Prepare the reports in a responsibility system for: The vice president of production.To VicePresident-ProductionControllableCosts:VP ProductionAssemblyfactories:TotaltA$BudgetLALA$Actual$LA$FavorableUnfavorableNeither Favoranor Unfavorab Bridgeport Company's organization chart includes the president; the vice president of production; three assembly factories-Dallas,Atlanta, and Tucson; and two departments within each factory-Machining and Finishing. Budget and actual manufacturing cost datafor July 2022 are as follows.Finishing Department-Dallas: direct materials $36,550 actual, $37,840 budget; direct labor $71,724 actual, $70,520 budget;manufacturing overhead $43,860 actual, $42,312 budget.Machining Department-Dallas: total manufacturing costs $189,200 actual, $188,340 budget.Atlanta factory: total manufacturing costs $364,640 actual, $361,200 budget.Tucson factory: total manufacturing costs $425,012 actual, $426,990 budget.The Dallas factory manager's office costs were $81,700 actual and $79,120 budget. The vice president of production's office costswere $113,520 actual and $111,800 budget. Office costs are not allocated to departments and factories.

Variance is the difference between budgeted amount and actual amount. Variance is favorable when…

Prepare the reports in a responsibility system for: The vice president of production. To Vice President- Production Controllable Costs: VP Production Assembly factories: $ Budget $ Actual $ Favorabl Unfavorab Neither Favo nor Unfavor

Prepare the reports in a responsibility system for: The vice president of production. To Vice President- Production Controllable Costs: VP Production Assembly factories: $ Budget $ Actual $ Favorabl Unfavorab Neither Favo nor Unfavor

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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Rockford Company has four departmental accounts: Building Maintenance, General Factory Overhead, Machining, and Assembly. The direct labor hour method is used to apply factory overhead to the jobs being worked on in Machining and Assembly. The company expects each production department to use 30,000 direct labor hours during the year. The estimated overhead rates for the year include the following: During the year, both Machining and Assembly used 28,000 direct labor hours. Factory overhead costs incurred during the year follow: In determining application rates at the beginning of the year, cost allocations were made as follows, using the sequential distribution method: Building Maintenance to: General Factory Overhead, 10%; Machining, 50%; Assembly, 40%. General factory overhead was distributed according to direct labor hours. Required: Determine the under- or overapplied overhead for each production department. (Hint: First you must distribute the service department costs.)
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 cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?
Pronghorn Company's organization chart includes the president; the vice president of production; three assembly factories-Dallas, Atlanta, and Tucson; and two departments within each factory-Machining and Finishing. Budget and actual manufacturing cost data for July 2022 are as follows. Finishing Department-Dallas: direct materials $44,200 actual, $45,760 budget; direct labor $86,736 actual, $85,280 budget; manufacturing overhead $53,040 actual, $51,168 budget. Machining Department-Dallas: total manufacturing costs $228,800 actual, $227,760 budget. Atlanta factory: total manufacturing costs $440,960 actual, $436,800 budget. Tucson factory: total manufacturing costs $513,968 actual, $516,360 budget. The Dallas factory manager's office costs were $98,800 actual and $95,680 budget. The vice president of production's office costs were $137,280 actual and $135,200 budget. Office costs are not allocated to departments and factories. (a) Prepare the reports in a responsibility system for: The…
Ayayai Company's organization chart includes the president; the vice president of production; three assembly factories-Dallas, Atlanta, and Tucson; and two departments within each factory-Machining and Finishing. Budget and actual manufacturing cost data for July 2022 are as follows. Finishing Department-Dallas: direct materials $52,700 actual, $54,560 budget; direct labor $103,416 actual, $101,680 budget; manufacturing overhead $63,240 actual, $61,008 budget. Machining Department-Dallas: total manufacturing costs $272,800 actual, $271,560 budget. Atlanta factory: total manufacturing costs $525,760 actual, $520,800 budget. Tucson factory: total manufacturing costs $612,808 actual, $615,660 budget. The Dallas factory manager's office costs were $117,800 actual and $114,080 budget. The vice president of production's office costs were $163,680 actual and $161,200 budget. Office costs are not allocated to departments and factories. (a) (b) Prepare the reports in a responsibility system…
Fey Company's organization chart includes the president; the vice president of production; three assembly factories- Dallas, Atlanta, and Tucson; and two departments within each factory-Machining and Finishing. Budget and actual manufacturing cost data for July 2022 are as follows. Finishing Department-Dallas: direct materials $42,500 actual, $44,000 budget; direct labor $83,400 actual, $82,000 budget; manufacturing overhead $51,000 actual, $49,200 budget. Machining Department-Dallas: total manufacturing costs $220,000 actual, $219,000 budget. Atlanta factory: total manufacturing costs $424,000 actual, $420,000 budget. Tucson factory: total manufacturing costs $494,200 actual, $496,500 budget. The Dallas factory manager's office costs were $95,000 actual and $92,000 budget. The vice president of production's office costs were $132,000 actual and $130,000 budget. Office costs are not allocated to departments and factories. (a) Your answer is partially correct. Prepare the reports in a…
Expo manufacturing has two production departments and two support departments. The number of employees for each department is as follows: $35,378 O $28,940 Human Resources Accounting Machining Producing Assembly Producing Human Resources shows a budget of $21,000 and accounting, $98,000, for the coming year. Support department costs are allocated on the basis of the number of employees. How much in total support costs would be allocated to assembly, using the step method? The Accounting department is allocated first. $119,000 $34,867 5 10 520 220
Tristion Inc. has two production departments, and estimated the following information for the 2022 fiscal year Assembly Dept. Testing Dept. Overhead $1,496,250 $365,625 Direct labour hours 356,250 81,250 Machine hours 80,000 162,500 Currently, the company uses departmental rates to assign overhead costs. Overhead costs are assigned on the basis of direct labour hours for the Assembly Department and machine hours for the Testing Department. For September, the company reported the following actual data: Assembly Dept. Testing Dept. Overhead $107,560 $34,340 Direct labour hours 28,600 6,770 Machine hours 5,700 13,520 Required (A) What are the predetermined overhead rates for each department? (B) Assume that Job R777 used 4 direct labour hours in the Assembly Department and 3 machine hours in the Testing Department. Compute the overhead assigned to Job R777. (C) How much overhead was applied in the month of September? (D)…
Ivanhoe Company has several processing departments. Costs to be accounted for in the Assembly Department for November 2025 totaled $2,297,376 as follows. Work in process, November 1 Materials Conversion costs Direct materials added during November Direct labor incurred during November Manufacturing overhead assigned during November $79,100 48,800 $127,900 1,601,380 226,000 342,096 $2,297,376 Production records show that 35,400 units were in beginning work in process 30% complete as to conversion costs, 664,800 units were started into production, and 24,600 units were in ending work in process 40% complete as to conversion costs. Materials are added at the beginning of each process, and conversion costs are incurred uniformly throughout the process.
Flounder Company uses a responsibility reporting system. It has divisions in Denver, Seattle, and San Diego. Each division has three production departments: Cutting, Shaping, and Finishing. The responsibility for each department rests with a manager who reports to the division production manager. Each division manager reports to the vice president of production. There are also vice presidents for marketing and finance. All vice presidents report to the president.In January 2022, controllable actual and budget manufacturing overhead cost data for the departments and divisions were as shown here. Manufacturing Overhead Actual Budget Individual costs—Cutting Department—Seattle Indirect labor $73,100 $69,600 Indirect materials 48,200 45,600 Maintenance 20,900 17,700 Utilities 20,600 16,900 Supervision 22,000 19,600 $184,800 $169,400 Total costs…
Sandhill Company has two service departments (personnel and financial) that provide services for one another as well as for two production departments, assembly and finishing. Data for the month follow: Personnel Financial Assembly Finishing Employees 6 8 18 16 Payroll $16,200 $12,900 $29,600 $28,200 Personnel department costs were $79,700, and financial department costs were $44,300. Sandhill uses employees as the allocation base for personnel department costs and payroll costs for financial department costs
Bonita Corporation accumulates the following data relative to jobs started and finished during the month of June 2022. Costs and Production Data Actual Standard Raw materials unit cost $2.20 $2 Raw materials units 11,300 10,900 Direct labor payroll $166,500 $159,600 Direct labor hours 15,000 15,200 Manufacturing overhead incurred $210,420 Manufacturing overhead applied $214,320 Machine hours expected to be used at normal capacity 43,500 Budgeted fixed overhead for June $73,950 Variable overhead rate per machine hour $3.00 Fixed overhead rate per machine hour $1.70 Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The jobs were sold for $473,000. Selling and administrative expenses were $44,400. Assume that the amount of raw materials purchased equaled the amount used. Compute the total overhead variance. Total overhead variance $