QUESTION 1

1. ABC Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two department: Assembly, and Sanding.

   The Assembly department uses a departmental overhead rate of $35 per machine hour.

   The Sanding department uses a departmental overhead rate of $20 per direct labor hour.

   Job 603 used the following Direct Labor Hours, and Machine Hours in the two departments:

   Actual Results Assembly Department Sanding Department

   Direct Labor Hours Used 8 5

   Machine Hours Used 10 7

   The cost of direct labor is $30 per direct labor hour, and the cost of direct materials used by Job 603 is $1,400.

   How much manufacturing overhead would be allocated to Job 603 using departmental overhead rates?

   	a.	$450
   	b.	$380
   	c.	$715
   	d.	$390

2 points

QUESTION 2

1. ABC Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two department: Assembly, and Sanding.

   The Assembly department uses a departmental overhead rate of $35 per machine hour.

   The Sanding department uses a departmental overhead rate of $20 per direct labor hour.

   Job 603 used the following Direct Labor Hours, and Machine Hours in the two departments:

   Actual Results Assembly Department Sanding Department

   Direct Labor Hours Used 8 5

   Machine Hours Used 10 7

   The cost of direct labor is $30 per direct labor hour, and the cost of direct materials used by Job 603 is $1,400.

   How much manufacturing overhead would be allocated to Job 603 using departmental overhead rates?

   What was the TOTAL COST of Job 603 using departmental overhead rates to allocate manufacturing overhead?

   	a.	$1,850
   	b.	$2,240
   	c.	$1,790
   	d.	$2,170

3 points

QUESTION 3

1. Swiss Furniture Company makes book shelves, and uses ABC to allocate all manufacturing costs.

   Activity Estimated Costs Allocation Base Estimated Quantity of Allocation Base

   Materials Handling $6,400 Number of Parts 3,200 Parts

   Assembly $11,200 Number of Parts 3,200 Parts

   Packaging $2,240 Number of Book Shelves 800 Book Shelves

   Each Book Shelf consists of 4 parts and 1 package. The direct materials cost per book shelf is $30. What is the total manufacturing cost per book shelf?

   	a.	$22.00
   	b.	$54.80
   	c.	$52.00
   	d.	$24.80

3 points

QUESTION 4

1. Total fixed costs for Taylor Incorp. are $240,000. Total costs, including both fixed and variable, are $500,000, if 125,000 units are produced.

   The variable cost per unit is:

   	a.	$1.92 per unit
   	b.	$2.08 per unit
   	c.	$4.00 per unit
   	d.	$5.92 per unit

2 points

QUESTION 5

1. Great Calls has a special plan offer this month. There is a $3 per month charge each month, and calls anywhere in the U.S. are 4 cents per minute. What would the monthly cost be if you typically talk for 450 minutes per month?

   	a.	$21
   	b.	$5
   	c.	$18
   	d.	$15

2 points