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A company identified the following partial list of activities, costs, and activity drivers expected for the next year: 4. Activity Extrusion costs Handling costs Packaging

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A company identified the following partial list of activities, costs, and activity drivers expected for the next year: 4. Activity Extrusion costs Handling costs Packaging costs $83,600 $8,800 $40,500 Cost Driver Number batches made Number of orders filled Number of units made Production volume Batches made Orders filled Product A 750,000 units 200 batches Product B 600,000 units 750 batches 75 200 How much overhead in total will be assigned to the Product A line using activity based costing? a) b) c) d) e) $42,500.00 $132,900.00 $90,400.00 $66,000.00 $66,450.00 Use the information below for questions 5 Wall Nuts, Inc. produces paneling that requires two processes, A and B, to complete. Oak is the best-selling of all the many types of paneling produced. Information related to the 40,000 units of oak paneling produced annually is shown in the following table: $380,000 Direct materials Direct labor Department A (6,000 DLH x $25 per DLH) Department B (35,125 DLH x $16 per DLH) $150,000 $562,000 Machine Hours Department A Department B 24,000 MH 32,000 MH Wall Nuts' total expected overhead costs and related overhead data are shown below Department A 67,000 DLH 100,000 MH 170,000 DLH 80,000 MH Direct labor hours Machine hours Manufacturing overhead costs $600,000 $450,000 Use the data for Wall Nuts, Inc. to compute departmental overhead rates based on machine hours in Department A and machine hours in Department B a) $4.50 per MH in Dept A; $4.50 per MH in Dept B. b) $7.50 per MH in Dept A; $7.50 per MH in Dept. B c) $4.50 per MH in Dept A; $7.50 per MH in Dept B. d) $2.70 per MH in Dept A; $6.00 per MH in Dept B. e) s0.60 per MH in Dept A; $0.80 per MH in Dept B 5

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