• May 14, 2022
• David Marks
• 0

# AC 420 Unit 2 Assignment

Tamra Corp. makes one product line. In February 2013, Tamra paid \$530,000 in factory overhead costs. Of that amount, \$124,000 was for January’s factory utilities and \$48,000 was for property taxes on the factory for the year 2013.
February’s factory utility bill arrived on March 12, 2013, and was only \$81,000 because the weather was significantly milder than in January. Tamra Corp. produced
50,000 units of product in both January and February 2013,
2-37
Joe Reynolds painted four houses during Apri2013. For these jobs, he spent \$2,400 on paint, \$160 on mineral spirits, and \$300 on brushes. He also bought two pairs of coveralls for \$100 each; he wears coveralls only while he works. During the first week of April, Reynolds placed a \$200 ad for his business in the classifieds. He hired an assistant for one of the painting jobs; the assistant was paid \$25 per hour and worked 50 hours. Being a very methodical person, Reynolds kept detailed records of his mileage to and from each painting job. The average operating cost per mile for his van is \$0.70. He found a \$30 receipt in his van for a metropolitan map that he purchased in April. He uses the map as part of a contact file for referral work and for bids that he has made on potential jobs. He also had \$30 in receipts for bridge tolls (\$2 per trip) for a painting job he completed across the river. Near the end of April, Reynolds decided to go camping, and he turned down a job on which he had bid \$6,000. He called the homeowner long distance (at a cost of \$2.20) to explain his reasons for declining the job. Using the following headings, indicate how to classify each of the April costs incurred by Reynolds. Assume that the cost object is a house-paint job.
2-41
Mason Company’s cost structure contains a number of different cost behavior patterns. Following are descriptions of several different costs; match these to the appropriate graphs. On each graph, the vertical axis represents cost, and the horizontal axis represents level of activity or volume. Identify, by letter, the graph that illustrates each of the following cost behavior patterns. Each graph can be used more than once. A B C E F G H I J K L D.
At year-end 2013, Dub’s Wind Generator Co. had a \$40,000 debit balance in its Manufacturing Overhead Control account. Overhead is applied to products based on direct labor cost. Relevant account balance information at year-end follows:
Pete’s Plant Stands manufactures wooden stands used by plant nurseries. In May 2013, the company manufactured 18,000 and sold 16,560 stands. The cost per unit for the 18,000 stands produced was as follows:

### David Marks

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