Maurice Tutor

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Teaching Since: May 2017
Last Sign in: 401 Weeks Ago, 2 Days Ago
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Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 29 Jul 2017 My Price 6.00

Trone Company

EXERCISE 10A–5 Predetermined Overhead Rates [LO4]

Operating at a normal level of 24,000 direct labor-hours per year, Trone Company produces 8,000 units of product. The direct labor wage rate is $12.60 per hour. Two pounds of raw materi- als go into each unit of product at a cost of $4.20 per pound. Variable manufacturing overhead should be $1.60 per standard direct labor-hour. Fixed manufacturing overhead should be $84,000 per year.

Required:

1.       Using 24,000 direct labor-hours as the denominator activity, compute the predetermined over- head rate and break it down into fixed and variable elements.

2.       Complete the standard cost card below for one unit of product:

 

 

Text Box: Direct materials, 2 pounds at $4.20 per pound . . . . . . $8.40 Direct labor, ? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ? Variable manufacturing overhead, ? . . . . . . . . . . . . . . ? Fixed manufacturing overhead, ? . . . . . . . . . . . . . . . . ? Total standard cost per unit . . . . . . . . . . . . . . . . . . . . . $ ?

Answers

Maurice Tutor
(5)
Status NEW Posted 29 Jul 2017 10:07 PM My Price 6.00

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