ORIE 3150 Quiz _8 Fall 2009 answers

# ORIE 3150 Quiz _8 Fall 2009 answers - ORIE 3150 Name Open...

This preview shows pages 1–2. Sign up to view the full content.

Name___________________________________________ Open Book/Notes Quiz Week of November 16, 2009 1. Gearloose Manufacturing has the following estimates for the next year for indirect and direct product costs: Item Amount (all are estimates) Supplies Expense \$94,000 Utilities Expense \$78,000 Janitorial Expense \$140,000 Packaging Expense \$80,000 Indirect Materials (fasteners, glue) \$24,000 Direct Materials Expenses \$310,000 Direct Labor Expenses \$670,000 a) Find the predetermined overhead cost driver rate to use for the year. The company uses direct labor hours as the cost driver, and estimates that direct labor cost is an average of \$18 per hour. Total OH = 94,000 + 78,000 + 140,000 + 80,000 + 24,000 = \$416,000 Total DLH = 670,000/18 = 37,222.2 hours Driver = 416,000/37,222.2 = \$11.18 per direct labor hour b) In January 2010, Gearloose Manufacturing builds a batch of 20 gearboxes for the Zapper electric car, which takes \$28,000 in direct materials, and \$19,000 (1000 hours) of direct labor. How much overhead expense would be charged to this batch?

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 10/07/2010 for the course ORIE 3150 taught by Professor Callister during the Fall '08 term at Cornell.

### Page1 / 3

ORIE 3150 Quiz _8 Fall 2009 answers - ORIE 3150 Name Open...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online