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Chapter 3

 

3-35

 

3-35.  Compute the firms predetermined overhead rate for the year using each of the following common cost drivers

 

(a) machine hours

(b) direct-labor hours

(c) direct-labor dollars

 

 

2. Calculate the overapplied or underapplied overhead for the year using each of the cost drivers listed above.

 

 

 

3-38

 

3-38.  Suppose you are the controller for a company that produces handmade glassware

 

1. Choose a volume-based cost driver upon which to base the application of overhead.  Write a memo to the company president explaining your choice

 

 

 

2. Now you have changed jobs.  You ae the controller of a microchip manufacture that uses a highly automated production process.  Repeat the same requirements above

 

 

 

3-44

 

 

3-44.  Complete the T- accounts by computing the amounts indicated by a question mark

 

 

 

 

 

 

 

 

 

Chapter 4

 

Case 4-39

 

 

 

In order to provide cost data regarding the manufacture of leather belts in the Dallas Plant to the top management of Laredo Leather company, compute the following amounts for the month of October.

 

 

 

1. The equivalent units for material and conversion

 

 

 

2. The cost per equivalent unit of material and conversion

 

 

 

3. The assignment of production costs to the October 31 work-in-process inventory and to goods transferred out

 

 

 

4. The weighted-average unit cost of leather belts completed and transferred to finished goods. Comment on the company’s cost per belt used for planning and control

 

 

 

5. (a) By how much would Murray’s suggested manipulation lower the unit conversion        cost?

 

(b) What should Daley do

 

(c) Discuss this situation citing specific ethical standards for managerial accounting.