Perteet Corporation's relevant range of activity is 6,600 units to 13,000 units. When it produces and sells 9,800 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $7.30 $3.70 $1.80 $3.10 $0.70 $0.40 $0.50 $0.55 If 7,300 units are produced, the total amount of manufacturing overhead cost is closest to: Multiple Choice $35,770 $57,390 Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $0.70 $0.40 $0.50 $0.55 If 7,300 units are produced, the total amount of manufacturing overhead cost is closest to: Multiple Choice $35,770 $57,390 $43,520 $27.740 Brothern Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the most recently completed year appear below: Estimates made at the beginning of the year: Estimated machine-hours Estimated variable manufacturing overhead Estimated total fixed manufacturing overhead Actual machine-hours for the year 37,100 $ 5.78 per machine-hour $1,108,919 34,600 The predetermined overhead rate for the recently completed year was closest to: Multiple Choice $35.28 per machine-hour $35.67 per machine-hour o oo $5.78 per machine-hour -- -------- - - -------- --- ---- - - -------- - - ---- ---- - Estimated machine-hours Estimated variable manufacturing overhead Estimated total fixed manufacturing overhead Actual machine-hours for the year 37,100 $ 5.78 per machine-hour $1,108,919 34,600 The predetermined overhead rate for the recently completed year was closest to: 0 $35.28 per machine-hour 0 $35.67 per machine-hour 0 $5.78 per machine-hour 0 $29.89 per machine-hour Compute the amount of raw materials used during November if $35,500 of raw materials were purchased during the month and if the inventories were as follows: Inventories Raw materials Work in process Finished goods Balance November 1 $ 9,200 $ 7,100 $11,100 Balance November 30 $ 5,100 $ 8,600 $ 13,100 Multiple Choice $37,000 10 0 0 0 $36,100 $33,600 $39,600 Privott, Inc., manufactures and sells two products: Product 29 and 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 Activity Cost Pools Measures Labor-related DLHS Product testing tests Order size MHS Estimated Overhead Cost $336,018 51,747 477,108 $ 864,873 Product 29 Product NO 7,600 4,200 1,000 1,100 5, 200 5,500 Total 11,800 2,100 10,700 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to: Multiple Choice $47.04 per DLH $411.84 per DLH $51.75 per DLH Product testing Order size tests MHS 51,747 477,108 $ 864,873 1,000 5, 200 1,100 5,500 2,100 10,700 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to: Multiple Choice O $47.04 per DLH 0 $411.84 per DLH 0 $51.75 per DLH 0 $28.48 per DLH
