cost acunting, Cost Accounting

Assignment Help:
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

Required:
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
cost
Deluxe $
Regular $

Related Discussions:- cost acunting

Subsidiary ledgers and control accounts, Example B & B Mechanical Repai...

Example B & B Mechanical Repairs is a small, family owned partnership that specialises in the servicing and repair of motor vehicles. The business employs three qualified mecha

Standard costing, What are the benefitss and drawbacks of standard costing?...

What are the benefitss and drawbacks of standard costing?

Produce a revenue statement, XYZ Co. manufactures automation machinery acco...

XYZ Co. manufactures automation machinery according to customer specifications.  The company is relatively new and has grown each year.  XYZ Co. operated at about 75% of practical

How many pizzas must vince''s sell to break even, Vince's Pizza delivers pi...

Vince's Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are $48,000. The sales price averages $9, and it costs t

Calculate cost of direct manufacturing labour, Dixon Corporation was establ...

Dixon Corporation was established on January 1, Year 1.  The firm has 2 divisions, Division A and Division B.  Division A manufactures standard carpets, and Division B manufactures

What is the steady-state value of capital labor ratio, 1. A country has the...

1. A country has the per-worker production function  y t = 6 k t 0.5   where y t is output per worker and k t is the capital-labor ratio. The depreciation rate is 0.1 and t

Assumptions of cvp, Assumptions of CVP This chapter has given informati...

Assumptions of CVP This chapter has given information on how to apply CVP for the business analysis. Most of this analysis is keyed to the model of how profitability is impacte

Break even analysis, B REAK EVEN ANALYSIS Break even analysis is a bro...

B REAK EVEN ANALYSIS Break even analysis is a broadly used technique to study cost-volume-profit relationship.  It can be explained as - 'a system for determination of that le

Differential analysis, West Industries is a highly decentralized corporatio...

West Industries is a highly decentralized corporation with independent operating divisions. Each division is evaluated and rewarded based on its total net income. One of the divisi

Example of job order costing, Example of Job Order Costing The giv...

Example of Job Order Costing The given transactions were made by a company in the month of December. Direct Materials a) 8,000/- was bought on credit, out of these

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd