23The following account balances at the beginning of January were selected from the general ledger of Crispy Chips Manufacturing Company:

Work in process inventory $5,980	$0
Raw materials inventory $2,320	$ 28400$28,400
Finished goods inventory $14,340	$ 40500$40,500

Additional data:

1. Actual manufacturing overhead for January amounted to $78,200

2. Total direct labor cost for January was $125,000

3. The predetermined manufacturing overhead rate is based on direct labor cost. The budget for the year called for $120,000 of direct labor cost and $78,000 of manufacturing overhead costs.

4. The only job unfinished on January 31 was Job No. 151, for which total direct labor charges were

$3,200 (16 direct labor hours) and total direct material charges were $1,720.

5. Cost of direct materials placed in production during January totaled $62,250

There were no indirect material requisitions during January.

6. January 31 balance in raw materials inventory was $3,100

7. Finished goods inventory balance on January 31 was $17,420

Has manufacturing overhead been overallocated or underallocated and by what amount as of January 31?

Overallocated by $200

Underallocated by $200

Underallocated by $3,250

Overallocated by $3,050

22. Vortex manufactures two sizes of ceramic paperweights, regular and jumbo. The following information applies to their expectations for the planning period:

Cost Pool Overhead Costs Activity-cost driver

Materials handling $ 45,000 90,000 orders

Machine maintenance $300,000 15,000 maintenance hours

Setups $270,000 45,000 setups

Inspections $105,000 21,000 inspections

Total support costs $720,000

Production Estimates

Production units:

Regular = 8,000,000 units

Jumbo = 16,000,000 units

Machine-hours = 200,000 mh

Labor-hours = 400,000 dlh

Vortex uses an ABC system and assigns overhead costs based on the overhead activity information provided above.

During October, Vortex produced 700,000 regular ceramic paperweights and Vortex's production manager counted 2,000 orders; 1,000 maintenance-hours; 2,000 setups; and 2,000 inspections for the regular product line. For October, Vortex's controller assigned ________ indirect costs to the regular product line.

		None of these answers are correct.
		$43,000
		$25,000
		$34,000

24.

Dulce De Leche Factory is a gourmet bakery where sweet delights are made. DDL makes birthday cakes, wedding cakes, and pastries. The cakes department incurred an annual amount of overhead of $72,840 and the pastries department incurred a total overhead of $45,775. The following information pertains to each unit:

	Birthday Cakes	Wedding Cakes	Pastries (Dozen)
Direct material	$20	$50	$5
Direct labor	$30	$75	$10
oven hours	0.75 hours	1 hour	0.5 hours/ dozen
labor hours	3 hours	8 hours	0.5 hours/ dozen
units produced	2,933	1,002	9155 dozens

Supposed DDL would like to start using departmental rates to allocate manufacturing overhead, and it has decided to use oven hours as the allocation base for the cake department and direct labor hours for the pastries department. How much would manufacturing overhead be for each birthday cake?

		$37.04
		$17.06
		$15.25
		$14.83

25.

The following cost information for Hedglin Company was gathered at the end of 2019:

Selling price $120 per unit

Variable costs $80 per unit

Total fixed costs $80,000

Tax rate 40%

What minimum volume of sales dollars is required to earn an after-tax net income of $30,000?

		$165,000
		$465,000
		$330,000
		$390,000

26.

Rock Manufacturing produced 10,000 units in 2019 and reported the following costs:

Sandpaper $32,000

Leasing costs-plant $ 384,000

Materials handling 320,000

Depreciation-equipment 224,000

Coolants & lubricants 22,400

Property taxes-equipment 32,000

Indirect manufacturing labor 275,200

Fire insurance-equipment 16,000

Direct manufacturing labor 2,176,000

Direct material purchases 3,140,000

Direct materials, 1/1/19 348,000

Direct materials, 12/31/19 280,000

Finished goods, 1/1/19 672,000

Sales revenue 12,800,000

Finished goods, 12/31/19 1,280,000

Sales commissions 640,000

Work-in-process, 1/1/19 96,000

Sales salaries 576,000

Work-in-process, 12/31/19 64,000

Advertising costs 480,000

Administration costs 800,000

Calculate the amount of conversion cost per unit.

		$592.16
		$652.96
		$348.16
		$668.96