Tacoma Accessories makes two laptop cases, Plastic and Leather, that require direct materials, direct labor, and overhead. The following data refer to operations expected for next quarter:  Plastic Leather TotalRevenue $ 630,000 $ 650,000 $ 1,280,000Direct material 330,000 410,000 740,000Direct labor 210,000 190,000 400,000Overhead:      Material handling overhead     288,600Fabrication overhead     480,000Tacoma uses a two-stage cost allocation system: It uses direct-material costs to allocate material handling overhead and direct-labor costs to allocate fabrication overhead costs.Required:Compute the material handling overhead rate for next quarter.Compute the fabrication overhead rate for next quarter.What is the total overhead allocated to the Plastic case next quarter?What is the total overhead allocated to the Leather case next quarter?

Dustin Plastics, Inc., manufactures plastic moldings for car seats. Its costing system utilizes two costcategories, direct materials and conversion costs. Each product must pass through Department A andDepartment B. Direct materials are added at the beginning of production. Conversion costs are allocatedevenly throughout production.Data for Department A for February 2012 are:Work in process, beginning inventory, 40% converted 200 unitsUnits started during February 600 unitsWork in process, ending inventory 100 unitsCosts for Department A for February 2012 are:Work in process, beginning inventory:Direct materials $200,000Conversion costs $200,000Direct materials costs added during February $2,000,000Conversion costs added during February $2,500,0004) What is the unit cost per equivalent unit of beginning inventory in Department A?A) $2,000B) $3,500C) $7,000D) $7,500

Presented here are Rook Company's monthly manufacturing cost data related to its tablet computer product.(a)Utilities for manufacturing equipment: $116,000(b)Raw materials (CPU, chips, etc.): $85,000(c)Depreciation on manufacturing building: $880,000(d)Wages for production workers: $191,000Enter each cost item in the following table, placing an "X" under the appropriate headings.Direct MaterialsDirect LaborFactory Overhead

he following information is available for Dakota Company: Product 1Product 2Sales$1,400,000$1,800,000Direct materials(200,000)(400,000)Direct labor(600,000)(600,000)Manufacturing overhead*   (500,000)   (500,000)Gross margin$   100,000$   300,000*allocated based on direct labor hoursDakota Company has decided to allocate its manufacturing overhead cost using activity-based costing. Manufacturing overhead will be allocated based on batch-level and product line manufacturing as follows: Total   Manufacturing   Overhead CostsProduct 1Product 2Batch-level manufacturing overhead$600,00020 batches60 batchesProduct line manufacturing overhead$400,00010 lines   40 lines    What is Dakota Company's gross margin for Product 1 using activity based costing?

Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $10; direct labor, $14; and incremental overhead $3. An outside supplier has offered to sell the product to Paxton for $32. Compute the net incremental cost or savings of buying the component.Multiple Choice$5.00 cost per unit.$3.00 savings per unit.$5.00 savings per unit.$0 cost or savings per unit.$3.00 cost per unit.

During its first month of operations, a manufacturer incurs the following costs in dollars related to activities within its factory:Direct materials costs $5,000Indirect materials $2,000Direct labor $15,000Indirect labor $3,000Factory rent $10,000Depreciation on factory equipment $8,000What are the manufacturer’s total product costs for the month?