Question
5. 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
5. 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 | 30,000 | |
Total fixed manufacturing overhead cost | $ | 252,000 |
Variable manufacturing overhead per machine-hour | $ | 2.10 |
Recently, Job T687 was completed with the following characteristics:
Number of units in the job | 10 | |
Total machine-hours | 30 | |
Direct materials | $ | 675 |
Direct labor cost | $ | 1,050 |
The estimated total manufacturing overhead is closest to:
6. Boesenhofer, Inc., manufactures and sells two products: Product N6 and Product N7. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated | Expected Activity | |||||
Activity Cost Pools | Activity Measures | Overhead Cost | Product N6 | Product N7 | Total | |
Labor-related | DLHs | $ | 345,060 | 2,100 | 5,000 | 7,100 |
Machine setups | setups | 128,534 | 600 | 800 | 1,400 | |
Order size | MHs | 107,598 | 4,100 | 3,800 | 7,900 | |
$ | 581,192 | |||||
The activity rate for the Machine Setups activity cost pool is closest to:
7. Vanvalkenburg, Inc., manufactures and sells two products: Product Q5 and Product J0. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated | Expected Activity | |||||
Activity Cost Pools | Activity Measures | Overhead Cost | Product Q5 | Product J0 | Total | |
Labor-related | DLHs | $ | 191,748 | 3,000 | 2,800 | 5,800 |
Production orders | orders | 70,536 | 300 | 500 | 800 | |
Order size | MHs | 295,592 | 4,300 | 4,500 | 8,800 | |
$ | 557,876 | |||||
The activity rate for the Order Size activity cost pool under activity-based costing is closest to:
8.Weirick, Inc., manufactures and sells two products: Product T8 and Product P4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated | Expected Activity | |||||
Activity Cost Pools | Activity Measures | Overhead Cost | Product T8 | Product P4 | Total | |
Labor-related | DLHs | $ | 121,100 | 6,000 | 3,000 | 9,000 |
Production orders | orders | 57,110 | 700 | 500 | 1,200 | |
Order size | MHs | 893,250 | 3,000 | 2,800 | 5,800 | |
$ | 1,071,460 | |||||
The total overhead applied to Product P4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
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