5htm10112011 115300 PM 12000 60000 48000 16800 Refer

5htm10112011 115300 pm 12000 60000 48000 16800 refer

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[10/11/2011 11:53:00 PM]$12,000$60,000$48,000$16,800Refer to Figure 4-8. If the number of machine hours is used toassign machine hour cost, determine the amount of machine hourcost to be assigned to Product X.AnswerCorrect FeedbackSUPPORTING CALCULATIONS:$60,000/2,500 = $24$24 ´500 = $12,000Incorrect FeedbackSUPPORTING CALCULATIONS:$60,000/2,500 = $24$24 ´500 = $12,00087. Multiple Choice: Figure 4-9WinterManufacturing has fo... QuestionFigure 4-9Winter Manufacturing has four categories of overhead. The fourcategories and expected overhead costs for each category for nextyear are listed as follows:Maintenance$255,000Materials handling125,000Setups30,000Inspection105,000Currently, overhead is applied using a predetermined overheadrate based upon budgeted direct labor hours. 100,000 direct laborhours are budgeted for next year.The company has been asked to submit a bid for a proposed job.The plant manager feels that obtaining this job would result in newbusiness in future years. Usually bids are based upon fullmanufacturing cost plus 10 percent.Estimates for the proposed job are as follows:Direct materials$15,000Direct labor (8,000 hours)$12,000Number of material moves100Number of inspections120Number of setups24Number of machine hours4,000The plant manager has heard of a new way of applying overheadthat uses cost pools and activity drivers. Expected activity for thefour activity drivers that would be used are:Machine hours60,000Material moves20,000Setups3,000Quality inspections12,000Points:10
Blackboard Learn[10/11/2011 11:53:00 PM]$41,200$30,400$30,000$20,800Refer to Figure 4-9. What is the amount of overhead allocated tothe proposed job if Winter Manufacturing uses direct labor hours asits only activity driver?AnswerCorrect FeedbackSUPPORTING CALCULATIONS:Overhead rate = ($255,000 + $125,000 + $30,000 +$105,000)/100,000 = $5.15/DLHOverhead allocated to proposed job = $5.15 ´8,000 = $41,200Incorrect FeedbackSUPPORTING CALCULATIONS:Overhead rate = ($255,000 + $125,000 + $30,000 +$105,000)/100,000 = $5.15/DLHOverhead allocated to proposed job = $5.15 ´8,000 = $41,20088. Multiple Choice: Figure 4-9WinterManufacturing has fo... QuestionFigure 4-9Winter Manufacturing has four categories of overhead. The fourcategories and expected overhead costs for each category for nextyear are listed as follows:Maintenance$255,000Materials handling125,000Setups30,000Inspection105,000Currently, overhead is applied using a predetermined overheadrate based upon budgeted direct labor hours. 100,000 direct laborhours are budgeted for next year.The company has been asked to submit a bid for a proposed job.The plant manager feels that obtaining this job would result in newbusiness in future years. Usually bids are based upon fullmanufacturing cost plus 10 percent.Estimates for the proposed job are as follows:Direct materials$15,000Direct labor (8,000 hours)$12,000Number of material moves100Number of inspections120Number of setups24Number of machine hours4,000The plant manager has heard of a new way of applying overheadthat uses cost pools and activity drivers. Expected activity for thefour activity drivers that would be used are:Machine hours60,000Material moves20,000Setups3,000Points:10
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