70.2K

Verified Solution

Link Copied!

Space Manufacturing produces surfboarde. The curricany uses a normal costing system and allocale manufacturing overhead on the basis of direct manufacluring labur hours. Most of the company's production and sales occur in the fret and second quarter of the year. The curpany is in danger of losing one of its larger cuelurere, Sobea Wholesale, due to large fluctualions in prica. The Unter of Spade has reques.ed an analysis of the manufacturing cusl per unit in the second and third quarters. You have been provided the following budgeted information for the curring year Click the icon to view the budgeted information) A Click the icon to view additional information Rand the requirements Requirement 1 and 2. Calculate the total manufacturing cost per unit for the second and third quarter assuming the company allocates manufacturing overhead costs based on the budgeted manufacturing overhead rate determined for each quarter and an annual budgeted manufacturing overheed rate First identity the formula to calculate the total menufacturing cost par unt, than enter the sporopriate amounts to calculate the total cost per un for second and third quarter based on the budgeted manufacturing overhead rate determined for each cuarter and an annual budgeted manufacturing overhead rate for the year Abbreviation usad: OH = overteed, mat = materials and Var = vareble) Total cost = per unit - X Otr 2 Data Table | + + + + 1 - 1 1- JEL - Cr3 Annual Quarter 1 2 4 3 530 Surfboards manufactured and sold 800 825 145 Requirements Print Done 1. 2. More Info Calculate the total menufacturing cost per unit for the second and third quarter seuring the company locates manufacturing overtcad costs based on the budgeted manufacturing overhead rate determined for each querter. Calculate the total manufacturing cost per unit for the second and third quarter assuring the company alocates manufacturing overhead costs based on an annual budgeted manufacturing Dverhead rate. Soad Manufacturing prices its surfboards at ranufacturing coet plus 20%. Why might Sobta Wholesale be seeing large fluctuations in the prices of boards? Which of the methods described in requirements 1 and 2 would you recommend Spode use? Explain 3. It lakes 1 direct manufacturing labor hour lurake each board. The actual direct material cust is $8.00 per board. The actual cirect manufacturing labor rate is $22 per hour. Tha bucgated variable manufacturing overhead rate is $15 par direct manufacturing labor hour. Budgeted fixed manufacturing overhead costs are $16.500 each quarter Print Done Print Done Help Me Solve This e Text Pages Get More Help

Answer & Explanation Solved by verified expert

See Answer