2) CWN Company uses a job order costing system and last period incurred $80,000 of actual overhead and $100,000 of direct labor. CWN estimates that its overhead next period will be $75,000. It also expects to incur $100,000 of direct labor. If CWN bases applied overhead on direct labor cost, its predetermined overhead rate for the next period should be:

3) A company's beginning Work in Process inventory consisted of 20,000 units that were 20% complete with respect to direct labor. These beginning units were completed and another 90,000 units were started during the current period. Of those started, 60,000 were finished and the remaining 30,000 were 40% complete at the end of the period. Using the weighted-average method, the equivalent units of production with regard to direct labor were:

4) K Company estimates that overhead costs for the next year will be $2,900,000 for indirect labor and $800,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 80,000 direct labor hours are planned for this next year, what is the company's plantwide overhead rate?

5) Craigmont Company's direct materials costs are $3,000,000, its direct labor costs total $7,000,000, and its factory overhead costs total $5,000,000. Its prime costs total:

6) From an ABC perspective, what causes costs to be incurred?

a. Financial transactions

b.Debits and credits

c. The volume of units produced

d. Management decisions

e .Activities

Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. Process Activity Overhead Cost Driver Quantity S478,150 Number of batches 730 8,550 60 Machining Sctups 720 achine hours 11.000 Number of setups 985,870 Finishing Welding 317,350 360,000 54,000 731,350 Helding hours Number of inspectiona Rework ordere 5,500 900 200 Inapecting Rework 162,750 31,800 18,840 243, 390 Support Purchasing Providing apace Providing utilities Purchase orders Number of unita Numbe of units 525 4,200 4,200 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced Welding hours Batches Number of inepectiona Machine hours Setups Rework orders Purchase orders ,400 2,400 365 520 3,250 30 150 350 2,800 3,100 365 380 5,300 30 50 175 Required: 1. Using ABC, compute the overhead cost per unit for each product line. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $240 for Model 145 and $112 for Model 212. 3. If the market price for Model 145 is $931.82 and the market price for Model 212 is $466.98, determine the profit or loss per unit for each model