Window Help Untitled Edited Verdiana 1. X Company began manufacturing operations

Question

Window Help Untitled Edited Verdiana 1. X Company began manufacturing operations on January 1. The following information is for the year: Direct materials purchased Direct materials used Direct labor 6,984 $5,738 $11,634 As of December 31, all jobs were finished, but there were five jobs that were not sold, with costs totalling $1,434. Cost of Goods Sold for the year was $39,466. What was overhead for the year? 2.X Company has the following estimated costs for the year: Direct materials Direct labor Factory supplies Factory maintenance Advertising Factory rent Sales salaries Factory insurance $59,300 28,900 21,500 29,200 41,400 48,900 45,000 67,500 X Company estimates that direct labor hours for the year will be 1,700, and machines will be operated for 60,000 hours. If overhead is allocated on the basis of direct labor hours, what will the overhead rate be? 3. X Company uses an activity-based costing overhead allocation system. It has identified three activities and three cost drivers. The activities and budgeted costs are as follows: Activity Setup Product Testing Machine Maintenance Budgeted Cost $113,000 $55,000 $61,000 The following cost driver information is available for the company's only two products, A and B Cost Driver setup hours Product A Product B

Explanation / Answer

Solution 1:

Total cost of goods manufactured = Cost of goods sold + Cost of unsold job = $39,466 + $1,434 = $40,900

Overhead for the year = Cost of goods manufactured - Direct material used - Direct labor

= $40,900 - $5,738 - $11,634 = $23,528

Solution 2:

Total estimated factory overhead = Factory supplies + Factory maintenance + Factory rent + Factory insurance

= $21,500 + $29,200 + $48,900 + $67,500 = $167,100

Estimated direct labor hours = 1700

Overhead rate = $167,100 / 1700 = $98.29 per hour

Solution 3:

Note: As multiple questions are posted, i have answered more than required questions as per chegg policy. Kindly post separate question for answer of remaining.

Compuatation of Activity rate and cost allocated to product B Cost Pool Total Cost Cost Driver Nos of cost driver unit Allocation rate Product B Cost Driver unit Allocated Cost Setup $113,000.00 Setup hours 92700 $1.22 64100 $78,137 Product Testing $55,000.00 Tests 96400 $0.57 44000 $25,104 Machine Maintenance $61,000.00 Machine hours 112500 $0.54 46200 $25,051 Total $128,291

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