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| Teaching Since: | May 2017 |
| Last Sign in: | 401 Weeks Ago, 6 Days Ago |
| Questions Answered: | 66690 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Rocky Mountain Outfitters manufactures cowboy boots. Information related to a recent production period is as follows: Estimated manufacturing overhead, 2004 $240,000 Estimated machine hours, 2004 12,000 Direct labor cost, September $ 8,000 Direct materials cost, September $5,000 Supervisors salary, September $3,000 Factory rent, September $1,800 Factory utilities, September $800 Indirect materials cost, September $2,000 Machine hours worked, September 400 During September, 500 pairs of boots were produced. a. Using actual costing, what is the unit cost of one pair of boots produced during September? b. Using normal costing, with machine hours as the activity base, what is the unit cost of one pair of boots produced during sept? c. If normal costing is used was manufacturing overhead over- or underapplied during September.? by how much? d. What might have caused the amount of overhead applied to be different from the actual amount? e. Why would managers at rocky mountain choose to use normal costing rather than actual costing.
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