# Michael co expects overhead costs of 60000 per month

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12)Michael & Co. expects overhead costs of \$60,000 per month and direct production costsof \$24 per unit. The estimated production activity for the current accounting period is asfollows:1st Quarter2nd Quarter3rd Quarter4th QuarterUnits produced11,5009,0008,25011,250The predetermined overhead rate based on units produced is:(Round the answer to 2decimal places.)12)A)\$18.00 per unit.B)\$2.67 per unit.C)\$42.00 per unit.D)\$1.50 per unit.
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13)Performance Bicycle Company makes steel and titanium handlebars for bicycles. Itrequires approximately one hour of labor to make one handlebar of either type. Duringthe most recent accounting period, Barr Company made 7,000 steel bars and 3,000titanium bars. Setup costs amounted to \$84,000. One batch of each type of bar was runeach month. If a single companywide overhead rate based on direct labor hours is used toallocate overhead costs to the two products, the amount of setup cost assigned to thesteel bars will be:13)
15)Which type of cost driver is most appropriate for automated processes?15)
16)Which of the following allocation bases for automation costs would be an improvementover direct labor hours?A)Machine hoursB)Number of units soldC)Direct material costD)Direct labor costs16)
17)Hazel Company allocates overhead based on direct labor hours. It allocates overheadcosts of \$8,000 to two different jobs as follows:Job 1: (10 hours) = \$4,000; Job 2: (10 hours) = \$4,000The production process for Job 2 was then automated. Now Job 2 requires only twohours of direct labor but four hours of mechanical processing. As a result, total overheadincreases to \$12,000. Select theincorrectstatement from the following.

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Term
Fall
Professor
O'HAVER
Tags
Cost driver