Populace Manufacturing Inc., ("the company") a pre-fab shack manufacturer, is considering bidding on a job. In order to submit this bid, the company needs to calculate the total cost of performing this job. Financial details for the proposed job are as follows:

Number of inspections	80
Number of machine hours	600
Number of direct labour hours	2,000
Direct materials	$21,000
Direct labour	$16,000
Number of material moves	25

The company has three different categories of overhead. The overhead costs for each of the categories for the next year are as follows:

	Costs	Cost Driver	Expected Activity
Materials handling	$30,000	Material moves	15,000
Maintenance	$360,000	Machine hours	24,000
Inspection	$14,000	Inspections	4,000

The company applies overhead using a predetermined overhead rate based upon a budgeted direct labour hours of 50,000.

Using the above information answer the following questions.

Question 38 (1 point)

Question 38 options:

If the company used activity-based costing, calculate the total overhead cost that would be assigned for material handling to the job

Question 39 (1 point)

Question 39 options:

If the company used activity-based costing, calculate the total overhead cost that would be assigned for maintenance to the job

Question 40 (1 point)

Question 40 options:

If the company used activity-based costing, calculate the total overhead cost that would be assigned for inspections to the job

Question 41 (1 point)

Question 41 options:

If the company used activity-based costing, calculate the total of material cost + direct labour cost that would be assigned to the job

Question 42 (1 point)

Question 42 options:

If the company used activity-based costing, calculate the total cost that would be assigned to the job

Question 43 (2 points)

Question 43 options:

If the company allocated overhead to the job using a plantwide overhead rate, calculate the total overhead cost assigned to the job

Question 44 (1 point)

Question 44 options:

If the company allocated overhead to the job using a plantwide overhead rate, calculate the total cost assigned to the job

Question 45 (1 point)

It would not be appropriate to adopt an ABC policy if which of the following were true:

Question 45 options:

a)	All of the other answers are correct.

b)	The cost of developing individual cost pools was too great.

c)	The products being produced were quite similar.

d)	All products consumed resources in a similar manner.

Next Page