Brief Exercises: 14-13 through 14-22
14-13: The Ace Company sells a single product, at a budgeted selling price per unit of $20. Budgeted fixed manufacturing cost for the
coming period are $10,000, while budgeted fixed marketing expenses for the period ar

Solution (10 min)
1. Determine the overhead costs per barrel of P5 and G23 using the current single cost driver system based on
machine-hours.
Total budgeted overhead cost
Machine-hours
Overhead cost per Machine-hour
Product
P5
G23
$480,000
10,000
$48.00

Exercise 11-34 Make or Buy; Continuation of Problem 7-28
Machine X
Annual fixed cost
Variable cost per switch
Supplier charge per switch =
Machine Y
$135,000
$0.65
$204,000
$0.30
$
2.00
Required
Solution
1. For machine X, what is the indifference point be

Exercise 8-26 Cost Classification
Requirement
Match each cost to the appropriate cost behavior pattern shown in the graphs (a) through (l). Any graph can
fit two or more patterns.
Solution
1. b
2. f
3. e
4. i
5. e
6. h
7. l
8. j
9. k
10. g
Exercise 8-33 C

Solution (30 min)
What is the total Cost of Job A?
September Direct materials requisitioned
September Direct labor cost
September Applied overhead
September 1 Work-in-process
TOTAL Cost Job A
Labor rate=
$65,000
$35,700
$27,300
$31,200
$159,200
predetermi

Exercise 9-38
Problem Information
Harold McWilliams owns and manages a general merchandise store in a rural
area of Virginia. Harold sells appliances, clothing, auto parts, and farming equipment, among a wide variety of
other types of merchandise. Because