1. Curly Manufacturing is estimating overhead of $600,000 for next year that is allocable to its deluxe and basic product lines.At the beginning of the year, they predicted the following activity levels of various potential cost drivers:

   	Deluxe	Basic	Total
   Units produced	15,000	45,000	60,000
   Machine hours	9,000	21,000	30,000
   Material moves	2,000	2,000	4,000
   Setups	600	400	1,000

   1. How much overhead cost is expected tobe allocated to the deluxeproduct line if machine hours is the chosen cost driver?

   2.How much overhead cost is expectedtobe allocated to thebasicproduct line if setups is the chosen cost driver?

   Enter only your final answer as a number with no commas, decimals, or dollar signs. Round any interim calculation to the nearest one/hundredth (2 decimals). Round your final answer to the nearest dollar.

1. Curly Manufacturing is estimating overhead of $600,000 for next year that is allocable to its deluxe and basic product lines. At the beginning of the year, they predicted the following activity levels of various potential cost drivers: Units produced Machine hours Material moves Setups Deluxe 15,000 9,000 2,000 600 Basic 45,000 21,000 2,000 400 Total 60,000 30,000 4,000 1,000 1. How much overhead cost is expected to be allocated to the deluxe product line if machine hours is the chosen cost driver? Blank 1 2. How much overhead cost is expected to be allocated to the basic product line if setups is the chosen cost driver? Blank 2 Enter only your final answer as a number with no commas, decimals, or dollar signs. Round any interim calculation to the nearest one/hundredth (2 decimals). Round your final answer to the nearest dollar. 8 points Question 4 1. Moe Manufacturing uses an activity-based cost system to assign overhead costs. At the beginning of the year, they predicted the following activity levels of various potential cost drivers: Units produced Machine hours Material moves Setups Deluxe 20,000 9,000 2,000 600 Basic 60,000 21,000 2,000 400 2. The following overhead costs are projected: 3. Material handling costs (use number of moves).... $ 80,000 Setups (use number of setups) ..........................$ 60,000 Machine-related costs (use machine hours) .......$300,000 Total projected overhead: ..................................$440,000 Total 80,000 30,000 4,000 1,000 4. A. What is the activity rate for the material moves pool? Blank 1 per move. 5. B. How much of the $440,000 overhead cost will be allocated to a job of 180 units that requires 2 setups, 50 machine hours and 10 material moves? Blank 2 6. Enter only your final answer as a number with no commas, decimals, or dollar signs. Round any interim calculation to the nearest one/hundredth (2 decimals). Round your final answer to the nearest dollar. 8 points Question 5 1. Sera Manufacturing uses an activity-based cost system. The following ABC rates have already been calculated. Overhead pools Pool A............ Pool B............ Pool C........... Activity rate $7 per direct labor hour $500 per setup $4 per machine hour Job 657H has the following inputs. o 40 direct labor hours (the direct labor rate is $20 per hour) o 30 pounds of materials (the material cost is $5 per pound) o 2 setups o 12 machine hours A. Enter the total amount of overhead applied to this job. Blank 1 B. Compute the total cost of the job, including overhead. Blank 2 Enter only your final answer as a number with no commas, decimals, or dollar signs. Round to the nearest dollar if needed. 7 points Question 6 1. The Overdale plant has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows: o Machine maintenance $120,000 o Inspection $200,000 o Total expected overhead: $320,000 (120,000 + 200,000 from above) Expected activity levels for the coming year are as follows: o 80,000 direct labor hours o 40,000 machine hours o 2,500 inspections The following data has been assembled for use in developing a bid for a proposed job: Direct materials $1,500 Direct labor $5,000 Machine hours Number of inspections Direct labor hours 400 6 750 Using direct labor hours to assign all overhead (the traditional method), the total cost of the potential job would be: a. $6,000 b. $3,000 c. $1,600 d. $6,500 e. $9,500 5 points Question 7 1. The Overdale plant has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows: Machine maintenance $120,000 Inspection $200,000 Total expected overhead: $320,000 (120,000 + 200,000 from above) Expected activity levels for the coming year are as follows: 80,000 direct labor hours 40,000 machine hours 2,500 inspections The following data has been assembled for use in developing a bid for a proposed job: Direct materials $1,500 Direct labor $5,000 Machine hours Number of inspections Direct labor hours 400 6 750 Using activity-based costing and the appropriate cost drivers, the total cost of the potential job would be a. $9,230 b. $8,180 c. $11,180 d. $9,500 e. $3,180 5 points Question 8 1. Listed below are various activities that you noted on your tour of a manufacturing plant in Springfield. The plant manufactures a stuffed teddy bear with college logos embroidered over their hearts. Each logo style is considered to be a different product. Several batches of the teddy bear are produced each year for each customer. Classify each activity as unit-level, batch-level, product-level, or facility. You may use the choices more than once or not at all. Rent on the factory is paid monthly. A designer is paid to design the logos that are used to customize the bears. Wages paid to sew on the bear button-eyes and eyelashes. Cost of issuing purchase orders. Purchase orders are issued for each order that comes in from a customer. Each order, regardless of size, is completed in a single production run. 2. A. One teddy bear from each order is inspected. 3. unit-level B. batch-level C. product-level D. facility-level 10 points Question 9 1. Dierich Company uses an activity-based costing system with three activity cost pools to price costs of servicing its customers. The company has provided the following data concerning its costs and its activity based costing system: Costs: Wages and salaries $600,000 Supplies and miscellaneous $220,000 Total $820,000 Distribution of resource consumption across the 3 pools: Pool 1 Pool 2 Order Filling Customer Support Pool 3 Other Total Wages and salaries 15% 75% 10% 100% Supplies and Miscellaneous 60% 20% 20% 100% How much total cost is allocated to the order-filling pool? a. $601,500 b. $300,750 c. $494,000 d. $222,000 5 points Question 10 1. Galaxy Industries manufactures 15,000 components per year as one part of its production activities. The costs to manufacture the part are as follows: Direct materials $150,000 Direct labor $240,000 Variable manufacturing overhead Fixed manufacturing overhead (allocated common costs) Total costs $90,000 $120,000 $600,000 o If the component is purchased, a part of the manufacturing facility can be rented to another business for $5,000. o An outside supplier has offered to sell the component to Galaxy for $34 each. If Galaxy purchases the component instead of manufacturing it, the effect on Galaxy's net income would be a... a. $95,000 decrease b. $35,000 decrease c. $30,000 decrease d. $25,000 decrease e. $90,000 decrease 5 points Question 11 1. Tudor company produces several electronic devices in their Minnesota factory. Tudor Company has the following costs related to manufacturing and selling 100,000 RZ devices. Direct materials $200,000 Direct labor $450,000 Variable manufacturing overhead $70,000 Depreciation on equipment only used for the RZ devices $32,000 Depreciation on factory (allocated to RZ device production) $100,000 Salary of RZ device production manager $80,000 Variable selling costs $25,000 Sales manager's salary (allocated to RZ device production) $30,000 Total $987,000 2. The sales price of the RZ device was recently reduced to $9.00 each due to new competition. Management is considering discontinuation of the RZ device. It will continue to produce other products in the same factory. If the RZ devices are discontinued, the RZ production manager will be fired and the equipment used to make the RZ devices will be put in storage. 3. By how much will Tudor's cash flow change if they discontinue the widget and do not have the 100,000 units of widget sales next year? a. $130,000 decrease b. $87,000 increase c. $108,000 increase d. $100,000 decrease e. $75,000 decrease 5 points Question 12 1. Bridger Company currently has the capacity to manufacture 250,000 widgets a year. The widgets normally sell for $8.00 each. Bridger Company has the following costs related to manufacturing and selling 200,000 widgets: Direct materials $300,000 Direct labor $540,000 Variable manufacturing overhead $180,000 Depreciation on equipment only used for the widgets Depreciation on factory $40,000 $100,000 Salary of widget production manager $70,000 Variable selling costs (commissions) $60,000 Fixed selling costs $80,000 Total $1,370,000 Assume Minot Inc. asks Bridger to complete a manufacture a special order of 10,000 widgets. Minot is willing to pay $5.50 per widget (and the sales commission will apply on this special order). By how much will Bridger's income change if they accept the special order? a. $4,000 increase b. $1,000 increase c. $13,500 decrease d. $1,000 decrease e. $25,000 decrease 5 points Question 13 1. Bridger Company currently has the capacity to manufacture 250,000 widgets a year. The widgets normally sell for $8.00 each. Bridger Company has the following costs related to manufacturing and selling 200,000 widgets: Direct materials $300,000 Direct labor $540,000 Variable manufacturing overhead $180,000 Depreciation on equipment only used for the widgets Depreciation on factory $40,000 $100,000 Salary of widget production manager $70,000 Variable selling costs (commissions) $60,000 Fixed selling costs $80,000 Total $1,370,000 Assume Clever Inc. asks Bridger to manufacture a special order of 4,000 widgets. Bridger will not incur any commissions cost on this order. Which costs are relevant to Bridger's decision whether to accept or reject the special order? Choose whether each cost is relevant or not. variable manufacturing overhead depreciation on the machinery used only on the widgets direct labor 2. A. 3. variable selling costs Relevant B. Not relevant 6 points Question 14 1. Bridger Company currently has the capacity to manufacture 250,000 widgets a year. The widgets normally sell for $8.00 each. Bridger Company has the following costs related to manufacturing and selling 200,000 widgets: Direct materials $300,000 Direct labor $540,000 Variable manufacturing overhead $180,000 Depreciation on equipment only used for the widgets $40,000 Depreciation on factory $100,000 Salary of widget production manager $70,000 Variable selling costs (commissions) $60,000 Fixed selling costs $80,000 Total $1,370,000 Now assume that at the end of the year. Bridger still has 5,000 units on the shelf. Bridger has redesigned the widget for next year's production, making the old units nearly obsolete. As a result, they are trying to liquidate the old widgets. Normal commissions will be paid. Which costs are relevant in determining the lowest amount that Bridger should accept for these 5,000 units? Choose whether each cost is relevant or not. direct materials and direct labor depreciation on the factory depreciation on the machinery used only on the widgets 2. A. 3. variable selling costs Relevant B. Not relevant 6 points Question 15 1. Consider the following production and cost data for two products, X and Y, manufactured by Alphabet Company. Sales price per unit....................................... Direct materials cost per unit....................... Direct labor hours per unit Machine-hours needed per unit...................... Product X Product Y $52 $40 $18 1.5 hours $8 1 hour 3 hours 2 hours o The labor rate is $10 per hour. o Variable overhead is $2 per direct labor hour. o The company has 15,000 machine hours available each period, and there is unlimited demand for each product. What is the largest possible total contribution margin that can be earned each period? a. $105,000 b. $150,000 c. $120,000 d. $124,000 e. $111,000 5 points Question 16 1. Porker Enterprises produces ham from locally raised pigs. The cost of getting the pig ready for market is about $80 per pig. $7 of that has been allocated to the ham portion of the pig. Each pig produces a ham that is approximately 12 pounds and sells for $1.50 per pound. Porker can smoke the hams for an additional $6 per ham. The smoked ham will sell for $2.25 per pound. By how much will Porker's income change if they smoke 300 hams (label as an increase or decrease) as opposed to selling them as is? a. $1,200 decrease b. $2,700 increase c. $900 increase d. $900 decrease e. none of the above 5 points Question 17 1. Aloussim Industries manufactures a product with the following costs per unit at capacity of 30,000 units. Direct materials.............................. $5 Direct labor................................... $15 Variable manufacturing overhead...$8 Fixed manufacturing overhead...... $6 The company is currently operating at capacity (they cannot produce more than 30,000 units). The product regularly sells for $45. A wholesaler has offered to pay $40 each for 2,000 units. What is the effect on net income, if Aloussim Industries accepts the special order? a. $24,000 increase b. $34,000 increase c. $10,000 decrease d. $12,000 decrease e. none of the above 5 points Question 18 1. Use this for the questions in this section: Sandy Company manufactures three models of office chairs: economy, basic and deluxe. Product information for March is provided below, computed at production levels of 200 of each chair. Economy Basic Deluxe $150 $210 $320 -$40 -$80 -$200 Fixed*.................................................................... -$20 -$45 -$70 Unit Variable selling costs........................................... -$30 -$30 -$30 $60 $55 $20 4 mhrs 4 mhrs 3 mhrs Unit selling price........................................................ Unit manufacturing costs:.......................................... Variable................................................................ Net income per unit (computed from amounts above) Machine-hours per unit............................................... *Fixed manufacturing costs of $27,000 are assigned based on direct labor hours. The costs are unavoidable. If Sandy has excess capacity, and there is unsatisfied demand for all three products, which model should they produce? a. economy b. basic c. deluxe 5 points Click Save and Submit to save and submit. Click Save All Answers to save all answers