15. The overhead cost per unit of Product A under the activity-based costing system is closest to: a. $67.66 b. $21.94 c. $48.23 d. $41.55 3 Use the following information to answer questions 16 and 17. Harrison Co produces two products, AB and XY. Information about the current period's production is as follows: AB XY Units Produced 50.000 65,000 Prime Cost $750.000 $650,000 Machine Hours 30.000 60.000 Harrison uses a plantwide rate of 54.00 per machine hour to apply overhead to production. Budgeted overhead was $392,000 but actual overhead was $376,000 16. How much of Harrison Company's overhead was appied to product AB? a. $130,000 b. $195,000 c. $120,000 d. $187,500 17. What was Harrison Company's total cost to produce product XY? a $650,000 b. $910,000 C. $900,000 d. $890,000 Use the following information to answer questions 18 and 19. Buchanan Manufacturing uses an activity-based cost system. The company produces Model A and Model D. Information relating to the two products is as follows: Model A Model Units Produced 20.000 40,000 Machine Hours 8,000 10,000 Direct Labor Hours 14 000 16,000 Engineering Labor (Hours) 1.000 1,400 Setups 40 60 The following costs are reported: Engineering $96,000 Setups 200.000 Machine-related Overhead 288,000 18. Buchanan Manufacturing's pool rate for engineering is a $68.58 b. $57.00 c. $50.00 d. $40.00 19. Buchanan Manufacturing's pool rate for setups is a $2.240 b. $2,000 c. $1,760 d. $1,680 _20. Ekcer Company uses activity-based costing to compute product costs for external reports. The company has three activity cost pools and applies overhead using predetermined overhead rates for each activity cost pool. Estimated costs totaled $40,000 and expected activity equals 2.500 for this activity cost pool Actual activity for the current year was 2.490. The amount of overhead applied for this activity during the year was closest to a. $36,300 D. $39.840 c. $40,000 d. $96.190 21. In a job-order cost system, a. A traditional approach to overhead is required. b. Activity-Based costing must be used to apply overhead c. Overhead is treated as a period cost d. Either a functional or an activity-based cost approach to OH can be used 22. Which entry is recorded when materials are moved from storeroom to production? a. Debit Work in Process and Credit Raw Materials b. Debit Raw Materials and Credit Work in Process c. Debit Manufacturing Overhead and Credit Raw Materials d. Debit Materials Expense and Credit Raw Materials 23. The entry to record the completion of goods would be a. Debit Work in Process and Credit Finished Goods b. Debit Overhead Control and Credit Finished Goods c. Debit Cost of Goods Sold and Credit Work in Process d. Debit Finished Goods and Credit Work in Process 24. The underappled overhead is eliminated with which of the following entries? a Debit Cost of Goods Sold and Credit Manufacturing Overhead b. Debit Manufacturing Overhead and Credit Underapplied Overhead c. Debit Cost of Goods Sold and Credit Underapplied Overhead. d. Debit Net Income and Credit Cost of Goods Sold 25. If overhead was overapplied. a. Actual overhead costs exceed applied overhead b. Actual overhead costs exceed budgeted overhead c. Applied overhead exceeds actual overhead costs. d. Budgeted overhead exceeds actual overhead costs. 26. The Bobkim Company uses a predetermined overhead rate of S4 per direct labor hour to apply overhead. During the year, 30,000 direct labor hours were worked. Actual overhead costs for the year were $110,000. Bobkim's overhead variance would be? a $2.500 Underapplied b. $2,500 Overapplied c. $10,000 Underapplied d. $10,000 Overapplied