10. Nichols, Inc., manufactures remote controls. Currently the company uses a p for allocating manufacturing o of cost all and their cost drivers: ant-wide rate The plant manager believes it is time to refine the method location and has the accounting department identify the primary production activities Activities Cost driver Number of parts Labor hours Time at inspection station Allocation Rate $2 per part $20 per hour $3 per minute Material handling Assembly Inspection What are the indirect manufacturing costs per remote control assuming an activity-based- costing method is used and a batch of 50 remote controls are produced? The batch r 100 parts, 6 direct manufacturing labor hours, and 2.5 minutes of inspection time. equires a. $4.00 per remote control b. $6.55 per remote control c. $24.00 per remote control d. $327.50 per remote control 11. Framingham Company, which uses labor hours to apply overhead to manufacturing, may have increased amounts of underapplied manufacturing overhead at month-end if a. Suppliers of direct materials have an across-the-board price increase b. The company terminates two production supervisors C. The union representing direct labor negotiates a 4% pay increase, effective retroactively to the beginning of the year d. An unexpected blizzard closed the factory for three days 12. Lexington, Inc. has developed the following production budget for one of its products for the second quarter of the year Month April Ma June Production 15,400 12000 Each unit takes 4 pounds of material 256, which costs $3 per pound. Lexington, Inc. has 1,600 pounds of material on hand March 30th and wants an ending inventory of material 256 at 5 percent of the next month's production. Production in July is expected to be 12,000 units. How much material 256 needs to be purchased in May and at what cost? A. 62,280, $186,840 B. 60,920, $182,760 C. 64,000, $192,000 D. 61,600, $184,800