Q4.35: A company allocates a part of factory overhead among products on the basis of labor hours (the cost driver). Based on this allocation, the allocated overhead most likely pertains to A electricity usage. B machine depreciation. c manual processes. D an automated system. Q4.35: Buzz Motors makes four different electric car models. Next year, the company anticipates total overhead costs of $3.4 million. It also anticipates a combined 85,000 direct labor hours across all of its production lines. If Buzz uses direct labor hours to allocate its overhead costs, what is the company's predetermined overhead rate? A $40 per hour. B $30 per hour. $20 per hour. D $10 per hour. Q 4.35: Precision Timepieces manufactures three models of watch: the City, the Metro, and the Urban. Next year, the firm anticipates using the following number of machine hours for each model: Model Machine Hours City 22,245 Metro 18,740 Urban 20,125 If Precision's predetermined overhead rate is $10.60 per machine hour, what are the firm's total expected overhead costs for the year (rounded to the nearest $1,000)? A $648,000 $792,000 C $504,000 D $216,000 Q 4.35: Stockholm Skis makes two different products: downhill racing skis and cross-country skis. The company uses an ABC system that features the following activity cost pools and drivers: Cost Pool Driver Manufacturing Machine hours Assembly Parts used Ordering and receiving Purchase orders processed Painting Square inches painted Sanding Square inches sanded Inspection and testing Inspections performed For the coming year, Stockholm estimates that it will use 36,000 parts in the assembly of its downhill skis ang 31,500 parts in the assembly of its cross-country skis. Based on this information, you can conclude that A downhill skis will account for a larger percentage of overhead costs from the manufacturing pool. cross-country skis will account for a smaller percentage of overhead costs from the assembly pool. downhill skis will account for a larger percentage of overhead costs from the ordering and receiving pool. D cross-country skis will account for a smaller percentage of overhead costs from the inspection and testing pool. Q4.35: The following information comes from Motion Moving's ABC system: | Cost Pool Driver Activity-Based Overhead Rate Administration Revenue billed $0.08 per dollar revenue Recruiting and training Number of job hours $0.10 per hour Travel Miles driven $1.05 per mile Motion just completed a moving job that required the company's employees to put in 40 job hours and drive a total of 620 miles. The job produced revenue of $2,500. What is the total amount of overhead Motion should assign to this job? A $1,595 B $1,645 C $855 D $905