1. A company makes DVD players and CD players for sale to automobile manufacture

Question

1. A company makes DVD players and CD players for sale to automobile manufacturers. The total manufacturing overhead is estimated to be $12,000,000.   The total number of direct labor hours is 500,000. What is the cost per direct labor hour?

2. DVD direct materials cost is $75 and direct labor cost is $20. CD direct material cost is $60 and direct labor costs $20. If it takes 2 hours of direct labor to create one DVD player or one CD player, what is the manufacturing overhead per unit for the DVD player and the CD player?

a. What is the Unit product cost of the DVD player and the CD player?

3. Fill in the missing information in the following table:

4. Complete the following table:

5. Complete the following table:

6. Complete the following table:

7. Explain the difference in the total unit cost between the activity-based costing method and the direct-labor-based costing method.

Explanation / Answer

Answer: A trial balance is a listing of all accounts and their balances at a point in time. To prepare a trial balance the company lists the accounts along with their balances. The trial balance lists debits and credits separately. The purpose of a trial balance is to prove the mathematical equality of debits and credits, provide a useful tool to uncover any accounting errors, and help prepare the financial statements.

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