cost acunting, Cost Accounting

Weston Corporation manufactures a product that is available in both a deluxe and a regular model. The company has made the regular model for years; the deluxe model was introduced several years ago to tap a new segment of the market. Since introduction of the deluxe model, the company''s profits have steadily declined, and management has become concerned about the accuracy of its costing system. Sales of the deluxe model have been increasing rapidly.
Overhead is applied to products on the basis of direct labor-hours. At the beginning of the current year, management estimated that $3,080,000 in overhead costs would be incurred and the company would produce and sell 10,000 units of the deluxe model and 50,000 units of the regular model. The deluxe model requires 2.0 hours of direct labor time per unit, and the regular model requires 1.0 hour. Direct materials and labor costs per unit are given below:
Deluxe Regular
Direct materials cost per unit $ 50.00 $ 30.00
Direct labor cost per unit $ 30.00 $ 15.00

1-a. Compute the predetermined overhead rate using direct labor-hours as the basis for allocating overhead costs to products.
Predetermined overhead rate $ per DLH
1-b. Compute the unit product cost for one unit of each model.
Unit product
Deluxe $
Regular $
Posted Date: 11/25/2016 1:48:02 AM | Location : Ethiopia

Related Discussions:- cost acunting, Assignment Help, Ask Question on cost acunting, Get Answer, Expert's Help, cost acunting Discussions

Write discussion on cost acunting
Your posts are moderated
Related Questions

Walter manufactures a silicone paste wax that goes through three processing departments: cracking, blending, and packing. All raw materials are introduced at the start of work in t

Conceptualizing Job Costing Start to develop an understanding of job costing by thinking about the simple illustration. Jack Castle owns an electrical constricting company, Cas

Income Statement Preparation The following information is taken from the records of Wadley's Car Wash for the year ended December 31, 2012. Income taxes . . . . . . . . . . .

Go the Hershey website to learn how to make Hershey chocolate. Review the process and take a look at some of the videos. Pay particular attention to the process steps of milling an

Fixed Costs Are costs such do not change along with of the level of output? It is also named as autonomous cost, as it stays the similar irrespective of the activity level as

Contract Accounts It is a separate account such is maintained and opened for every contract undertaken for the reasons of accumulating cots.  Every contract is given a number

Morrow Company applies overhead based on direct labor hours. At the beginning of the year, Morrow estimates overhead to be $620,000, machine hours to be 180,000, and direct labor h