ACCT 346 Week 2 Homework Assignment

ACCT 346 Managerial Accounting - DeVry

Complete the three questions below and please be sure to show all of your calculation work along with the final answers:
1. Biltz Company uses a predetermined manufacturing overhead rate based on direct labor hours to allocate (apply) manufacturing overhead costs to jobs. During the year, the company actually incurred total manufacturing overhead costs of $582,000 and 135,000 direct labor hours were worked. The company originally estimated that it would incur $525,000 of manufacturing overhead during the year and that 150,000 direct labor hours would be worked. 
2.  The following account balances at the beginning of January were selected from the general ledger of Ocean City Manufacturing Company:
3.  Vintage Fun reproduces old-fashioned style roller skates and skateboards. The annual production and sales of roller skates is 950 units, while 1,750 skateboards are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Roller skates require 2.5 direct labor hours per unit, while skateboards require 1.25 direct labor hours per unit. The total estimated overhead for the period is $114,300. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it would have the following three activity cost pools: