Question
Bressler Corporation uses activity-based costing to determine product costs for external financial reports. Activity rates computed at the beginning of the year are used to
Bressler Corporation uses activity-based costing to determine product costs for external financial reports. Activity rates computed at the beginning of the year are used to apply manufacturing overhead costs to products. The company has provided the following data concerning its activity-based costing system.
The data used to develop activity rates were:
| Activity Cost Pools | Estimated Overhead Cost | Expected Activity | |
| Machine related (machine-hours) | $332,800 | 16,000 | MHs |
| Batch setup (setups) | $1,580,500 | 29,000 | setups |
| General factory (direct labour-hours) | $305,600 | 16,000 | DLHs |
| The actual activity for the year was: | |||
| Actual Activity for the Year | |||
| Activity Cost Pools | Total | Product X | Product Y |
| Machine related (machine-hours) | 15,000 | 7,000 | 8,000 |
| Batch setup (setups) | 30,000 | 22,000 | 8,000 |
| General factory (direct labour-hours) | 15,000 | 12,000 | 3,000 |
| The actual total manufacturing overhead cost incurred for the year was $2,202,600. | ||||
| The activity rate computed at the beginning of the year for the batch setup activity cost pool is closest to: | ||||
| A.$54.50. | ||||
| B.$71.80. | ||||
| C.$74.00. | ||||
| D.$197.60. | ||||
| The actual total manufacturing overhead cost incurred for the year was $2,202,600. | ||||
| The total amount of overhead cost allocated to Product X during the year would be closest to: | ||||
| A.$1,209,450. | ||||
| B.$1,573,800. | ||||
| C.$1,580,000. | ||||
| D.$1,628,000. | ||||
| The actual total manufacturing overhead cost incurred for the year was $2,202,600. | ||||
| The credits to the Manufacturing Overhead control account during the year (prior to closing out the balance) would have totaled: | ||||
| A.$2,202,600. | ||||
| B.$2,218,050. | ||||
| C.$2,233,500. | ||||
| D.$2,249,700. | ||||
| The actual total manufacturing overhead cost incurred for the year was $2,202,600. | ||||
| The debits to the Manufacturing Overhead control account during the year (prior to closing out the balance) would have totaled: | ||||
| A.$2,202,600. | ||||
| B.$2,218,050. | ||||
| C.$2,223,500. | ||||
| D.$2,249,700. | ||||
| The actual total manufacturing overhead cost incurred for the year was $2,202,600. | ||||
| The manufacturing overhead for the year is underapplied or overapplied by: | ||||
| A.($15,450). | ||||
| B.$15,450. | ||||
| C.$30,900. | ||||
| D.($30,900). |
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Probability And Statistics For Engineering And The Sciences
Authors: Jay L. Devore
9th Edition
1305251806, 978-1305251809
