Summit Corporation manufactures machines for the apparel industry. The production manager and cost analyst reviewed the accountsfor the previous quarter and have provided an estimated breakdown of the fixed and variable portions of manufacturing overhead:Administration and supervisionEngineering and indirect laborIndirect suppliesFacilities costRepair and maintenanceTotalFixed$ 31,2506,1008,400133,80058,700$ 238,250Variable$ 10,30059,30027,00012, 20076,800$ 185,600Total$ 41,55065,40035,400146,000135,500$ 423,850Direct materials for the quarter amounted to $355,500. Direct labor for the quarter was $716,500. During the quarter, 9,500 units wereproduced.Required:a. No changes are expected in these cost relations next quarter. The firm has budgeted production of 12,350 units. Provide anestimate for total production cost for next quarter.b. Determine the cost per unit of production for the previous quarter and the estimated cost per unit next quarter.

Name: Summit Corporation manufactures machines for the apparel industry. Th
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Summit Corporation manufactures machines for the apparel industry. The production manager and cost analyst reviewed the accountsfor the previous quarter and have provided an estimated breakdown of the fixed and variable portions of manufacturing ove

Answer:- Variable Cost:- Variable Cost is a cost that varies with the level of output. Variable…

Business

Accounting

Summit Corporation manufactures machines for the apparel industry. The production manager and cost analyst reviewed the accounts for the previous quarter and have provided an estimated breakdown of the fixed and variable portions of manufacturing overhead: Administration and supervision Engineering and indirect labor Indirect supplies Facilities cost Repair and maintenance Total Fixed $ 31,250 6,100 8,400 Variable $ 10,300 59,300 27,000 12,200 133,800 58,700 76,800 $ 238,250 $ 185,600 Total $ 41,550 65,400 35,400 146,000 135,500 $ 423,850 Direct materials for the quarter amounted to $355,500. Direct labor for the quarter was $716,500. During the quarter, 9,500 units were produced. Required: a. No changes are expected in these cost relations next quarter. The firm has budgeted production of 12,350 units. Provide an estimate for total production cost for next quarter. b. Determine the cost per unit of production for the previous quarter and the estimated cost per unit next quarter.

Summit Corporation manufactures machines for the apparel industry. The production manager and cost analyst reviewed the accounts for the previous quarter and have provided an estimated breakdown of the fixed and variable portions of manufacturing overhead: Administration and supervision Engineering and indirect labor Indirect supplies Facilities cost Repair and maintenance Total Fixed $ 31,250 6,100 8,400 Variable $ 10,300 59,300 27,000 12,200 133,800 58,700 76,800 $ 238,250 $ 185,600 Total $ 41,550 65,400 35,400 146,000 135,500 $ 423,850 Direct materials for the quarter amounted to $355,500. Direct labor for the quarter was $716,500. During the quarter, 9,500 units were produced. Required: a. No changes are expected in these cost relations next quarter. The firm has budgeted production of 12,350 units. Provide an estimate for total production cost for next quarter. b. Determine the cost per unit of production for the previous quarter and the estimated cost per unit next quarter.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 19E

See similar textbooks

Similar questions

A manufacturing company has two service and two production departments. Building Maintenance and Factory Office are the service departments. The production departments are Assembly and Machining. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The building maintenance department services all departments of the company, and its costs are allocated using floor space occupied, while factory office costs are allocable to Assembly and Machining on the basis of direct labor hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.
A manufacturing company has two service and two production departments. Human Resources and Machine Repair are the service departments. The production departments are Grinding and Polishing. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The human resources department services all departments of the company, and its costs are allocated using the numbers of employees within each department, while machine repair costs are allocable to Grinding and Polishing on the basis of machine hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.
The following information is available for the first year of operations of Creston Inc., a manufacturer of fabricating equipment: Determine the following amounts: a. Cost of goods sold b. Direct materials cost c. Direct labor cost
Use the following information for Brief Exercises 4-27 and 4-28: Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and S2. The activity driver for S1 is number of employees, and the activity driver for S2 is number of maintenance hours. The following data pertain to Quillen: Brief Exercises 4-27 (Appendix 4B) Assigning Support Department Costs by Using the Direct Method Refer to the information for Quillen Company above. Required: 1. Calculate the cost assignment ratios to be used under the direct method for Departments S1 and S2. (Note: Each support department will have two ratiosone for Cutting and the other for Sewing.) 2. Allocate the support department costs to the producing departments by using the direct method.
Summit Corporation manufactures machines for the apparel industry. The production manager and cost analyst reviewed the accounts for the previous quarter and have provided an estimated breakdown of the fixed and variable portions of manufacturing overhead: Administration and supervision Engineering and indirect labor Indirect supplies Facilities cost Repair and maintenance Total Fixed $ 34,450 7,700 11,600 137,000 61,900 $ 252,650 Variable $ 13,500 60,900 28,600 15,400 80,000 $198,400 Total $ 47,950 68,600 40, 200 152,400 141,900 $ 451,050 Direct materials for the quarter amounted to $371,500. Direct labor for the quarter was $732,500. During the quarter, 9,500 units were produced. Required: a. No changes are expected in these cost relations next quarter. The firm has budgeted production of 12,350 units. Provide an estimate for total production cost for next quarter. b. Determine the cost per unit of production for the previous quarter and the estimated cost per unit next quarter.
St. Kilda Enterprises produces parts for the electronics industry. The production manager and cost analyst reviewed the accounts for the previous month and have provided an estimated breakdown of the fixed and variable portions of manufacturing overhead. Fixed Variable Total Indirect materials $ 3,800 $ 8,800 $ 12,600 Indirect labor 2,400 16,400 18,800 Supervision 9,800 3,400 13,200 Depreciation 36,800 4,800 41,600 Maintenance 16,800 21,800 38,600 Total $ 69,600 $ 55,200 $ 124,800 Direct materials for the month amounted to $101,500. Direct labor for the month was $196,500. During the month, 12,500 units were produced. Required: a. No changes are expected in these cost relations next month. The firm has budgeted production of 16,250 units. Provide an estimate for total production cost for next month.b. Determine the cost per unit of production for the…
St. Kilda Enterprises produces parts for the electronics industry. The production manager and cost analyst reviewed the accounts for the previous month and have provided an estimated breakdown of the fixed and variable portions of manufacturing overhead. Fixed Indirect materials $ 2,400 Indirect labor. Supervision Depreciation Maintenance Total 1,700 8,400 35,400 15,400 $ 63,300 Variable $ 7,400 15,700 2,700 3,400 20,400 $ 49,600 Cout Hom Direct materials Direct labor Variable overhead Fixed overhead Total costs $ Total 9,800 17,400 11,100 38,800 35,800 $ 112,900 Direct materials for the month amounted to $94,500. Direct labor for the month was $189,500. During the month, 12,500 units were produced. Required: a. No changes are expected in these cost relations next month. The firm has budgeted production of 16.250 units. Provide an estimate for total production cost for next month. b. Determine the cost per unit of production for the previous month and the next month. Complete this…
St. Kilda Enterprises produces parts for the electronics industry. The production manager and cost analyst reviewed the accounts for the previous month and have provided an estimated breakdown of the fixed and variable portions of manufacturing overhead. Fixed Variable Total Indirect materials $ 5,400 $ 10,400 $ 15,800 Indirect labor 3,200 17,200 20,400 Supervision 11,400 4,200 15,600 Depreciation 38,400 6,400 44,800 Maintenance 18,400…
The controller of Hendershot Corporation estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data that are given below: Wall Specialty Mirrors Windows Total expected units produced Total expected material moves Expected direct labor-hours per unit 11,900 1,710 1,190 1,610 8 The total materials handling cost for the year is expected to be $17,148.7O. If the materials handling cost is allocated on the basis of material moves, the total materials handling cost allocated to the specialty windows is closest to: (Round your intermediate calculations to 4 decimal places.)
The controller of PUSO Co. estimates the amount of materials handling overhead cost that should be allocated to the firm's two product using the data below: Specialty Windows 7,000 Wall Mirrors Total expected units produced Total expected materials move Expected direct labor per unit 8,000 900 300 7 5 The total materials handling cost for the year is expected to be P38, 448. If the materials handling cost is allocated on the basis of direct labor-hours, how much of the total material handling cost should be allocated to the specialty windows?
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 following report was prepared for evaluating the performance of the plant manager of Marching Ants Inc. Evaluate and correct this report. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Materlals used In production (Including $56,200 of Indirect materials).... Direct labor (Including $84,400 malntenance salarles)......... Factory overhead: Supervisor salarles... Heat, light, and power.. $ 607,500 562,500 517,500 140,650 Sales salarles...... 348,750 Promotional expenses.... Insurance and property taxes-plant... Insurance and property taxes-corporate offices......... Depreclation-plant and equipment.... Depreclation-corporate offices... Total,.... 315,000 151,900 219,400 123,750 90,000 $3,076,950