ORIE 3150 Quiz _8 Fall 2009 answers

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

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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?
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ORIE 3150 Quiz _8 Fall 2009 answers - ORIE 3150 Name_ Open...

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