requirements. Data table Requirement 1. Compute the predetermined manufacturing overhead rate. Enter the formula for predetermined manufacturing overhead rate, then compute the rate. Budget Actual Estimated yearly overhead costs Estimated yearly machine hours Predetermined overhead rate Direct labor hours. 7,600 hours 6,100 hours 194,400 7,200 $ 27 per machine hour Machine hours. 7,200 hours 6,300 hours Requirement 2. Calculate the allocated manufacturing overhead for the past year. Depreciation on salespeople's autos 23,000 $ 23,000 Indirect materials.. $ 48,500 $ 50,500 Manufacturing Depreciation on trucks used to deliver uniforms to customers $ 13,000 $ 11,000 Actual machine hours Predetermined overhead rate overhead allocated Depreciation on…
Fellar Corporation has identified the following information: Activity pools Materials handling Machine maintenance Cost drivers Number of material moves Number of machine hours $ 40,320 $ 32,400 Number of material moves Number of machine hours 720 81,000 Required: 1. Calculate the activity rate for each activity pool. 2. Determine the amount of overhead assigned to Fellar's products if they have the following activity demands: Product A 550 41,500 Product B 170 39,500 3. Using activity proportions, determine the amount of overhead assigned to Fellar's products.
The assembly-line activities are given as follows for the manufacturing of a product: Performance Time (mins) Performance Time (mins) 6 4 5 3 Task A B с D Predecessors A B B Task E F G H 524 2 Predecessors C с D, E, F G For a given 7-minute cycle time after allowances, the theoretical minimum number of workstations = (round your response to the immediate higher whole number).
Activity Rates and Product Costs using Activity-Based Costing Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Budgeted Activity Activity Cost Activity Base Casting $280,000 Machine hours Assembly 159,600 Direct labor hours Inspecting 26,400 Number of inspections Setup 37,250 Number of setups Materials handling 43,860 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 5,300 4,700 10,000 Direct labor hours 4,560 6,840 11,400 Number of inspections 1,820 580 2,400 Number of setups 200 50 250 Number of loads 810 210 1,020 Units produced 10,600 5,300 15,900 a. Determine the activity rate for each activity. If required, round the rate to the…
As part of his job as a cost analyst, Max Thompson collected the following information concerning the operations of the Machining Department: Observation January February March TTT Machine-hours Total Operating Costs 4,000 4,600 3,800 4,400 4,500 $46,000 49,500 45,750 48,000 49,300 April May Required: a) Use the high-low method to determine the estimating cost function with machine hours as the cost driver.