Sports Manufacturing Company produces baseball bats. They have recently moved from handcrafted bats to machine ro uced to lower the level ofdefects. At the beginning of the period the firm estimates that the total manufacturing overhead costs for that period will be $450,000. They alsoestimate direct labor hours to be 60,000 and machine hours for the period to be 50,000.Sports Manufacturing Company just received an order for 500 specially-ordered maroon bats for the baseball team. Each of these bats requires 3machine hours.Calculate the amount of overhead which will be applied to the baseball team's jobO $11,250$35000O $13,500O $27300

Overhead rate = Total estimated overhead/Estimated machine hours Overhead rate = $450,000/50,000…

Answered: Sports Manufacturing Company produces…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Sandstone Corporation uses an injection molding machine to make a plastic product, Z35, after receiving firm orders from its customers. Sandstone estimates that it will receive 60 orders for Z35 during the coming year. Each order of Z35 will take 100 hours of machine time. The annual machine capacity is 8,000 hours. Q. Calculate (a) the average amount of time that an order for Z35 will wait in line before it is processed and (b) the average manufacturing cycle time per order for Z35.
Hagerty, Inc. a manufacturer of computer diskettes, currently uses a conventional process cost system. During February, Hagerty plans to purchase P 50,000 of raw materials. Of this amount 80% will be used for current production, while the remainder will serve as a buffer in inventory. Direct labor cost is expected to be P 10,000 During February, and the actual factory overhead is anticipated to total P 65,000. Paul William, the owner, has been considering the use of a JIT inventory system. If implemented at the beginning of February, only the materials needed for current production would be purchased. Requirements: Using T-accounts, enter the February transactions for the purchase and usage of materials under: a) Conventional Costing b) JIT Costing Using T-accounts, enter the February transactions for the labor and overhead costs under: a) Conventional Costing b) JIT Costing Do not record the entry for applied overhead.
Computer World, Inc. manufactures computer parts and keyboards. The annual production and sales of computer parts is 1,000 units, while 1,200 keyboards are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Computer parts require 3 direct labor hours per unit, while keyboards require 2.5 direct labor hours per unit. The total estimated overhead for the period is $114,000. The company is looking at the possibility of changing to an activity-based costing system for its products. What is the predetermined overhead allocation rate using the traditional costing system?
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Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,045 hours each month to produce 2,090 sets of covers. The standard costs associated with this level of production are: Per Set Total $ 49,533 $ 10,450 of Covers Direct materials $23.70 Direct labor 5.00 Variable manufacturing overhead (based on direct labor-hours) $ 4,598 2.20 $30.90 During August, the factory worked only 800 direct labor-hours and produced 1,900 sets of covers. The following actual costs were recorded during the month: Per Set Total $ 44,460 $ 9,880 $ 4,560 of Covers Direct materials (6,500 yards) $23.40 5.20 Direct labor Variable manufacturing overhead 2.40 $31.00 At standard, each set of covers should require 3.0 yards of material. All of the materials…
Irene Corporation manufactures three lines of decorative cabinets for stereo and television sets. Skill is required of the workers and it is not easy to hire persons qualified for the work. At the present time, there are 15 qualified employees (all regular workers) available for this type of work and new personnel are to be hired and trained for the busy first six months of 2021. Each employee works approximately 150 hours a month and is paid the rate of P100 per hour. Production plans based on anticipated sales demand, are given next page in units for each of the three lines of cabinets.
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Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,040 hours each month to produce 2,080 sets of covers. The standard costs associated with this level of production are: Per Set of Covers $40,540 $19.50 3.50 Total Direct materiale Direct labor Variable manufacturing overhead (based on direct labor-hourn) 7.200 2.00 $25.00 E4.160 During August, the factory worked only 600 direct iabor-hours and produced 1,800 sets of covers. The folowing actual costs were recorded during the month: Per Set of Covers 34,200 19.00 3.70 2.30 $25.00 total Direct naterials (5,000 yarde) Direet labor Variable manufacturing overhead $6,640 4,140 At standard, each set of covers should require 2.5 yards of material. All of the materiais purchased…
The owner of Warwick Printing is planning direct labor needs for the upcoming year. The owner has provided you with the following information for next year's plans: Each color on the banner must be printed one at a time. Thus, for example, a four-color banner will need to be run through the printing operation four separate times. The total production volume last year was 800, as follows: The four-color banner is a new product offering for the upcoming year. The owner believes that the expected 1,000-unit increase in volume fromlast year means that direct labor expenses should increase bu 125% (1,000/800). What do you think?
Muspest Supplies is currently evaluating the cost of manufacturing some of the components utilised in their products. Currently the company expects to need 6 000 parts each month. A supplier of the part has been identified and the total cost of purchasing the parts on a monthly basis would be $97 000. In analysing the part costs, the direct labour and materials cost would be $64 000 and the variable overheads would be $22 000.Based only on the relevant cost per unit, which would be the preferred option of Muspest Supplies?HD EDUCATIONA. Unit costs to produce the part would be $14.33 with the unit cost to purchase of $ 16.17. In this case, the best option would be to commence purchasing the part.B. Unit costs to produce the part would be $10.67 with the unit cost to purchase of $ 16.17. In this case, the best option would be to continue to make the part.C. None of the other answers D. Unit costs to produce the part would be $14.33 with the unit cost to purchase of $ 16.17. In this case,…

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