\begin{tabular}{l} Questions \\ 1. As can be seen from the allocation charts, the allocations based on \\ direct labor-hours and direct labor costs are the same. Why will this \\ always be the case for Kilbourne Appliances? \\ \hline 2 Which of the following is not a piece of information that would assist in \\ determining the preferable allocation base? \\ \hline 3 What is the predetermined overhead rate based on direct labor-hours? \\ \hline 4.Whatisthepredeterminedoverheadratebasedondirectmaterialcosts? \\ \hline 5 What is the KA-15 product cost per unit based on machine-hours? \end{tabular} 1. As can be seen from the aliocation charts, the allocations based on direct labor-hours and direct labor costs are the same. Why will this always be the caso for Kilbourne Applances? 2. Which of the following is not a piece of information fhat would assist in determining the preferable aliocation base? 3. What is the predelermined owerhead rate based on direct labor-hours? 4 What is the predelermined overtiead rate basod on direct malenal costs? 5 What is the KA-15 product cost per unit based on machino-hours? Because the number of units produced of KA-15 is not equal to the number of units produced of KA-24. Because the wage rate is the same for both products. Because direct labor costs are lower than direct materkals cost. Because allocations based on direct labor hours and direct labor costs must always be the same for every company. 1. As can be seen from the allocation charts, the allocations based on direct labor-hours and direct labor costs are the same. Why will this always be the case for Kilbourne Appliances? 2. Which of the following is not a piece of information that would assist in determining the preferable allocation base? 3. What is the predetermined overhead rate based on direct labor-hours? 4. What is the predetermined overhead rate based on direct matenal costs? 5 What is the KA. 15 product cost per unit based on machine-hours? Answers 1 As can be seen from the allocation charts, the allocations based on direct labor-hours and direct labor costs are the same. Why will this a'ways be the case for Kilbourne Appliances? 2. Which of the following is not a piece of information that would assist in determining the preferable allocation base? 3. What is the predefermined overhead rate based on direct labor-hours? 4. What is the predetermined overhead rate basod on direct matenat costs? 5. What is the KA-15 product cost per unit based on machine-hours? Answers $238,60 $262.00 $269.80 $332.20 Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA.15 and the KA-24. Data on operations and costs for March follow. 1. As can be seen from the allocation charts, the aliocations based on. direct labor hours and direct labor costs are the samo. Why will tinis always be the case for Kibourne Applances? 2 Which of the following is not a piece of intormation that would assest in determining the pefocibble allocabion base? 3. What is the predelermined overhoed rate based con direct labor-hous? 4 What is the prodetermened overhoad rate basod on defect matenal costs? 5. What is the KA-15 product cost per unit based on machne-hours? Answers Whether a significant portion of the overhead is spent on inspecting materials. Whether a significant portion of the overhead is spent on supervision of labor. Whether a significant portion of the labor is used for a particular product (due to the kvel of skill required). Whether a significant portion of the overhead is spent at a specific time during the period
