TB MC Qu. 04-120 (Static) Tarnish Industries produces... Tarnish industries produces miniature models of farm equipment. These collecties are in great demind it takes two operations, molding and finishing to complete the miniatures Next year's expected activities are shown in the following table Molding Finishing Direct Labor hours 75,000 LH 160,500 Machine hours 98,000 MM 31.500 MIL Tarnish Industries uses departmental overhead rates and is planning on a $10 per direct labor hour overhead rate for the finishing department Compute the budgeted manufacturing overhead cost for the finishing department oven the information thown in the table T8 MC Qu. 04-98 (Static) Peterson Company budgets overhead cost. Peterson Company budgets overhead cost of $2070,000 for the next year. The company ses machine hours ass overhead location. I MO 000 machine hours we planned for the next year, What's the company's plantwide overhead rato? (Round your answer to two decimal places) Me Choice Te MC Qu. 04-97 (Static) Kay Company budgets overhead... Kay Company budgets overhead cost of $3.700,000 for the next year. The company direct labor hours as its overhead allocation base i 10.000 direct labor hours are planned for the next year how much overhead would be assigned to producte de labor hours TB MC Qu. 04-159 (Static) Tasty Pastry produces donuts.. Testy Pastry producers donuts which go through two operations, Maxing and Bakr, before they are ready to be packaged. Next year's expected costs and activities are shown below Diret Labor hours Machine hout Overhead conta Mixing 300,000 1.000,000 $ 510,000 making 70,000 DE 100,000 MW $ 400,000 Compute Tasty's departmental overhead rate for the Maing department based on direct laboe hours TB MC Qu. 04-115 (Algo) Aztec Industries produces bread which... Aztec Industries produces bread which goes through two operations, Mixing and Bakino, before it is ready to the packaged Next year's expected.costs and activities are shown below Direct labor hours Machine hours Overhead cost Mixing 406.000 106,000 MM 507,500 Baking 86,000 DIN 106,000 MM 0.406,000 Computer Artee's departmental overhead role for the Baking department based on recintor hours TB MC Qu. 04-87 (Static) Which of the following statements is true with... Which of the following statements is true with regard to activity-based costing Multiple Choice The basic principle underlying activity based costing is that activities are what cause overhead cost to be incurred. Activity based costing rates are the same as departmental overhead rotos. Activity rates are computed by dividing budgeted activity usage by budgeted activity cost Activity based costing often results in low.volume complex products being undercasted, and high-volume simpler products being overcosted All cost drivers used to determine the rates will be unit level drivers TB MC Qu. 04-113 (Algo) Caico Industries produces bread... Calco Industries produces bread which goes through two operations, Meding and Baking, before it is ready to be packaged. Next year's expected costs and activities are shown below Direct labor hours Machine hours Overhead costs Mixing 412.000 DLH 812,000 MM $ 515.000 Baking 92,000 DLR 812,000 MK $. 412.000 Compute Calco's departmental overhead rate for the Ming department based on direct labor hours TB MC Qu. 04-153 (Static) Which of the following is a disadvantage of... Which of the following is a disadvantage of the departmental overhead rate method? Multiple Choice It may fail to accurately assign many overhead costs that are not driven by production volume, Allows each department to have its own overhead rate. Allows each department to have its own allocation base. The departmental overhead rate is usually more accurate in overhead allocations than the plantwide overhead rate. The departmental overhead rate is consistent with GAAP and can be used for external reporting
