1. LO 6.1 Active Frame, Inc., manufactures clear and tinted sport glasses. The manufacturing of clear glasses takes 45.000 direct labor hours and involves 1,700 parts and 115 inspections. The manufacturing of tinted glasses takes 115,000 direct labor hours and involves 1,400 parts and 450 inspections. The traditional method applies 5560,000 of overhead on the basis of direct labor hours. What is the amount of overhead per direct labor hour applied to the clear glass products? A $933.33 B. $157,500 C. $322.500 D. 400.500 2. LO 6.1 Tye Dye Lights makes two products: Party and Holiday. It takes 80,900 direct labor hours to manufacture the Party Line and 93,500 direct labor hours to manufacture the Holiday Line Overhead consists of $225,000 in the machine setup cost pool and $149,960 in the packaging cost pool. The machine setup pool has 52,000 setups for the Party product and 98.000 setups for the Holiday product. The packaging cost pool has 20,000 parts in the Party product and 39,200 parts for the Holiday product. Using the traditional cost method of direct labor hours, what is the predetermined overhead rate? A $1.50 per direct labor hour B. $2.15 per direct labor hour C. $2.30 per direct labor hour D. $3.80 per direct labor hour 3. LO 6.2 Which is not a step in analyzing the cost driver for manufacturing overhead? A identify the cost B. Identify non-value-added costs Canalyze the effect on manufacturing overhead D. identify the correlation between the potential driver and manufacturing overhead 4. LO 6.2 Overhead coats are assigned to each product based on A. the proportion of that product's use of the cost driver B. a predetermined overhead rate for a single cost driver C. price of the product D. machine hours per product 5. LO 13 Which of the following is a reason a company would implement activity-based costing? A. The cost of record keeping is high B. The additional data obtained through traditional allocation are not worth the cost C. They want to improve the data on which decisions are made D. A company only has one cost driver