Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Foisy, Inc., manufactures and sells two products: Product NO and Product U8. Data concerning the expected production of each product and the expected total direct

image text in transcribedimage text in transcribed

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Foisy, Inc., manufactures and sells two products: Product NO and Product U8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production 1,000 Direct Labor- Hours Per Unit 6.0 9.0 Total Direct Labor- Hours 6,000 1,800 7,800 Product NO Product U8 Total direct labor-hours 200 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Activity Activity Cost Pools Measures Labor-related DLHS Machine setups setups Order size MHS Estimated Overhead Cost $170,664 59,040 252,648 $ 482,352 Total 7,800 Product NO Product U8 6,000 1,800 400 500 3,400 3,200 900 6,600 The total overhead applied to Product U8 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $111,312 $80,392 $122,496 $194,680 Chrzan, Inc., manufactures and sells two products: Product EO and Product NO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Direct Labor- Expected Hours Per Production Unit 300 9.0 1,000 8.0 Total Direct Labor- Hours 2,700 8,000 Product EO Product NO Total direct labor-hours 10,700 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Estimated Activity Overhead Activity Cost Pools Measures Cost Labor-related DLHS $296,390 Production orders orders 55,587 Order size MHS 579,866 $931,843 Product EO Product NO 2,700 8,000 300 400 5,000 4,700 Total 10,700 700 9,700 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: Multiple Choice O $59.78 per MH $37.05 per MH $87.09 per MH $44.16 per MH The overhead applied to each unit of Product U4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $198.12 per unit $103.72 per unit sammans $189.21 per unit $252.28 per unit Gradwell, Inc., manufactures and sells two products: Product K8 and Product 14. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production 300 900 Direct Labor- Hours Per Unit 5.0 3.0 Total Direct Labor- Hours 1,500 2,700 4,200 Product K8 Product 14 Total direct labor-hours The direct labor rate is $17.20 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $150.20 $ 243.70 Product K8 Product 14 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Total Activity Activity Cost Pools Measures Labor-related DLHS Machine setups setups Order size MHS Estimated Overhead Cost $ 176,064 71,290 121,396 $368,750 Product K8 Product 14 1,500 600 4,300 4,600 400 1,000 8,900 The unit product cost of Product 14 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice 0 $421.06 per unit $558.70 per unit $509.17 per unit $336.22 per unit Arntson, Inc., manufactures and sells two products: Product R3 and Product NO. The annual production and sales of Product of R3 is 200 units and of Product NO is 100 units. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production 200 Direct Labor- Hours Per Unit 8.0 11.0 Total Direct Labor- Hours 1,600 1,100 2,700 Product R3 Product NO Total direct labor-hours 100 The direct labor rate is $15.80 per DLH. The direct materials cost per unit is $287.80 for Product R3 and $104.80 for Product NO. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Activity Cost Pools Labor-related Production orders Order size Activity Measures DLHS orders MHS Estimated Overhead Cost $ 39,636 57,421 432,075 $529,132 Product R3 Product NO 1,600 1,100 600 700 3,600 3,900 Total 2,700 1,300 7,500 The unit product cost of Product R3 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice o $1,451.18 per unit o $2,1797 per unit o $1,981.96 per unit o $1,701.13 per unit Treaster, Inc., manufactures and sells two products: Product JS and Product G2. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production 900 1,000 Direct Labor- Hours Per Unit 9.0 12.0 Total Direct Labor- Hours 8,100 12,000 20,100 Product J8 Product G2 Total direct labor-hours The direct labor rate is $26.90 per DLH. The direct materials cost per unit is $217.20 for Product J8 and $139.60 for Product G2. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Estimated Expected Activity Activity Cost Pools Measures Overhead Cost Product J8 Product G2 Total Labor-related DLHS $ 655,059 8,100 12,000 20,100 Production orders orders 40,086 500 400 900 Order size MHS 711,588 3,900 3,700 7,600 $1,406,733 If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product G2 would be closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $534.48 per unit $839.88 per unit $1,123.56 per unit $391.08 per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Expert Fraud Investigation A Step By Step Guide

Authors: Tracy Coenen

1st Edition

0470387963, 978-0470387962

More Books

Students also viewed these Accounting questions