Acme Company has two manufacturing departments, P and Q, and applies manufacturing overhead using departmental rates based on direct labor hours (DLHs). Here are estimated overhead data for the current year: During the current month, Acme starts and completes Job 71. Direct materials used are $28,800 and direct labor used is $43,000. Job 71 uses 280 DLHs in Department P and 640 DLHs in Department Q. Acme uses the cost-plus pricing method to set selling prices. The markup is 60% of total manufacturing costs. What is Acme’s selling price for Job 71?

Acme Company uses process costing and has three sequential processing departments: Departments A, B, and C. During the current month, the balance of Department B’s beginning work in process (WIP) inventory is $14,800, which includes $7,100 of transferred in costs. During the month, direct material costs added are $15,200, conversion costs incurred are $19,300, and transferred-in costs are $31,500. The balance of Department B’s ending WIP inventory is $16,100. What is the journal entry to record the transfer of units from Department A to Department B during the current month?

Acme Company makes the following estimates for the upcoming year: total annual manufacturing overhead costs of $810,000, total annual direct labor hours of 25,000 hours, and total annual machine hours of 30,000 hours. Acme’s direct labor costs are $24 per hour. Which of the following overhead rates accurately reflects Acme’s expected overhead costs? 

Acme Company’s direct labor costs are 45% of its total conversion costs. During the current year, Acme’s direct material costs are $225,000 and its manufacturing overhead costs are $170,500. What are the company’s direct labor costs? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00).

The process of reasoning involves:

Acme Company makes the following estimates for the upcoming year: total annual manufacturing overhead costs of $810,000, total annual direct labor hours of 25,000 hours, and total annual machine hours of 40,000 hours. Acme’s direct labor costs are $36 per hour. Which of the following overhead rates accurately reflects Acme’s expected overhead costs?

Acme Company uses process costing and has three processing departments. During the month of May, the first department completes and transfers out 40,000 units to the second department. The total cost of the units transferred into the second department is $144,000, or $3.60 per unit. For purposes of computing the May 31 balance of the second department’s ending work in process inventory, the cost per equivalent unit of production with respect to transferred-in costs is $3.80. What is the best explanation for why the cost per equivalent unit of $3.80 is higher than the cost of the units transferred in of $3.60? 

A story line is simple enough to share with an audience if, generally, it can be:

Acme Company manufactures a single product called a widget. Each widget sells for $40. Acme is preparing a budget for Years 1 and 2. In Year 1, Acme expects to make and sell 2,000 widgets. Total manufacturing costs for Year 1 are budgeted at $32 per widget, including $24 of variable costs and $8 of fixed costs. In Year 2, Acme expects to make and sell 2,300 widgets, a 15% increase from Year 1. Which of the following sets of statements regarding Acme’s cost of goods sold, gross profit, and per-unit manufacturing costs in Year 2 is true?

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