Bonita Company manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for two levels of production.

Bonita Company manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for two levels of production.

		Costs Incurred
Production in Units		5,000				10,000
Production Costs		Total Cost		Cost/Unit		Total Cost		Cost/Unit
Direct materials		$8,000		$1.60		$16,000		$1.60
Direct labor		9,500		1.90		19,000		1.90
Utilities		2,000		0.40		3,300		0.33
Rent		4,000		0.80		4,000		0.40
Maintenance		800		0.16		1,400		0.14
Supervisory salaries		1,000		0.20		1,000		0.10

(b)

Classify each cost above as either variable, fixed, or mixed.

Production Costs
Direct materials		Variable Mixed Fixed
Direct labor		Mixed Variable Fixed
Utilities		Variable Mixed Fixed
Rent		Mixed Fixed Variable
Maintenance		Mixed Variable Fixed
Supervisory salaries		Fixed Variable Mixed

Family Furniture Corporation incurred the following costs.

Identify the costs as variable, fixed, or mixed.

1.		Wood used in the production of furniture.		Variable Fixed Mixed
2.		Fuel used in delivery trucks.		Mixed Variable Fixed
3.		Straight-line depreciation on factory building.		Mixed Fixed Variable
4.		Screws used in the production of furniture.		Fixed Mixed Variable
5.		Sales staff salaries.		Fixed Mixed Variable
6.		Sales commissions.		Mixed Fixed Variable
7.		Property taxes.		Fixed Mixed Variable
8.		Insurance on buildings.		Mixed Variable Fixed
9.		Hourly wages of furniture craftsmen.		Variable Fixed Mixed
10.		Salaries of factory supervisors.		Mixed Fixed Variable
11.		Utilities expense.		Variable Mixed Fixed
12.		Telephone bill.		Variable Fixed Mixed

Amanda Company reports the following total costs at two levels of production. Classify each cost as variable, fixed, or mixed.

Amanda Company reports the following total costs at two levels of production.

Classify each cost as variable, fixed, or mixed.

		5,000 Units		10,000 Units
Indirect labor		$ 3,000		$ 6,000		Fixed Costs Mixed Costs Variable Costs
Property taxes		7,000		7,000		Fixed Costs Mixed Costs Variable Costs
Direct labor		28,000		56,000		Fixed Costs Mixed Costs Variable Costs
Direct materials		22,000		44,000		Fixed Costs Mixed Costs Variable Costs
Depreciation		4,000		4,000		Fixed Costs Mixed Costs Variable Costs
Utilities		5,000		8,000		Fixed Costs Mixed Costs Variable Costs
Maintenance		9,000		11,000		Fixed Costs Mixed Costs Variable Costs

Monthly production costs in Dilts Company for two levels of production are as follows.

Cost		2,000 Units		4,000 Units
Indirect labor		$10,000		$20,000
Supervisory salaries		5,000		5,000
Maintenance		4,000		6,000

Indicate which costs are variable, fixed, and mixed.

Indirect labor		Fixed Mixed Variable
Supervisory salaries		Fixed Mixed Variable
Maintenance		Fixed Mixed Variable

Marquis Company estimates that annual manufacturing overhead costs will be $900,000. Estimated annual operating activity bases are direct labor cost $500,000

Marquis Company estimates that annual manufacturing overhead costs will be $900,000. Estimated annual operating activity bases are direct labor cost $500,000, direct labor hours 50,000, and machine hours 100,000.

Compute the predetermined overhead rate for each activity base. (Round answers to 2 decimal places, e.g. 10.50.)

Overhead rate per direct labor cost			%
Overhead rate per direct labor hour		$
Overhead rate per machine hour		$

For Eckstein Company, the predetermined overhead rate is 130% of direct labor cost. During the month, Eckstein incurred $100,000 of factory labor costs, of which $85,000 is direct labor and $15,000 is indirect labor. Actual overhead incurred was $115,000.

Your answer is correct. Compute the amount of manufacturing overhead applied during the month. Manufacturing overhead applied

Your answer is correct. Determine the amount of under- or overapplied manufacturing overhead. Underapplied Overapplied  manufacturing overhead $