145. Time Bender Company makes watches and clocks. The following estimated data are available for the company’s next fiscal year:
Total direct labor costs: $1,700,000
Total setup costs: $190,000
|
Watches
|
Clocks
|
Expected production
|
800,000
|
100,000
|
Direct labor hours needed
|
68,000 DLH
|
17,000 DLH
|
Machine setups needed
|
1,000 setups
|
1,000 setups
|
Determine the setup cost per unit for the watches and the clocks if setup costs are assigned using a plantwide overhead rate based on direct labor hours. (Round to two decimal places.)
146. Base Runner, Inc. manufactures baseball bats that go through two operations, cutting and sanding, before they are complete. Expected costs and activities for the two departments are shown in the following table:
|
Cutting
|
Sanding
|
Direct labor hours
|
50,000 DLH
|
5,000 DLH
|
Machine hours
|
25,000 MH
|
50,000 MH
|
Overhead costs
|
$50,000
|
$37,500
|
a. Compute a departmental overhead rate for the cutting department based on machine hours.
b. Compute a departmental overhead rate for the sanding department based on machine hours.
147. Blast Rocket Company manufactures candy-coated popcorn treats that go through two operations, popping and baking, before they are complete. Expected costs and activities for the two departments are shown in the following table:
|
Popping
|
Baking
|
Direct labor hours
|
238,000 DLH
|
50,000 DLH
|
Machine hours
|
25,000 MH
|
141,500 MH
|
Overhead costs
|
$357,000
|
$452,800
|
a. Compute a departmental overhead rate for the popping department based on direct labor hours.
b. Compute a departmental overhead rate for the baking department based on machine hours.
148. Freeze Frame, Inc. produces cameras that require three processes, A, B, and C, to complete. Digital camera model #789 is the best-selling of all the many types of cameras produced. Information related to the 550,000 units of digital camera model #789 produced annually is shown below.
Direct materials
|
$450,000
|
Direct labor
|
|
Department A (7,000 DLH x $21 per DLH)
|
$147,000
|
Department B (25,000 DLH x $19 per DLH)
|
$475,000
|
Department C (10,000 DLH x $26 per DLH)
|
$260,000
|
Machine Hours
|
|
Department A
|
42,000 MH
|
Department B
|
23,000 MH
|
Department C
|
38,000 MH
|
Freeze Frame’s total expected overhead costs and related overhead data are shown below:
|
Department A
|
Department B
|
Department C
|
Direct labor hours
|
90,000 DLH
|
75,000 DLH
|
42,000 DLH
|
Machine hours
|
67,500 MH
|
135,000 MH
|
53,200 MH
|
Manufacturing overhead costs
|
$540,000
|
$675,000
|
$399,000
|
a. Compute a departmental overhead rate for department A based on direct labor hours.
b. How much overhead is associated with model 789 from department A?
c. Compute a departmental overhead rate for department B based on direct labor hours.
d. How much overhead is associated with model 789 from department B?
e. Compute a departmental overhead rate for department C based on direct labor hours.
f. How much overhead is associated with model 789 from department C?
g What is the per unit cost of the 550,000 units of model 789?
149. Freeze Frame, Inc. produces cameras that require three processes, A, B, and C, to complete. Digital camera model #789 is the best-selling of all the many types of cameras produced. Information related to the 550,000 units of digital camera model #789 produced annually is shown below:
Direct materials
|
$450,000
|
Direct Labor
|
|
Department A (7,000 DLH x $21 per DLH)
|
$147,000
|
Department B (25,000 DLH x $19 per DLH)
|
$475,000
|
Department C (10,000 DLH x $26 per DLH)
|
$260,000
|
Machine Hours
|
|
Department A
|
42,000 MH
|
Department B
|
23,000 MH
|
Department C
|
38,000 MH
|
Freeze Frame’s total expected overhead costs and related overhead data are shown in the following table:
|
Department A
|
Department B
|
Department C
|
Direct labor hours
|
90,000 DLH
|
75,000 DLH
|
42,000 DLH
|
Machine hours
|
67,500 MH
|
135,000 MH
|
53,200 MH
|
Manufacturing overhead costs
|
$540,000
|
$675,000
|
$399,000
|
a. Compute a departmental overhead rate for department A based on machine hours.
b. How much overhead is associated with model 789 from department A?
c. Compute a departmental overhead rate for department B based on direct labor hours.
d. How much overhead is associated with model 789 from department B?
e. Compute a departmental overhead rate for department C based on machine hours.
f. How much overhead is associated with model 789 from department C?
g What is the per unit cost of the 550,000 units of model 789?