Single plantwide factory overhead rate Tallulah Inc.'s Machining Department incurred $1,125,000 of factow overhead cost in producing hoses and valves. The two products consumed a total of 50,000 direct machine hours. Of that amount, hoses consumed 18,000 direct machine hours. Determine the total amount of factory overhead that should be allocated to hoses using machine hours as the allocation base. $:l Single plantwide factory overhead rate Platzer Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $1,874,400. Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit: Budgeted Production Direct Labor Volume Hours Per Unit Flutes 7,500 units 2.0 Clarinets 1,500 3.0 Oboes 1,200 1.5 a. Determine the single plantwide overhead rate. $:] per direct labor hour | I). Use the overhead rate in (a) to determine the amount of total and per-unit overhead allocated to each of the three products, rounded to the nearest dollar. Total Per Unit Factory Overhead Cast Factory Overhead Cost $E as: Total 15:] Multiple production department factory overhead rate method Spielman Leather, Inc., produces three sizes of sports gloves: small, medium, and large. A glove pattern is first stenciled onto leather in the Pattern Department. The stenciled patterns are then sent to the Cut and Sew Department, where the glove is cut and sewed together. Spielman Leather uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead costs were budgeted as follows: Pattern Department overhead $180,000 Cut and Sew Department overhead 756,000 Total $936,000 The direct labor estimated for each production department was as follows: Pattern Department 36,000 direct labor hours Cut and Sew Department 84 000 Total 120 000 direct labor hours Direct labor hours are used to allocate the production department overhead to the products. The direct labor hours per unit for each product for each production department were obtained from the engineering records as follows: Production Departments Small Glove Medium Glove Large Glove Pattern Department 0.25 0.35 0.45 Cut and Sew Department 0.40 0.55 0.70 Direct labor hours per unit 0.65 0.90 1.15 If required, round all per unit answers to the nearest cent. a. Determine the two production department factory overhead rates. Pattern department 3; per dlh Cut and Sew department $ per dlh b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product. Small glove $:] per unit Medium glove $:] per unit Large glove $:] per unit Product costs using activity rates Friedman.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is $875,000 and 50,000 sales orders are estimated to be processed. 3. Determine the activity rate of the sales order processing activity. 3;: per sales order b. Determine the amount of sales order processing cost associated with 28,750 sales orders. $:] Actwnty cost pools, activity rates, and product costs using activity-based costing Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activity-base information are provided as follows: Budgeted Activity Activity Cost Activity Base Procurement $12,600 Number of purchase orders Scheduling 90,000 Number of production orders Materials handling 11,000 Number of moves Product development 50,000 Number of engineering changes Total cost $163,600 The estimated actlwtyibase usage and unit information for two product lines was determined as follows: Number of Number of Number of Production Number of Engineering Change Purchase Orders Orders Moves Orders Units Ovens 400 800 300 80 1,000 Refrigerators 300 400 200 120 500 Totals 700 1,200 500 200 1,500 a. Determine the activity rate for each activity cost pool. Procurement (per purchase order) $:] Scheduling (per production order) $[:] Materials handling (per move) $:] Product development (per engineering change order) $:] b. Determine the activity-based cost per unit of each product. Round the per unit rates to the nearest cent. Ovens $ per unit Refrigerators $ per unit Activity-based costing for a service company Crosswinds Hospital plans to use activitybased costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and actwnty rates for the hospital indirect costs: Activity Activity Rate Room and meals $240 per day Radiology $215 per image Pharmacy $50 per physician order Chemistry lab $80 per test Operating room $1,000 per operating room hour The activity usage information associated with the two patients is as follows: Abel Putin Cheryl Umit Number of days 6 days 4 days Number of images 4 images 3 images Number of physician orders 6 orders 2 orders Number of tests 5 tests 4 tests Number of operating room hours 8 hours 4 hours a. Determine the activity cost associated with each patient. Abel Putin $ Cheryl Umit $ b. Why is the total activity cost different for the two patients? V apparently had a different condition that required more extensive treatment. Thus, the activity cost to V is nearly V times that of other patient