The Perry Como Company makes two products Product A and Product B Annual

The perry como company makes two products product a

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6.The Perry Como Company makes two products: Product A and Product B. Annual production and salesare 2,000 units of Product A and 1,600 units of Product B. The company has traditionally used directlabor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.40direct labor hours per unit and Product B requires 0.50 direct labor hours per unit. The total estimatedoverhead for next period is $132,880.The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overheadactivity cost pools--Activity 1, Activity 2, and General Factory--with estimated overhead costs and expected activity as follows:Expected ActivityActivity Cost PoolEstimatedOverheadCostsProduct AProduct BTotalActivity 1$46,400 2,100 800 2,900 Activity 220,880 2,000 320 2,320 General Factory65,600 600 960 1,560 Total$132,880 (Note: The General Factory activity cost pool's costs are allocated on the basis of direct labor hours.)The predetermined overhead rate under the traditional costing system is closest to: (Round your final answer to 2 decimal places.) $9.00.$42.05.$83.05.$16.00.
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7.Zela Company is preparing its annual profit plan. As part of its analysis of the profitability of individualproducts, the controller estimates the amount of overhead that should be allocated to the individualproduct lines from the information provided below.Wall MirrorsSpeciality WindowsUnits produced150 130 Material moves per product line16 26 Direct labor hours per product line2,400 3,380 Budgeted material handling costs: $578,000Under a traditional costing system that allocates overhead on the basis of direct labor hours, thematerials handling costs allocated to one unit of wall mirrors would be:
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8.The Usury National Bank is considering either a bankwide overhead rate or department overhead ratesto allocate $120,000 of indirect costs. The bankwide rate could be based on either direct labor hours(DLH) or the number of loans processed. The departmental rates would be based on direct labor hoursfor Consumer Loans and a dual rate based on direct labor hours and the number of loans processed forCommercial Loans. The following information was gathered for the upcoming period:DepartmentDLHLoans ProcessedDirect CostsConsumer7,500 300 $72,000 Commercial5,000 75 $72,000 If Usury uses a bankwide rate based on the number of loans processed, what would be the total costs forthe Consumer Department?
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