Q1 Intelco, a professional services firm, has overhead costs of $500,000.It operates three divisions, and an accountant's estimate of the overhead allocation per division is 50% for Division 1. 30% for Division 2, and 20% for Division 3.The divisions respectively bill 4,000, 2,000 and 3,000 hours.What is the overhead rate for Division 2?

Select one:

a.$63

b.$56

c.$75

d.$17

Q2 BCF Ltd. manufactures a product known as a Grunge.Direct material and labour costs for each Grunge are $300 and $150, respectively.To produce a Grunge requires 20 labour hours: 10 hours in machining, 7 hours in assembly, and 3 hours in finishing.Information for each department is as follows:

MachiningAssemblyFinishingOverhead costs$120,000$80,000$30,000Labour hours20,00010,00010,000

What is the cost of a Grunge using departmental overhead rates?

Select one:

a.$450.00

b.$575.00

c.$467.00

d.$455.75

Q3 Engineering Products produces Product GH1, which incurs costs of $150 for direct materials and $75 for direct labour per unit.The company has estimated its production overhead and direct labour hours for a period as:

Dept. ADept. BDept. COverhead$150,000$200,000$125,000Direct labour hours5,00010,0005,000

Each unit of Product GH1 is produced using 10 hours in Dept. A, 12 hours in Dept. B, and 5 hours in Dept. C.Calculate the cost of one unit of GH1 using a company-wide overhead rate to the nearest dollar.

Select one:

a.$225

b.$866

c.$620

d.$300

Q4 Haridan Co. uses activity-based costing.The company has two products, A and B.The annual production and sales of Products A and B are 8,000 units and 6,000 units, respectively.There are three activity cost pools, with estimated total cost and expected activity as follows:

Expected ActivityActivity Cost PoolEstimated CostProduct AProduct BTotalActivity 1$20,000100400500Activity 237,0008002001,000Activity 3912008003,0003,800

What is the overhead cost per unit for Product A under activity-based costing?

Select one:

a.$6.60

b.$18.53

c.$21.46

d.$5.94