37. Seasonal Delights manufactures a wide variety of holiday and seasonal decorative items. Seasonal's activity-based costing overhead rates are:

Purchasing $350 per order

Storing $2 per square foot/days

Machining $100 per machine hour

Supervision $5 per direct labor hour

The Snow Man project involved three purchase orders, 4,000 square feet/days, 60 machine hours, and 30 direct labor hours. The cost of direct materials on the job was $19,000 and the direct labor rate is $30 per hour.

Instructions

Determine the total cost of the Snow Man project.

38. Heart Manufacturing Company makes specialty tools. In January, Heart incurs manufacturing costs of

$10,000,000 for direct materials, direct labor, and overhead. 20% of the total costs represents overhead applied. The overhead rate is $1 for every $2 of direct labor costs incurred. Inventory balances were:

	January 1	January 31
Raw materials	$300,000	$500,000
Work in process	600,000	400,000
Finished goods	400,000	200,000

At the end of January, there was $1,000 of overapplied overhead.

Instructions

Determine the cost of raw materials purchased in January.

Prepare a cost of goods manufactured schedule for January 2012.

Compute the cost of goods sold for January.

32. Sofa Manufacturing manufactures two models of its couch, the Mini and the Maxi. The Mini model requires 10,000 direct labor hours and the Maxi model requires 40,000 direct labor hours. The company produces 4,000 units of the Mini model and 1,000 units of the Maxi model each year. The company produces the Mini model in batch sizes of 200, while it produces the Maxi model in batch sizes of 100. The company expects to incur $180,000 of total setup costs this year. How much of the setup costs are allocated to the Mini model using ABC costing? A) $120,000 B) $90,000 C) $36,000 DO $150,000 33. Which of the following is not typical of traditional costing systems? A) Use of a single predetermined overhead rate B) Use of direct labor hours or direct labor cost to assign overhead. C) Assumption of correlation between direct labor and incurrence of overhead cost D) Use of multiple cost drivers to allocate overhead. 34. The costs that are easiest to trace directly to products are A) direct materials and direct labor. B) direct labor and overhead. C) direct materials and overhead. D) none of the above: all three costs are equally easy to trace to the product. 35. Activity-based costing is used by A) accounting firms. B) law firms. C) consulting firms. D all of the above 36. Mike Greer is studying for his accounting mid-term examination. S for Mike what he should know about management functions