1) The plantwide predetermined overhead rate using direct labour hours as the cost driver is $______ per direct labour house

2) Assume that the actual direct labour hours were 14,400 direct labour hours. If the company uses the plantwide rate, then the total applied overhead would be

3) Using the plantwide overhead rate, the total overhead applied to one unit of product AB is $________

4) If the company decided to use activity-based costing, then the overhead rate for Material Handling would be $___ per part

5) If the company decided to use activity-based costing, then the overhead rate for Assembly would be $____ per machine hour

6) If the company decided to use activity-based costing, then the overhead rate for finishing would be $___ per direct labour hour

7) Using the activity based costing system, the total overhead applied for all activities to one unit of Product AB is $_____

Next Page Page 5 of 9 (7 Questions, 10 Marks) Winslow Inc. manufactures monitors. Presently the company assigns overhead to each product using direct labour hours to calculate a plantwide rate. 39 The following information is available for the upcoming year: Estimated factory overhead Estimated direct labour hours $936,000 12,000 42 The company is considering implementing an activity-based costing system and has identified three activities. Resource drivers are used to assign costs to each activity. The following information about each activity is available: 45 Activity 48 Total Estimated Cost Driver Estimated Costs Driver Material handling $189,000 Parts 63,000 Assembly $495,000 Machine hours 55,000 Finishing $252,000 Direct labour hours 12,000 One of the models that the company produces uses the following resources: Prod. AB 32 Parts Machine hours Direct labour hours 5 2 MacBook Air 8 So FS F7 F9 $ 4 110 3 5 6 & 7 * a ( 9 O E R T Y U O TI G H J K L V R