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

King Airlines King Airlines is one of many low-cost airlines in Europe. The managers want to expand the business and have an opportunity to purchase a second-hand plane to op

First of all, look at the balance sheet and income statement as a whole and spot the problem with it. Answer all questions given in the question + dig into each element of the bala

Cost Flow Relationships The following information is available for the first month of operations of Url Inc., a manufacturer of art and craft items: Sales $886,900 Gross profit

Place a prepared slide of Trypunosoma under tlic microscope and focus it under low power, You will observe large number of tiny spindle-shaped trypanosomes lying in the plasma alll

standard hours = 5000 standard wages = Rs.3/hr actual hours worked = 5600 hrs actual wages paid = 17920

What is the major value of the weighted cost of capital calculation for the firm?

Standard Cost Card It is a card record of the Standard or expected costs in producing a specified output.  This gives the physical quantities of inputs and also their monetary

Discuss the advantages and disadvantages of designing an IC using VHDL and synthesis compared with the traditional design approach using schematic capture, simulation and layout.

Direct Materials Budget This budget implies the estimated quantities and costs of every the raw materials and components desired for the output demand by the production budget