Reference no: EM13554413
Skaros Stairs Co. of Moore designs and builds factory-made premium wooden stairways for homes. The manufactured stairway components (spindles, risers, hangers, hand rails) permit installation of stairways of varying lengths and widths. All are of white oak wood. Budgeted manufacturing overhead costs for the year 2011 are as follows.
Overhead Cost Pools Amount
Overhead cost pools
|
Amounts
|
Purchasing
|
57,000
|
Handing materials
|
82,000
|
Production (cutting, milling, finishing)
|
210,000
|
Setting upt machines
|
85,000
|
Inspecting
|
90,000
|
Inventory control (raw materials and finished goods)
|
126,000
|
Utilities
|
180,000
|
Total budget overhead costs
|
830,000
|
Activity cost pools
|
Cost Drivers
|
Expected Use of Cost Drivers
|
Purchasing
|
Number of orders
|
600
|
Handing materials
|
Number of moves
|
8,000
|
Production (Cutting, milling, finishing)
|
Direct labor hours
|
100,000
|
Setting up machines
|
Number of setupt
|
1,250
|
Inspecting
|
Number of inspections
|
6,000
|
Inventory control (raw materials and finished goods)
|
Number of components
|
168,000
|
Utilities
|
Square feet occupied
|
90,000
|
David Hannon, sales manager, has received an order for 280 stairs from Community Builders, Inc., a large housing development contractor. At David's request, Neal prepares cost estimates for producing components for 280 stairs so David can submit a contract price per stair to Community Builders. He accumulates the following data for the production of 280 stairways.
Direct materials
|
103,600
|
Direct labor
|
112,000
|
Machine hours
|
14,500
|
Number of purchase orders
|
60
|
Number of material moves
|
800
|
Number of machine setups
|
100
|
Number of inspections
|
450
|
Number of components
|
16,000
|
Number of square feet occupied
|
8,000
|
Requirement:
a. Compute the predetermined overhead rate using traditional costing with machine hours as the basis.
b. What is the manufacturing cost per stairway under traditional costing?
c. What is the manufacturing cost per stairway under the proposed activity-based costing?
Determine the heat energy required to raise the temperature
: The specific heat of ethanol is 2.46 J/goC. Find the heat energy required to raise the temperature of 193 g of ethanol from 19oC to 35oC.
|
Organizational performance
: How do you critically examine the role of strategic human resource management with respect to organizational performance?
|
Determine which pulse reaches the microphone first
: A hammer strikes one end of a thick iron rail of length 5.60 m. A microphone located at the opposite end of the rail detects two pulses of sound, Which pulse reaches the microphone first
|
The new office supply discounter
: The new office supply discounter, Peter Clips Etc. (PCE), sells a certain type of ergonomically correct office chair that costs $300. The annual holding cost rate is 40%, annual demand is 600, and the order cost is $20 per order
|
What is the manufacturing cost per stairway
: Compute the predetermined overhead rate using traditional costing with machine hours as the basis and what is the manufacturing cost per stairway under traditional costing?
|
Evaluate the change in entropy of the copper
: A block of copper, mass at 500 grams and initially at T = 293 K is in thermal contact with an electric heater at a resistance 1.00 kiloOhms and negligible mass. A current of 1.00 A is passed for 15.0 seconds. How do you calculate the change in ent..
|
Prepare last years profit report using contribution margin
: Prepare last years profit report using the contribution margin format and calculate the effect this will have on the profitability of the dinner assuming fixed costs will be the same as last year.
|
Explain the first ionization energy of bismuth
: The first ionization energy of bismuth is +703 kJ/mol. What is the longest possible wavelength of light that could ionize an atom of bismuth
|
Evaluate the final temperature of the ball
: A copper ball with a radius of 1.70 cm is heated until its diameter has increased by 0.160 mm. Assuming an initial temperature of 22.3°C, calculate the final temperature of the ball
|