1.Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:

Total machine-hours		32,500
Total fixed manufacturing overhead cost	$	455,000
Variable manufacturing overhead per machine-hour	$	5

Recently, Job T687 was completed with the following characteristics:

Number of units in the job		10
Total machine-hours		40
Direct materials	$	710
Direct labor cost	$	1,420

The amount of overhead applied to Job T687 is closest to: (Round your intermediate calculations to 2 decimal places.)

2.Adelberg Corporation makes two products: Product A and Product B. Annual production and sales are 875 units of Product A and 800 units of Product B. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.8 direct labor-hours per unit and Product B requires 0.5 direct labor-hours per unit. The total estimated overhead for next period is $129,400.

The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools--Activity 1, Activity 2, and General Factory--with estimated overhead costs and expected activity as follows:

			Expected Activity
Activity Cost Pool	Estimated Overhead Costs		Product A	Product B	Total
Activity 1	$	54,180	1,400	700	2,100
Activity 2		35,400	1,300	700	2,000
General Factory		39,820	700	400	1,100
Total	$	129,400

(Note: The General Factory activity cost pool's costs are allocated on the basis of direct labor-hours.)

The overhead cost per unit of Product B under the activity-based costing system is closest to:

Multiple Choice

• $43.50

• $51.30

• $22.50

• $56.16

Garrison 16e Rechecks 2017-06-28

Multiple Choice

• $760.00

• $455.00

• $875.60

• $152.00