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  3. Liberty ACCT 212 Chapter 4 Homework Answers Complete Solutions

Contents

  • 1 Liberty ACCT 212 Chapter 4 Homework Answers Complete Solutions
      • 1.0.1 Question 1
    • 1.1 STATUS
      • 1.1.1 Question 2
      • 1.1.2 Question 3
      • 1.1.3 Question 4

Liberty ACCT 212 Chapter 4 Homework Answers Complete Solutions

Excel will automatically update your answers. Just put your values and data into right places.

Download it for a complete solution.

Question 1

Laval produces lamps and home lighting fixtures. Its most popular product is a brushed aluminum desk lamp. This lamp is made from components shaped in the fabricating department and assembled in the assembly department. Information related to the 31,000 desk lamps produced annually follows.

Expected overhead cost and related data for the two production departments follow.

1. Determine the plantwide overhead rate for Laval using direct labor hours as a base.

2. Determine the total manufacturing cost per unit for the aluminum desk lamp using the plantwide overhead rate.

3. Compute departmental overhead rates based on machine hours in the fabricating department and direct labor hours in the assembly department.

4. Use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps.

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Question 2

Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and round “Cost per unit and OH rate” answers to 2 decimal places.)

Additional production information concerning its two product lines follows.

1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line.

2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $190 for Model 145 and $120 for Model 212.

3. If the market price for Model 145 is $758 and the market price for Model 212 is $500, determine the profit or loss per unit for each model.

Question 3

Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow.

1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders.

2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $210 for Model 145 and $120 for Model 212.

3. If the market price for Model 145 is $1,700 and the market price for Model 212 is $320, determine the profit or loss per unit for each model.

Question 4

Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow.

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