Question
1a) BLT Corp. produces productsproduct BL and product LT. The overhead associated with materials handling is expected to be $720,000 and will be allocated based
1a) BLT Corp. produces productsproduct BL and product LT. The overhead associated with materials handling is expected to be $720,000 and will be allocated based on the number of different parts used to produce each product. Product BL requires 6 different parts and Product LT requires 12 different parts. The company expects to produce 8,000 units of Product BL and 2,000 units of Product LT. What overhead application rate will the company use to allocate the materials handling costs to the two products?
a. $40,000 per part for both products.
b. $72 per part for both products.
c. $10 per part for both products.
d. $15 per part for Product BL and $30 per part for Product LT.
e. $6,667 per part for Product BL and $3,333 per part for Product LT.
1b) A company allocated overhead associated with operating its machinery on the basis of machine hours. Machine related overhead is expected to be $90,000 and the company expects to use a total of 3,000 machine hours to produce 9,000 units of product A and a total of 1,000 machine hours to produce 3,000 units of product B. The rate used to apply the overhead related to machinery would be:
a. $22.50 per machine hour
b. $7.50 per machine hour
c. $60 per machine hour
d. $20 per machine hour
1c) The costs to manufacture Product XYZ consists of $8 of direct labor per unit, $10 of raw material per unit and $12 of factory overhead per unit. The company sells the product for $50 per unit. The gross profit on the sale of a unit would be:
a. $50 per unit
b. $20 per unit
c. $32 per unit
d. $38 per unit
e. $30 per unit
All 3 as they are under 1 question please! Thank you!!
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