Exercise 16-3 (Part Level Submission) Wool Cotton Total (a1) Open Show Work SHOW
ID: 2583430 • Letter: E
Question
Exercise 16-3 (Part Level Submission)
Wool
Cotton
Total
(a1)
Open Show Work
SHOW SOLUTION
SHOW ANSWER
LINK TO TEXT
LINK TO TEXT
(a2)
Wool product line
Cotton product line
Open Show Work
SHOW SOLUTION
SHOW ANSWER
LINK TO TEXT
LINK TO TEXT
(b1)
Exercise 16-3 (Part Level Submission)
EcoFabrics has budgeted overhead costs of $1,124,550. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 535,500 for the current year. The company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting (cost driver is machine hours) and design (cost driver is number of setups). Overhead allocated to the cutting cost pool is $428,400 and $696,150 is allocated to the design cost pool. Additional information related to these pools is as follows.Wool
Cotton
Total
Machine hours 119,000 119,000 238,000 Number of setups 1,190 595 1,785 3:53 PM ezto.mheducation.com ·'11 Verizon At the beginning of 2014, Foster Corp's accounting records had the folowing general ledger accounts and balances. FOSTER CORP Foster Corp. completed the folowing transactions during 2014: Purchased land for $9,000 cash. Acquired $33,000 cash from the issue of common stock. 1 Received $72,000 cash for providing services to customers 4 Paid cash operating expenses of $41,200 s Borrowed $18,000 cash from the bank. Paid a $9,000 cash dividend to the stockholders Determined that the market value of the land purchased in event 1 is $43,000. Required Record the transactions in the appropriate general ledger accourts Record the amounts of revenue, expense, and dividends in the Retained Earmings column. Provide the appropriate Stles for these accounts in the last column of the table. (Enter any decreases to account balances with a minus sign. Select "NA" there is no effect on the Accounts Titles for Retained Earnings) As of December 31, 2014, determine the total amount of assets, iabilities, and stockholder's equity and present this information n the form of an accounting equation. wat is the amount of total assets, abilities, and stockholders' equity as of January 1, 2015Explanation / Answer
Solution B1 Total Overhead Cutting overheads 428,400 Design Cost 696,150 Total Overhead 1,124,550 Direct labor hours 535,500 Overhead rate =1124550/535500 Overhead rate /labor hours 2.10 Solution A1 Cost Driver Driver Cost per driver Cutting overheads 428,400 Machine hours 238000 1.80 Design Cost 696,150 Set up hours 1785 390.00 Total Overhead 1,124,550 Solution A2 Overhead allocated-Cutting Wool Product line Cotton Product line Driver 119000 119000 Cost per machine hour 1.80 1.80 Cost allocated 214,200.00 214,200.00 Overhead allocated-Design Wool Product line Cotton Product line Driver 1190 595 Cost per machine hour 390.00 390.00 Cost allocated 464,100.00 232,050.00 Total Overhead cost allocated Wool Product line Cotton Product line Cutting 214,200.00 214,200.00 Design 464,100.00 232,050.00 Total Overhead cost allocated 678,300.00 446,250.00
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.