1) Rossi Manufacturing has decided to use specific cost pools to allocate its overhead costs. Rossi has identified the following information for the current year:

Estimated

Estimated Allocation

Overhead Pool Allocation Base Cost Base

Pool 1 - Storage Number of parts $150,000 600,000

Pool 2 - Design Number of production runs $100,000 50

Pool 3 - Production Number of machine hours $250,000 40,000

Pool 4 - Quality Number of components tested $ 75,000 100,000

Pool 5 - Security Number of direct labor hours $180,000 15,000

If each unit takes 3 machine hours and 2,500 hours are used this month, the overhead cost for pool 3 allocated this month is:

		$12.50
		$15,625.00
		$6.25
		$31,250.00

2)

Thomas, Inc. uses activity-based costing. The company produces two products, 001 and 002.

Estimated overhead costs for the year are:

Materials handling	$320,000
Labor-related overhead	960,000
Setups	600,000
Estimated activities for the year are:
Direct labor-hours		40,000
Materials handling (number of moves)		20,000
Setups		24,000

Information about the two products:

	001	002
Units produced	38,000	50,000
Direct labor-hours	16,000	24,000
Materials handling (number of moves)	8,000	12,000
Setups	10,000	14,000

Overhead per unit of 001 is?

		$21.50
		$19.50
		$.05
		$20.05

3)

Jones Inc. estimated that their manufacturing overhead would be $1,000,000 for 2013. They use machine hours as their cost driver and they estimated 250,000 machine hours for the year. Actual manufacturing overhead for 2013 was $1,075,000. If Job #457 uses 300 machine hours, how much will be allocated to the job?

		$1,200
		$1,290
		$1,920
		$12,000