Purchase Solution

Support Costs

Not what you're looking for?

Ask Custom Question

The following applies to the following two parts:

A company manufactures pipes and applies manufacturing support costs tp production at a predetermined rate of $15 per direct labor hour. The following data are obtained from the accounting records for June 20x2:

Direct materials $280,000
Direct labor(7,000 @ $11 per hour) $77,000
Plant facility rent $66,000
Plant facility insurance $20,000
Depreciation on machinery and equipment $30,000
Sales commissions $40,000
Administrative expenses $50,000

1) The actual amount of manufacturing support costs incurred in June 20x2 - $80,000, $110,000, $200,000, or $557,000

2) The amount of manufacturing support costs applied to all jobs during June 20x2 total - $77,000, $ 105,000, $ 110,000, or $ 200,000

Purchase this Solution
Solution Preview

1)
Direct materials $280,000
Direct labor(7,000 @ $11 per hour) $77,000
Plant facility rent $60,000 (I am sure that there's ...

Purchase this Solution
Free BrainMass Quizzes
Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

View More Free Quizzes
Related BrainMass Solutions

  • Product price per unit for Bevan's company

    ) Per unit Costs Unit Costs Product X Product Y X Y Direct costs(material plus labor) Unit-level support Batch-level support Product-level support Environmental support Total support Total costs Number of

  • Job order costing

    Actual activity = $5.00 per machine hour x 25,000 hrs = $125,000 Answer: amount of support costs allocated to jobs= $125,000 Using Job order costing, calculates predetermined support cost driver rate and amount of support costs allocated to jobs.

  • Avoidable costs if purchased

    Annual production costs for 1,500 units are as follows: Direct materials $ 125,000 Direct labor 48,000 Variable support costs 75,000 Fixed support costs 65,000 Total costs $313,000 Pratt Witney Company has the option of purchasing the part

  • Cost apportionment through regression and high-low method

    Plot support costs, Y, versus batch size, X. 2. Using regression analysis, measure the cost function of support costs and batch size (number of boards). . 3. Predict the support costs for a batch size of 2500 boards . 4.

  • Western Wood Products cost drivers: single or two part rate method

    Departmental cost driver rates based on direct labor hours for assembly = Cutting support costs/Cutting direct labor hours =25000/1000 =$25 per direct labor hour And machine hours for Assembly = Machine support costs/Machine hours = 33000/2000

  • Total support costs allocation

    198909 Total support costs allocation Carleton Company has two service department and two production departments.

  • Computing ABC method and to compute a cost drive

    Assign Activity Costs to Products Here Support cost driver rate= Manufacturing support/Direct Labor =600000/200000 =300%= Answer Hence c is the answer References: Product Costing and Cost Analysis by Dr. Abed A.

  • Allocating Costs of Support Departments

    The expert examines allocating costs of support departments.

  • accept this special order

    administrative 6.70 3,350,000 Total costs $33.00 $16,500,000 Manufacturing support and selling and administrative costs include both variable and fixed costs; fixed manufacturing support costs for the current year

View More Related Solutions