​Smarties, the sugar candy that is packaged in rolls of 15 small​ candies, come in six​ flavors: white​ (orange crème), yellow​ (pineapple), pink​ (cherry), green​ (strawberry), purple​ (grape), and orange​ (orange). Smarties are gluten free and vegan and have 25 calories per roll of 15 candies. The main ingredient in Smarties is​ dextrose, a form of sugar.
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Read the requirementsLOADING....
Requirement 1. Select an example of each of the following types of costs at the Smarties Candy​ Company: (a) Direct​ Material, (b) Direct​ Labor, (c) Manufacturing Overhead​ (MOH), and​ (d) Selling and Administrative​ (S+A) Expense.

Type of Cost
Example(s)
a.
Direct Material
Dextrose, flavorings, food coloring, wrapper
b.
Direct Labor
Salaries and wages for employees who work in the manufacturing plant
c.
MOH
Depreciation of the factory and equipment, taxes and insurance for the factory, and factory utilities
d.
S+A Expense
Marketing, salaries of nonfactory personnel, non-factory rent, design expense, customer service

Requirement 2. Assume that only Smarties candies are made in the New Jersey plant. Do you think the Smarties Candy Company is likely to use job order costing or process​ costing? Explain.
The Smarties Candy Company is likely to use
process
costing because Smarties are produced in
large batches through a series of uniform steps resulting in identical units.
Requirement 3. If the New Jersey plant begins to produce Smarties​ 'n creme in addition to Smarties candy​ rolls, would this change be likely to impact whether the company uses job order costing or process​ costing? Why or why​ not?
The company would likely
continue to use process costing
because the company is
still producing Smarties in mass quantities through a series of uniform steps.

1. Convert ​'s salary to an hourly wage rate for billing purposes.
Select the formula and enter the amounts to compute ​'s direct labor rate per hour.
Direct labor costs
/
Direct labor hours
=
Direct labor rate

$68,200
/
2,200
=
$31
/hour

2. Calculate the professional billing rate ​& Associates would use for billing out ​'s services. ​(Round all amounts to the nearest​ cent.)
Professional labor cost per hour
$31.00
Plus:
Indirect cost allocation rate per hour
26.00
Total hourly cost
$57.00
Plus:
Profit markup
11.40
Hourly billing rate for Brianna Carlton
$68.40

Pools manufactures swimming pool equipment. has estimated the following manufacturing overhead rates using different independent​ situations:
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Determine the total manufacturing overhead allocated to ​'s manufacturing jobs in the following independent situations.
1.
Assume that the company actually used direct labor hours.
2.
Assume that the company actually incurred of direct labor cost.
3.
Assume that the company actually ran the machines hours.
4.
Briefly explain what you have learned about the total manufacturing overhead allocated to production.
1. Determine the total manufacturing overhead allocated to ​'s manufacturing jobs assuming that the company actually used direct labor hours.
Enter the formula and compute the total manufacturing overhead allocated to ​'s manufacturing jobs.





Manufacturing


Actual direct labor hours
x
Predetermined overhead rate
=
overhead allocated

37,950
x
$32
=
$1,214,400

2. Determine the total manufacturing overhead allocated to ​'s manufacturing jobs assuming that the company actually incurred of direct labor cost.
Enter the formula and compute the total manufacturing overhead allocated to ​'s manufacturing jobs. ​(Enter whole percentages as a decimal to two​ places, X.XX.)






Manufacturing


Actual direct labor cost
x
Predetermined overhead rate
=
overhead allocated

765,000
x
1.6
=
$1,224,000

3. Determine the total manufacturing overhead allocated to ​'s manufacturing jobs assuming that the company actually ran the machines hours.
Enter the formula and compute the total manufacturing overhead allocated to ​'s manufacturing jobs.





Manufacturing


Actual machine hours
x
Predetermined overhead rate
=
overhead allocated

24,600
x
$48
=
$1,180,800

4. Briefly explain what you have learned about the total manufacturing overhead allocated to production.
The total amount of manufacturing overhead allocated during the year is dependant upon two factors
the allocation base used and the actual quantity of the base used.
As a​ result, a company could either overallocate or underallocate manufacturing overhead depending on
the allocation base used and the actual manufacturing overhead for the year.

第四章


a.
The time that elapses between the start of production and the​ product's completion is known as
manufacturing cycle time
.
b.
Lean thinking
is the management philosophy and strategy focused on creating value for the customer by eliminating waste.
c.
The costs incurred for every​ batch, regardless of the number of units in the​ batch, are known as
batch-level costs
.
d.
Costs incurred to avoid​ poor-quality good or services are
prevention costs
.
e.
Using​ activity-based costing information to make decisions that increase profits while satisfying​ customers' needs is
activity-based management
.
f.
An acronym for the eight wastes is
DOWNTIME
.
g.
The costs incurred for a particular​ product, regardless of the number of units or batches of the product​ produced, are known as
product-level costs
.
h.
Activity-based costing
focuses on activities as fundamental building blocks in compiling the indirect costs of​ products, services, and customers.
i.
Internal failure costs
are costs incurred when defects in​ poor-quality goods or services are corrected before making delivery to customers.
j.
Unit-level costs
are incurred for every single unit of product produced.
k.
Costs incurred when the company does not detect​ poor-quality goods or services until after delivery is made to customers are
external failure costs
.
l.
Facility-level costs
are costs incurred no matter how many​ units, batches, or products are produced.
m.
Kaizen
is a Japanese word meaning​ "change for the​ better."
n.
Costs incurred to detect​ poor-quality goods or services are
appraisal costs
.
o.
The rate of production needed to meet customer demand yet avoid overproduction is known as
takt time
.
p.
POUS
is a storage system used to reduce the waste of transportation and​ movement, in which​ tools, materials, and equipment are stored in proximity to where they will be used most frequently.
q.
TQM
is a management philosophy of delighting customers with superior products and services by continually setting higher goals and improving every business function.
Question is complete.

1. What is the total amount of manufacturing overhead that should be allocated to this​ order?
Determine the basic formula needed to allocate overhead to this​ order, then compute the overhead allocated to each activity.





Manufacturing

Activity cost allocation rate
x
Cost driver (actual use)
=
overhead allocated

Preparation
44
x
21
=
$924
Cooking/draining
41
x
36
=
$1,476
Packaging
0.07
x
12,000
=
$840

The total amount of manufacturing overhead assigned to this order is $
3,240
.

2. How much manufacturing overhead should be assigned to each​ bag?
Determine the formula needed to calculate manufacturing overhead to be assigned to each​ bag, then compute the manufacturing overhead per bag. ​(Enter your answer to two decimal​ places.)





Manufacturing


Manufacturing overhead allocated
/
Number of units
=
overhead per unit

$3,240
/
12,000
=
$0.27

3. What other costs will the company need to consider to determine the total manufacturing costs of this​ order?
In addition to the costs​ above, needs to consider
the direct materials and direct labor
.

a.
There is an emphasis on building in quality.
Lean production
b.
The final operation in the production sequence​ "pulls" parts from the preceding operation.
Lean production
c.
Employees do a variety of​ jobs, including maintenance and setups as well as operation of machines.
Lean production
d.
Suppliers make frequent deliveries of small quantities of raw materials.
Lean production
e.
Each employee is responsible for inspecting his or her own work.
Lean production
f.
Suppliers can access the​ company's intranet.
Lean production
g.
Large stocks of finished goods protect against lost sales if customer demand is higher than expected.
Traditional production
h.
The workflow is continuous to attempt to balance the rate of production with the rate of demand.
Lean production
i.
Setup times are long.
Traditional production
j.
A workplace organization system called​ "5S" is frequently used to keep work spaces clean and organized.
Lean production
k.
The manufacturing cycle times are longer.
Traditional production
l.
Management works with suppliers to ensure​ defect-free raw materials.
Lean production
m.
Products are produced in large batches.
Traditional production

correct,E4-21A (similar to)
Industries manufactures a variety of custom . The company has traditionally used a plantwide manufacturing overhead rate based on machine hours to allocate manufacturing overhead to its products. The company estimates that it will incur in total manufacturing overhead costs in the upcoming year and will use machine hours.
LOADING...Click the icon to view the additional information about the hazardous waste disposal​ fees.)
Expected usage and costs for manufacturing overhead activities for the upcoming year are as​ follows:
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During the​ year, is started and completed. Usage for this job​ follows:
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Read the requirementsLOADING....
Requirement 1. Calculate the cost of using the traditional plantwide manufacturing overhead rate based on machine hours.
Begin by calculating the plantwide overhead rate. First identify the formula used to compute the plantwide overhead​ rate, then compute the rate. ​(Abbreviations used: MOH​ = manufacturing​ overhead; mfg.​ = manufacturing)

Total estimated manufacturing costs
/
Estimated total machine hours
=
Plantwide mfg. overhead rate

$1,260,000
/
15,000
=
$84

Calculate the cost of .
Job Cost Record
Manufacturing
JOB 358
Costs
Direct materials
$16,250
Direct labor
700
Manufacturing overhead allocated
7,560
Total job cost
$24,510

Requirement 2. Calculate the cost of using​ activity-based costing.
Begin by calculating the allocation rate for each activity. First determine the formula to compute the allocation rate in an​ activity-based costing​ system, then compute the rate for each activity. ​(Abbreviations used: est.​ = estimated,​ MH=machine hours,​ Mach.=Machine, Eng.=Engineering)





Activity cost

Total est. activity cost pool
/
Total est. activity allocation base
=
allocation rate

Mach. maintenance
$300,000
/
15,000
=
$20
per MH

Eng. change orders
$300,000
/
6,000
=
$50
per order

Waste disposal
$660,000
/
2,000
=
$330
per pound

Calculate the cost of using​ activity-based costing.
Job Cost Record
Manufacturing
JOB 358
Costs
Direct labor
$700
Direct materials
16,250
Manufacturing overhead allocated
25,400
Total job cost
$42,350

Requirement 3. If you were a​ manager, which cost estimate would provide you more useful​ information? How might you use this​ information?
The cost estimate based on the

activity-based costing rates
would provide more useful information because this cost estimate takes into account
the specific resources used by each product

. This information can be used to
price jobs based on more accurate costs
.