[Question & Answer] Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company…..

kingsport containers company makes a single

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: uarter Second Third Fourth $200,000 $100,000 $. 50,000 $150,000 First Direct materials Direct labor Manufacturing overhead Total manufacturing costs (a) Number of units to be produced (b) Estimated unit product cost (a) ÷ (b) 120,000 60,000 30,000 90,000 240,000 216,000 204,000 $560,000 $376,000 $284,000 160,000 80,000 40,000 120,000 $ 3.50 $ 4.70 $ 7.10 $ Management finds the variation in quarterly unit product costs to be confusing and difficult to work with. 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? Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates i calculate the unit product cost for all units produced during the year

Struggling to find relevant content or pressed for time? – Don’t worry, we have a team of professionals to help you on
[Question & Answer] Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company…..
Get a 15% Discount on this Paper
Order Now

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 and difficult to work with. 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. Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates i calculate the unit product cost for all units produced during the year.

Expert Answer

kingsport containers company makes a single

Answer 1.

Variable Manufacturing Overhead per unit = $0.30

First Quarter:

Manufacturing Overhead = $240,000
Number of units produced = 160,000

Manufacturing Overhead = Variable Manufacturing Overhead per unit * Number of units produced + Fixed Manufacturing Overhead
$240,000 = $0.30 * 160,000 + Fixed Manufacturing Overhead
$240,000 = $48,000 + Fixed Manufacturing Overhead
Fixed Manufacturing Overhead = $192,000

So, Fixed Manufacturing Overhead per quarter is $192,000

Answer 2.

Quarter 4:

kingsport containers company makes a single

Number of units produced = 120,000
Fixed Manufacturing Overhead = $192,000
Variable Manufacturing Overhead per unit = $0.30

Manufacturing Overhead = $192,000 + 120,000*$0.30
Manufacturing Overhead = $228,000

Total Manufacturing Cost = Direct Materials + Direct Labor + Manufacturing Overhead
Total Manufacturing Cost = $150,000 + $90,000 + $228,000
Total Manufacturing Cost = $468,000

Unit Product Cost = Total Manufacturing Cost / Number of units produced
Unit Product Cost = $468,000 / 120,000
Unit Product Cost = $3.90

Answer 3.

kingsport containers company makes a single

Total Manufacturing Overhead for year = $240,000 + $216,000 + $204,000 + $228,000
Total Manufacturing Overhead for year = $888,000

Total Number of units produced for year = 160,000 + 80,000 + 40,000 + 120,000
Total Number of units produced for year = 400,000

Predetermined Overhead Rate = Total Manufacturing Overhead for year / Total Number of units produced for year
Predetermined Overhead Rate = $888,000 / 400,000
Predetermined Overhead Rate = $2.22

Total Manufacturing Cost for year = $560,000 + $376,000 + $284,000 + $468,000
Total Manufacturing Cost for year = $1,688,000

Total Number of units produced for year = 400,000

Unit Product Cost = Total Manufacturing Cost for year / Total Number of units produced for year
Unit Product Cost = $1,688,000 / 400,000
Unit Product Cost = $4.22

kingsport containers company makes a single

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
Sign up, place your order, and leave the rest to our professional paper writers in less than 2 minutes.
step 1
Upload assignment instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
s
Get personalized services with MyCoursebay
One writer for all your papers
You can select one writer for all your papers. This option enhances the consistency in the quality of your assignments. Select your preferred writer from the list of writers who have handledf your previous assignments
Same paper from different writers
Are you ordering the same assignment for a friend? You can get the same paper from different writers. The goal is to produce 100% unique and original papers
Copy of sources used
Our homework writers will provide you with copies of sources used on your request. Just add the option when plaing your order
What our partners say about us
We appreciate every review and are always looking for ways to grow. See what other students think about our do my paper service.
Other
GREAT
Customer 452813, June 25th, 2022
Technology
Great job on the paper!!
Customer 452885, December 14th, 2022
Medicine
Thank you for the great services
Customer 452635, April 24th, 2022
Career Development
Beautiful job
Customer 452901, April 16th, 2024
Human Resources Management (HRM)
You are greatly appreciated.
Customer 452701, October 17th, 2023
Strategic Management
Thanks for the help, really appreciate it
Customer 452821, June 26th, 2022
Human Resources Management (HRM)
Thanks for your support.
Customer 452701, May 10th, 2023
Other
Excellent
Customer 452813, September 11th, 2024
Human Resources Management (HRM)
Thanks for the paper. Hopefully this one will receive higher than a C and has followed all guidelines.
Customer 452701, November 16th, 2022
Other
NICE
Customer 452813, June 30th, 2022
Human Resources Management (HRM)
Perfect
Customer 452701, August 15th, 2023
Nursing
Writer went above and beyond. Can't believe how much work they put in for the price.
Customer 452707, July 10th, 2022
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Good News ! We now help with PROCTORED EXAM. Chat with a support agent for more information