Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help with some multi-choice questions, no working out necessary :) Question 36 Gregory Company has identied three cost pools to allocate overhead costs. The

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

Please help with some multi-choice questions, no working out necessary :)

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Question 36 Gregory Company has identied three cost pools to allocate overhead costs. The following estimates are provided for the coming year: Cost Pool Overhead Costs Cost driver Activity level Supervision of direct labor $326,000 Direct labor-hours 900,000 Machine maintenance $132,000 Machine-hours 960,000 Facility rent , Square feet of area 100,000 Total overhead costs $, The accounting records show the Mossman Job consumed the following resources: Cost driver Actual level Direct labor-hours 200 Machine-hours 1 ,500 Square feet of area 70 Under activity-based costing, what is the amount of machine maintenance costs allocated to the Mossman Job (round to 2 decimal places)? "" $206.75 "" $206.25 "" $206.00 "" $206.50 Quastion 37 2 points Save Ar Aqua Company produces two productsAlpha and Beta. Alpha has a high market share and is produced in bulk. Production of Beta is based on customer orders and is custom designed. Also, 55% of Beta's cost is shared between design and setup costs, while Alpha's major portions of costs are direct costs. Aqua is using a single cost pool to allocate indirect costs. Which of the following statements is true of Aqua? '\" Aqua will overcost Beta's indirect costs because beta has high indirect costs. A Aqua will undercost Alpha's indirect costs because alpha has high direct costs. "' Aqua will overcost Alpha's indirect costs as it is using a single cost pool to allocate indirect costs. "' Aqua will overcost Beta's direct costs as it is using a single cost pool to allocate indirect costs. Question 40 Gregory Company has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: Cost Pool Overhead Costs Cost driver Activity level Supervision of direct labor $326,000 Direct labor-hours 900,000 Machine maintenance $132,000 Machine-hours 960,000 Facility rent $217,000 Square feet of area 100,000 Total overhead costs $675,000 The accounting records show the Mossman Job consumed the following resources: Cost driver Actual level Direct labor-hours 200 Machine-hours 1,500 Square feet of area 70 If direct labor-hours are considered the only overhead cost driver, what is the single cost driver rate for Gregory? C $0.75 per direct labor-hour $1.25 per direct labor-hour $0.80 per direct labor-hour C $1.33 per direct labor-hourQuastlon 41 2 points Save Ansv For 2013, Bakers Manufacturing uses machine-hours as the only overhead cost-allocation base. The direct cost rate is $3.00 per unit. The selling price of the product is $20.00. The estimated manufacturing overhead costs are $240,000 and estimated 40,000 machine hours. The actual manufacturing overhead costs are $300,000 and actual machine hours are 50,000. What is the prot margin earned if each unit requires two machine-hours, assuming Bakers Manufacturing uses actual costing system? A $53.73 A $33.33% A 53.33% A 66.67% Question 42 Shine Jewelry sells 400 units resulting in $7,000 of sales revenue, $3,000 of variable costs. and $1,500 of fixed costs. Calculate the variable cost per unit. 5\" $7.50 "7 $8.00 "\" $11.00 "f\" $7.00 Question 44 The Marietta Company has fixed costs of $60,000 and variable costs are 75% of the selling price. To realize prots of $10,000 from sales of 50,000 units, the selling price per unit 'A must be $5.60 "' must be $1.20 "' must be $6.00 "\" must be $4.23

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_2

Step: 3

blur-text-image_3

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

College Accounting A Practical Approach

Authors: Jeffrey Slater, Mike Deschamps

14th Edition

0134729315, 978-0134729312

More Books

Students also viewed these Accounting questions