Ryan fabrication allocates manufacturing overhead to

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33) Ryan Fabrication allocates manufacturing overhead to each job using departmentaloverhead rates. Ryan's operations are divided into a metal casting department and a metalfinishing department. The casting department uses a departmental overhead rate of $52per machine hour, while the finishing department uses a departmental overhead rate of $28per direct labor hour. Job A216 used the following direct labor hours and machine hours inthe 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 the departmentaloverhead rates?A) $544B) $596C) $1,360D) $454Answer:Explanation:A) Casting Dept $52 × 4 machine hrs=208.00Finishing Dept. $28 × 12 direct hrs=336.00Total544.00ADiff: 1
LO:4-1EOC:E4-22AAACSB:Analytical ThinkingLearning Outcome:Compare a traditional cost allocation system to an activity basedcosting system
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34) Ryan Fabrication allocates manufacturing overhead to each job using departmentaloverhead rates. Ryan's operations are divided into a metal casting department and a metalfinishing department. The casting department uses a departmental overhead rate of $52per machine hour, while the finishing department uses a departmental overhead rate of $28per direct labor hour. Job A216 used the following direct labor hours and machine hours inthe 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.What was the total cost of Job A216 if Ryan Fabrication used the departmental overheadrates to allocate manufacturing overhead?C
Diff: 2LO:4-1EOC:E4-22AAACSB:Analytical ThinkingLearning Outcome:Compare a traditional cost allocation system to an activity basedcosting system
35) 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. The bagscome in three sizes: Large, Medium, and Small. Currently, Cooper's Bags Company uses asingle plant-wide overhead rate to allocate its $8,088,000 of annual manufacturingoverhead. Of this amount, $2,210,000 is associated with the Large Bag line, $3,418,800 isassociated with the Medium Bag line, and $2,459,200 is associated with the Small Bag line.Cooper's Bags Company is currently running a total of 40,000 machine hours: 13,000 in theLarge Bag line, 15,400 in the Medium Bag line, and 11,600 in the Small Bag line. Cooper'sBags Company uses machine hours as the cost driver for manufacturing overhead costs.The plant-wide manufacturing overhead rate would be closest toDDiff: 1
LO:4-1EOC:E4-22AAACSB:Analytical ThinkingLearning Outcome:Compare a traditional cost allocation system to an activity basedcosting system

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Term
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Tags
AACSB, overhead rate, traditional cost allocation
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Financial and Managerial Accounting Using Excel for Success
The document you are viewing contains questions related to this textbook.
Chapter 17 / Exercise EX 17–9
Financial and Managerial Accounting Using Excel for Success
Reeve/Warren
Expert Verified

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