ACG 2003 MOGOUL MANUFACTURING COMPANY

MOGOUL MANUFACTURING COMPANYa. Cost Assignment:Cost Assignment CategoriesSalary of V. P. of production divisionSalary of supervisor Department MSalary of supervisor Department NDirect materials cost Department MDirect materials cost Department NDirect labor cost Department MDirect labor cost Department NDirect utilities cost Department MDirect utilities cost Department NGeneral factorywide utilitiesProduction suppliesFringe benefitsDepreciationTotal CostsDept. M$Dept. NIndirect$200,00080,000$60,000300,000420,000240,000680,000120,00024,00036,00036,000138,000720,000$740,000 $ 1,184,000 $ 1,130,000Correct!Correct!Correct!b. Total Estimated Cost of Products:IndirectCostsSalary of VPSalary of VPGeneral utilitiesGeneral utilitiesProduction suppliesProduction suppliesFringe benefitsFringe benefitsDepreciationDepreciationTotal allocated costAllocationRateWeightof BaseMNc. Price per Unit:DepartmentTotal direct costTotal indirect costTotal production costsNumber of unitsCost per unitPrice2,0004,000Allocatedto Dept. MAllocatedto Dept. NGiven Data P04-17A:MOGOUL MANUFACTURING COMPANYAnnual CostsFinancial dataSalary of V. P. of production divisionSalary of supervisor Department MSalary of supervisor Department NDirect materials cost Department MDirect materials cost Department NDirect labor cost Department MDirect labor cost Department NDirect utilities cost Department MDirect utilities cost Department NGeneral factorywide utilitiesProduction suppliesFringe benefitsDepreciation$200,00080,00060,000300,000420,000240,000680,000120,00024,00036,00036,000138,000720,000Nonfinancial dataMachine hours Department MMachine hours Department N5,0001,000Part c. Assumptions:Units of Product M madeUnits of Product N made2,0004,000