Exercise 2-11 (Algo) Varying Plantwide Predetermined Overhead Rates -L.docx
Exercise 2-11 (Algo) Varying Plantwide Predetermined Overhead Rates [LO2-1, LO2-2, LO2-3] Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below: Management finds the variation in quarterly unit product costs to be confusing. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly. you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product. Required: 1. Assuming the estimated variable manufacturing overhead cost per unit is $0.30 , what must be the estimated total fixed manufacturing overhead cost per quarter? 2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? 3. What is causing the estimated unit product cost to fluctuate from one quarter to the next? 4. Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year. Management finds the variation in quarterly unit product costs to be confusing. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly. you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product. Required: 1. Assuming the estimated variable manufacturing overhead cost per unit is $0.30 , what must be the estimated total fixed manufacturing overhead cost per quarter? 2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? 3. What is causing the estimated unit product cost to fluctuate from one quarter to the next? 4. Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates. calculate the unit product cost for all units produced during the year. Complete this question by entering your answers in the tabs below. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? (Do not round intermediate calculations and round the "Unit product cost" to 2 decimal places.) Management finds the variation in quarterly unit product costs to be confusing. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturin.
Exercise 2-11 (Algo) Varying Plantwide Predetermined Overhead Rates -L.docx
Exercise 2-11 (Algo) Varying Plantwide Predetermined Overhead Rates [LO2-1, LO2-2, LO2-3] Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below: Management finds the variation in quarterly unit product costs to be confusing. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly. you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product. Required: 1. Assuming the estimated variable manufacturing overhead cost per unit is $0.30 , what must be the estimated total fixed manufacturing overhead cost per quarter? 2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? 3. What is causing the estimated unit product cost to fluctuate from one quarter to the next? 4. Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year. Management finds the variation in quarterly unit product costs to be confusing. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly. you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product. Required: 1. Assuming the estimated variable manufacturing overhead cost per unit is $0.30 , what must be the estimated total fixed manufacturing overhead cost per quarter? 2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? 3. What is causing the estimated unit product cost to fluctuate from one quarter to the next? 4. Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates. calculate the unit product cost for all units produced during the year. Complete this question by entering your answers in the tabs below. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? (Do not round intermediate calculations and round the "Unit product cost" to 2 decimal places.) Management finds the variation in quarterly unit product costs to be confusing. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturin.
![Exercise 2-11 (Algo) Varying Plantwide Predetermined Overhead Rates [LO2-1, LO2-2, LO2-3]
Kingsport Containers Company makes a single product that is subject to wide seasonal variations
in demand. The company uses a job-order costing system and computes plantwide predetermined
overhead rates on a quarterly basis using the number of units to be produced as the allocation
base. Its estimated costs, by quarter, for the coming year are given below: Management finds the
variation in quarterly unit product costs to be confusing. It has been suggested that the problem
lies with manufacturing overhead because it is the largest element of total manufacturing cost.
Accordingly. you have been asked to find a more appropriate way of assigning manufacturing
overhead cost to units of product. Required: 1. Assuming the estimated variable manufacturing
overhead cost per unit is $0.30 , what must be the estimated total fixed manufacturing overhead
cost per quarter? 2. Assuming the assumptions about cost behavior from the first three quarters
hold constant, what is the estimated unit product cost for the fourth quarter? 3. What is causing
the estimated unit product cost to fluctuate from one quarter to the next? 4. Assuming the
company computes one predetermined overhead rate for the year rather than computing quarterly
overhead rates, calculate the unit product cost for all units produced during the year.
Management finds the variation in quarterly unit product costs to be confusing. It has been
suggested that the problem lies with manufacturing overhead because it is the largest element of
total manufacturing cost. Accordingly. you have been asked to find a more appropriate way of
assigning manufacturing overhead cost to units of product. Required: 1. Assuming the estimated
variable manufacturing overhead cost per unit is $0.30 , what must be the estimated total fixed
manufacturing overhead cost per quarter? 2. Assuming the assumptions about cost behavior from
the first three quarters hold constant, what is the estimated unit product cost for the fourth
quarter? 3. What is causing the estimated unit product cost to fluctuate from one quarter to the
next? 4. Assuming the company computes one predetermined overhead rate for the year rather
than computing quarterly overhead rates. calculate the unit product cost for all units produced
during the year. Complete this question by entering your answers in the tabs below. Assuming
the assumptions about cost behavior from the first three quarters hold constant, what is the
estimated unit product cost for the fourth quarter? (Do not round intermediate calculations and
round the "Unit product cost" to 2 decimal places.) Management finds the variation in quarterly
unit product costs to be confusing. It has been suggested that the problem lies with
manufacturing overhead because it is the largest element of total manufacturing cost.
Accordingly, you have been asked to find a more appropriate way of assigning manufacturing
overhead cost to units of product. Required: 1. Assuming the estimated variable manufacturing
overhead cost per unit is $0.30 , what must be the estimated total fixed manufacturing overhead
cost per quarter? 2. Assuming the assumptions about cost behavior from the first three quarters
hold constant, what is the estimated unit product cost for the fourth quarter? 3. What is causing
the estimated unit product cost to fluctuate from one quarter to the next? 4. Assuming the
company computes one predetermined overhead rate for the year rather than computing quarterly
overhead rates. calculate the unit product cost for all units produced during the year. Complete
this question by entering your answers in the tabs below. Assuming the company computes one
predetermined overiead rate for the year rather than computing quarterly overhead rates,
calculate the unit product cost for all units produced during the year. Note: Do not round
intermediate calculations and round your final answer to 2 decimal places.](https://image.slidesharecdn.com/exercise2-11algovaryingplantwidepredeterminedoverheadrates-l-230221010756-fd15fddd/75/exercise-211-algo-varying-plantwide-predetermined-overhead-rates-ldocx-1-2048.jpg?cb=1676943643)
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Exercise 2-11 (Algo) Varying Plantwide Predetermined Overhead Rates -L.docx
- 1. Exercise 2-11 (Algo) Varying Plantwide Predetermined Overhead Rates [LO2-1, LO2-2, LO2-3] Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below: Management finds the variation in quarterly unit product costs to be confusing. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly. you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product. Required: 1. Assuming the estimated variable manufacturing overhead cost per unit is $0.30 , what must be the estimated total fixed manufacturing overhead cost per quarter? 2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? 3. What is causing the estimated unit product cost to fluctuate from one quarter to the next? 4. Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year. Management finds the variation in quarterly unit product costs to be confusing. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly. you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product. Required: 1. Assuming the estimated variable manufacturing overhead cost per unit is $0.30 , what must be the estimated total fixed manufacturing overhead cost per quarter? 2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? 3. What is causing the estimated unit product cost to fluctuate from one quarter to the next? 4. Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates. calculate the unit product cost for all units produced during the year. Complete this question by entering your answers in the tabs below. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? (Do not round intermediate calculations and round the "Unit product cost" to 2 decimal places.) Management finds the variation in quarterly unit product costs to be confusing. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product. Required: 1. Assuming the estimated variable manufacturing overhead cost per unit is $0.30 , what must be the estimated total fixed manufacturing overhead cost per quarter? 2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? 3. What is causing the estimated unit product cost to fluctuate from one quarter to the next? 4. Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates. calculate the unit product cost for all units produced during the year. Complete this question by entering your answers in the tabs below. Assuming the company computes one predetermined overiead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year. Note: Do not round intermediate calculations and round your final answer to 2 decimal places.