<">

Question Details

(Solved) (Latest ver. Aug 2020) - Overhead costs/ Transfer price

Brief item decscription


Item details:

Question:

Company XYZ attempting to determine costs associated with various jobs. Current production records show the following information for two recent jobs:

Job 1Job 2
Direct materials costs$15,600$31,200
Direct labor costs:
Assembly Department$ 3,900$ 5,200
Cutting Department$10,400$ 2,600
Machine hours used in the
Assembly Department200600
Units completed150200

Assume overhead application rates of $16 per machine hour for the Assembly Department and 150 percent of direct labor costs (dollars) for the Cutting Department.

Required:

a.What are the total overhead costs applied to Job 1?
b.What is the total cost associated with Job 2?

A company manufactures two products: A and B. The overhead costs have been divided into four overhead pools that use the following cost drivers:

Number
NumberNumberof LaborLabor
Productof Ordersof SetupsTransactionsHours
X6020502,000
Y208070500
Cost per pool:$16,000$13,000$2,400$20,000

Required:

a.Assign overhead costs to products X and Y using a direct labor hours basis.
b.Assign overhead costs to products X and Y using activity-based costing.

TCK sells all of its output to the Final Product Division of the company. The only product of the Components Division is a remote control shell used by the Final Product Division. If bought from outside, the retail price would be $2 per shell. Each remote control completed by the Final Product Division requires one shell. Production quantity and cost data for the year are as follows:

Remote control shells10,000 shells
Direct materials$3,000
Direct labor$2,000
Factory overhead (25 percent is variable)$2,000
Administrative expenses (20 percent is variable)$2,500

Required: Compute the transfer price per unit for a remote control shell using

a.Market price.
b.Variable product costs plus 20 percent.
c.Absorption costs plus 20 percent.

 







About this question:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Sep 16, 2020

PRICE: $11.5

Solution~00011405.zip (18.37 KB)

Buy this answer for only: $11.5

Pay using PayPal (No PayPal account Required) or your credit card. All your purchases are securely protected by PayPal.
SiteLock

Need a similar solution fast, written anew from scratch? Place your own custom order

We have top-notch tutors who can help you with your essay at a reasonable cost and then you can simply use that essay as a template to build your own arguments. This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student. New solution orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

Order Now