Problem # 1
The following calendar year information about the Tahoma Corporation is available on December 31:
The company applies overhead on the basis of 125% of direct labor costs. Calculate the amount of over- or underapplied overhead.
Problem # 2
A company uses a process cost accounting system. The following information is available regarding direct labor for the current year:
(a) Calculate the equivalent units of production for direct labor for the year.
(b) Calculate the average cost per equivalent unit for direct labor (round to the nearest cent).
Problem # 3
A retail store has three departments, A, B, and C, each of which has four full-time employees. The store does general advertising that benefits all departments. Advertising expense totaled $90,000 for the current year, and departmental sales were:
How much advertising expense should be allocated to each department?
Texas Toys, a retail store, has four sales departments supported by three service departments. Cost and operational data for each department follow:
Determine the service department expenses to be allocated to Sales Department 1 for:
The solution explains some questions relating to cost and management accounting