1) The total factory overhead for Landen Company is budgeted for the year at $675,000. Landen manufactures two drapery products: sheer curtains and insulated curtains. These products each require six direct labor hours (dlh) to manufacture. Each product is budgeted for 7,500 units of production for the year. Determine the factory overhead allocated per unit for insulated curtains using the single plantwide factory overhead rate.

a.$45.00

b.$90.00

c.$270.00

d.$15.00

2) Single plantwide factory overhead rate is calculated

a.contribution margin less fixed costs.

b.None of these choices are correct.

c.as total budgeted factory overhead divided by total budgeted plantwide allocation base.

d.as total budgeted plantwide allocation base divided by total budgeted factory overhead.

3) The total factory overhead for Simmons Company is budgeted for the year at $450,000 and divided into two departments: Fabrication $315,000 and Assembly $135,000. Simmons manufactures two products: chairs and tables. Each chair requires 1 direct labor hour in Fabrication and 3 direct labor hours in Assembly. Each table requires 3 direct labor hours in Fabrication and 6 direct labor hours in Assembly. Each product is budgeted for 3,750 units of production for the year.

Determine the departmental factory overhead rate for the Fabrication Department.

a.$4 per dlh

b.$21 per dlh

c.$84 per dlh

d.$42 per dlh

4) The total factory overhead for Rowland Company is budgeted for the year at $652,000 and divided into two departments: Fabrication $460,000 and Assembly $192,000. Rowland manufactures two products: treadmills and weight machines. Each treadmill requires 3 direct labor hours in Fabrication and 1 direct labor hour in Assembly. Each weight machine requires 2 direct labor hours in Fabrication and 5 direct labor hours in Assembly. Each product is budgeted for 4,000 units of production for the year.

Determine the total number of budgeted direct labor hours for the year in the Assembly Department.

a.4,000 dlh

b.22,000 dlh

c.20,000 dlh

d.24,000 dlh

5) The total factory overhead for Rowland Company is budgeted for the year at $652,000 and divided into two departments: Fabrication $460,000 and Assembly $192,000. Rowland manufactures two products: treadmills and weight machines. Each treadmill requires 3 direct labor hours in Fabrication and 1 direct labor hour in Assembly. Each weight machine requires 2 direct labor hours in Fabrication and 5 direct labor hours in Assembly. Each product is budgeted for 4,000 units of production for the year.

Determine the departmental factory overhead rate for the Fabrication Department.

a.$14.82

b.$23.00

c.$57.50

d.$11.50

6) The ____________________ uses different rates for each production department to allocate factory overhead costs to products.

a.activity-based costing (ABC) method

b.None of these choices are correct.

c.single plantwide factory overhead rate method

d.multiple production department factory overhead rate method