Mult 1-10
IV. Multiple Choice Items 1 through 10 are based on the following information. Wonders Inc. manufactures radios in two different styles: Annual Sales Radio Model in Units Starry 10,000 Polka 16,000 Wonders uses a traditional volume-based costing system in applying factory overhead using direct labor pesos. The unit prime costs of each product were as follows: Starry Polka Direct materials P38.00 P25.40 Direct labor: 1.2 x P14.60 = 17.52 0.9 x P14.60 = 13.14 The predetermined overhead rate was 350% (P1,349,040 + 385,440). Direct labor budget per annual sales: Starry radio 10,000 x P17.52 P175.200 Polka radio 16,000 x P13.14 210.240 Total P385,440 Factory overhead: Engineering and Design P 404,712 Quality Control 269,808 Machinery 539,616 Miscellaneous Overhead 134,904 Total P1,349.040 Wonders' controller had been researching activity-based costing and decided to switch to it. A special study determined Wonders' two radio models were responsible for the following proportions of each cost driver: Starry Engineering and Design 40% Polka Quality Control 45% 60% Machinery, 60% 55% Miscellaneous Overhead 35% 40% 65%302 Chapter 9 Using traditional costing, applied factory overhead per unit for the 1. Starry model is calculated to be P43.42. A. P61.32 c. P65.43 d. P45.99. b. 2 Using traditional costing, applied factory overhead per unit for the Polka model is calculated to be a. P61.32 C. P43.42. P65.43 d. P45.99. 3. Using activity-based costing, applied factory overhead per unit for the Starry model, based on Engineering and Design, is calculated to be: P32.38 P16.19. b. P12.14. d. P 4.72. Using activity-based costing, applied factory overhead per unit for the Starry model, based on Quality Control, is calculated to be: P32.38. C. P16.19 b. P12.14 d . P 4.72. S. Using activity-based costing, applied factory overhead per unit for the Starry model, based on Machinery, is calculated to be: a. P32.38. C. P16.19. b. P12.14. d. P 4.72. 6. Using activity-based costing, applied factory overhead per unit for the Starry model, based on Miscellaneous Overhead, is calculated to be: a. P32.38. b. P12.14. C. P16.19. d. P 4.72. 7. Using activity-based costing, applied factory overhead per unit for the a. PIS.18 Polka model, based on Engineering and Design, is calculated to be: b. P 9.27. C. P 5.48. d. P13.49. 8. Using activity-based costing, applied factory overhead per unit for the Polka model, based on Quality Control, is calculated to be: a. P15.18 b. P 9.27. C. P 5.48. d. P13.49. 9. Using activity-based costing, applied factory overhead per unit for the Polka model, based on Machinery, is calculated to be:a. P15. 18. b. P 9.27. C. P 5.48. d. P13.49. 10. Using activity-based costing, applied factory overhead per unit for the Starry model, based on Miscellaneous Overhead, is calculated to be: a. P15.18. b. P 9.27. C. P 5.48. d. P13.49
