Question 1

Which of the following costs can W.T. tie directly to the individual products (ice cream bars and ice cream cartons)? (Select all that apply)

Group of answer choices

Depreciation on the truck

Ice cream truck worker's wages

Gas for ice cream truck

Paper goods (napkins, etc.) on truck

Cost of purchasing ice cream bars

Storage costs

Delivery (transportation) costs

W.T.'s salary

Manufacturing cost of ice cream sold in cartons

Supplies used in administrative duties

Question 2

Which of the following costs can W.T. tie directly to the wholesale division (cartons sold to businesses) or the retail division (ice cream bars sold from the ice cream truck)? (Select all that apply)

Group of answer choices

Manufacturing cost of ice cream sold in cartons

Cost of purchasing ice cream bars

Gas for ice cream truck

W.T.'s salary

Paper goods (napkins, etc.) on truck

Depreciation on the truck

Ice cream truck worker's wages

Storage costs

Supplies used in administrative duties

Question 5

assuming that the salesperson is able to sell 200 units of EZRecords and 100 units of ProOffice, what is the estimated cost per unit of ProOffice?

Question 6

Mitchell Services Company (MSC) has 50 employees, 28 of whom are assigned to Division A and 22 to Division B. MSC incurred $450,000 of fringe benefits costs (health insurance, retirement benefits, etc.) during 2018.

How much of the fringe benefits cost should MSC allocate to division A?

Question 7

Gobert Corporation manufactures wooden tables and chairs. Their estimated direct manufacturing costs (cost of the wood, cost of labor of employees cutting wood and assembling tables and chairs) are $38/unit. Gobert Corp. expects to incur indirect overhead costs of $80,000 per month.

Expected production for the first four months of 2019 is as follows:

	January	February	March	April
Estimated production (in units)	6,000	7,000	3,000	4,000

What is Gobert Corporation's estimated overhead cost per unit for the first four months of 2019? (Remember that an allocation rate like overhead cost per unit is determined as the total cost to be allocated divided by the cost driver)

Question 8

Gobert Corporation manufactures wooden tables and chairs. Their estimated direct manufacturing costs (cost of the wood, cost of labor of employees cutting wood and assembling tables and chairs) are $38/unit. Gobert Corp. expects to incur indirect overhead costs of $80,000 per month.

Expected production for the first four months of 2019 is as follows:

	January	February	March	April
Estimated production (in units)	6,000	7,000	3,000	4,000

How much overhead would Gobert Corporation allocate to the month of March?

Question 9

Gobert Corporation manufactures wooden tables and chairs. Their estimated direct manufacturing costs (cost of the wood, cost of labor of employees cutting wood and assembling tables and chairs) are $38/unit. Gobert Corp. expects to incur indirect overhead costs of $80,000 per month.

Expected production for the first four months of 2019 is as follows:

	January	February	March	April
Estimated production (in units)	6,000	7,000	3,000	4,000

What is Gobert Corporations total estimated cost per unit? (This will include both direct and indirect costs)

Question 10

Gobert Corporation manufactures wooden tables and chairs. Their estimated direct manufacturing costs (cost of the wood, cost of labor of employees cutting wood and assembling tables and chairs) are $38/unit. Gobert Corp. expects to incur indirect overhead costs of $80,000 per month.

Expected production for the first four months of 2019 is as follows:

	January	February	March	April
Estimated production (in units)	6,000	7,000	3,000	4,000

What is Gobert Corporation's estimated total cost (direct and indirect overhead costs) for the month of February?