# Which of the following is a result of cost distortion

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2.Which of the following is a result of cost distortion?A) Overcosting of all productsB) Undercosting of all productsC) Accurate costing of all productsD)Overcosting of some products and undercosting of other products
3.When calculating the total amount of manufacturing overhead to allocate to a particularjob, the company would multiply each departmental overhead rate by ________ and then________ together the allocated amounts from each department.
4.Ryan Fabrication allocates manufacturing overhead to each job using departmentaloverhead rates. Ryan's operations are divided into a metal casting department and ametal finishing department. The casting department uses a departmental overhead rateof \$52 per machine hour, while the finishing department uses a departmental overheadrate of \$28 per direct labor hour. Job A216 used the following direct labor hours andmachine hours in the two departments:Actual resultsCastingDepartmentFinishingDepartmentDirect labor hoursused512Machine hours used43The cost for direct labor is \$32 per direct labor hour and the cost of the direct materialsused by Job A216 is \$1,800.How much manufacturing overhead would be allocated to Job A216 using thedepartmental overhead rates?
5.Cooper's Bags Company manufactures cloth grocery bags to be sold to grocery storesand other retailers. Cooper's Bags Company sells the bags in cases of 1,000 bags. Thebags come in three sizes: Large, Medium, and Small. Currently, Cooper's Bags Companyuses a single plantwide overhead rate to allocate its \$8,088,000 of annual manufacturing
overhead. Of this amount, \$2,210,000 is associated with the Large Bag line, \$3,418,800is associated with the Medium Bag line, and \$2,459,000 is associated with the Small Bagline. Cooper's Bags Company is currently running a total of 40,000 machine hours:13,000 in the Large Bag line, 15,400 in the Medium Bag line, and 11,600 in the SmallBag line. Cooper's Bags Company uses machine hours as the cost driver formanufacturing overhead costs.The departmental manufacturing overhead rate for the Small Bag line would be closestto

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