1)Blackwelder Factory produces two similar products-small lamps and desk lamps. The total plant overhead budget is $680,000 with 511,000 estimated direct labor hours. It is further estimated that small lamp production will require 257,000 direct labor hours and desk lamp production will need 254,000 direct labor hours.

Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will Blackwelder Factory allocate to desk lamp production if actual direct hours for the period is 187,000.

a.$500,630

b.$934,545

c.$248,710

d.$431,290

2)Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below.

				Activity Cost							Activity Base
Procurement				$310,900							Number of purchase orders
Scheduling				$207,500							Number of production orders
Materials handling				$439,900							Number of moves
Product development				$768,300							Number of engineering changes
Production				$1,408,300							Machine hours
	Number of Purchase Orders			Number of Production Orders				Number of Moves			Number of Engineering Changes				Machine Hours			Number of Units
Disk drives	4,180			360				1,220			10				1,600			1,900
Tape drives	1,600			135				510			6				10,000			3,700
Wire drives	11,300			930				4,000			28				10,800			2,400

Determine the activity-based cost for each disk drive unit.

a.$756.69

b.$222

c.$18.2

d.$261.77

3)The Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below.

Product	Number of Units	Labor Hours Per Unit	Machine Hours Per Unit
Blinks	1,037	2	7
Dinks	1,985	4	8

All of the machine hours take place in the Fabrication department, which has an estimated overhead of $87,100. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $82,700.

The Ramapo Company uses a single overhead rate to apply all overhead costs. What would the single plantwide rate be if it was based on machine hours instead of labor hours?

a.$9.17 per machine hour

b.$5.87 per machine hour

c.$7.34 per machine hour

d.$16.88 per machine hour

4)Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below.

				Activity Cost							Activity Base
Procurement				$362,400							Number of purchase orders
Scheduling				$204,200							Number of production orders
Materials handling				$447,100							Number of moves
Product development				$753,900							Number of engineering changes
Production				$1,539,800							Machine hours
	Number of Purchase Orders			Number of Production Orders				Number of Moves			Number of Engineering Changes				Machine Hours			Number of Units
Disk drives	3,820			410				1,340			13				2,200			2,200
Tape drives	2,100			165				720			4				8,500			3,800
Wire drives	12,300			910				3,800			27				10,600			2,400

Determine the activity rate per production order for scheduling.

a.$137.51

b.$19.89

c.$244.04

d.$72.29

5)The Aleutian Company produces two products, Rings and Dings. They are manufactured in two departmentsFabrication and Assembly. Data for the products and departments are listed below.

Product	Number of Units	Labor Hours Per Unit	Machine Hours Per Unit
Rings	1,140	6	3
Dings	2,020	3	9

All of the machine hours take place in the Fabrication Department, which has an estimated overhead of $85,000. All of the labor hours take place in the Assembly Department, which has an estimated total overhead of $73,400.

The Aleutian Company uses departmental overhead rates. The Fabrication Department uses machine hours for an allocation base, and the Assembly Department uses labor hours.

What is the overhead cost per unit for Rings?

a.$50.13

b.$52.53

c.$45.96

d.$5.57