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9-12 st for the company is The total estimated manufacturing overhead cost for the co $300,000 including $100,000 for the cost of quality testing estimated
9-12 st for the company is The total estimated manufacturing overhead cost for the co $300,000 including $100,000 for the cost of quality testing estimated number of direct labor hours is 5,000 and the company estimates that 25,000 components will be tested during the per y cuvity based costing, the overhead allocation for quality testing should: a. not include the $100,000 allocation to products b. be included in the company's plant-wide manufacturing overhead application rate of $60 per direct labor hour C. None of these answers is correct. d. Be $4.00 per component tested 10. Micro Management Products uses the number of parts to allocate certain overhead costs. During a year where estimated overhead is $75,000 and the number of estimated parts is 100,000, the overhead applied in a month when 8,250 parts are used would be: a. $1,100.00 b. $4,125.00 C. $8,250.00 d. $ 6,187.50 11. Cullman & Smith Parts, Inc., has a designated cost pool for the costs associated with the acquisition and handling of the raw materials. Under ABC, a likely allocation base to allocate such costs would be: a. direct labor hours b. machine hours C. direct labor dollars d. numbers of parts 12. Manufacturing overhead allocated using ABC will: a. always be higher than if a traditional allocation method is used b. always be lower than if a traditional allocation method is used c. generally be the same as when a traditional allocation method is used d. be more accurate and representative of resources consumed than a traditional allocation method
9-12
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