Posted by Anonymous on Friday, September 17, 2010 at 5:11pm.
Rocky Mountain Outfitters manufactures cowboy boots. Information related to a recent production period is as follows:
Estimated manufacturing overhead, 2004 $240,000
Estimated machine hours, 2004 12,000
Direct labor cost, September $ 8,000
Direct materials cost, September $5,000
Supervisors salary, September $3,000
Factory rent, September $1,800
Factory utilities, September $800
Indirect materials cost, September $2,000
Machine hours worked, September 400
During September, 500 pairs of boots were produced.
a. Using actual costing, what is the unit cost of one pair of boots produced during September?
b. Using normal costing, with machine hours as the activity base, what is the unit cost of one pair of boots produced during sept?
c. If normal costing is used was manufacturing overhead over- or underapplied during September.? by how much?
d. What might have caused the amount of overhead applied to be different from the actual amount?
e. Why would managers at rocky mountain choose to use normal costing rather than actual costing.
Answer this Question
Managerial Accounting - Help me on the author Garrison in managerial accounting ...
accounting - You have been asked to prepare a presentation for the next board of...
accounting - Alpine Bicycle Company manufactures mountain bikes. The following ...
Managerial accounting - I have homework in managerial accounting, textbook by ...
disease - what to do so that you do not get the rocky mountain spotted fever
acc 220 - Why does managerial accounting not want to follow the rules of ...
accounting - a. What type of information does managerial accounting provide?
English - What is the complete subject in the following sentence? The ...
Algebra - Use the Quadratic equation to determine the last day that cowboy hats ...
5th grade - Wha are the names of the smaller mountain ranges that make up the ...