The management of Plitt Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine-hours and the estimated amount of the allocation base for the upcoming year is 78,000 machine hours. Capacity is 101.000 machine-hours and the actual level of activity for the year is assumed to be 80,500 machine-hours. All of the manufacturing overhead is fixed and both the estimated amount at the beginning of the year and the actual amount at the end of the year are assumed to be $4,726,800 per year. It is assumed that a number of jobs were worked on during the year, one of which was Job Q20L which required 370 machine-hours. If the company bases its predetermined overhead rate on the estimated amount of the allocation base for the upcoming year, then the predetermined overhead rate is closest to: $58.72 per machine-hour SEO $45.35 per machine-hour ( $60.60 per machine. O SAR $46.80 per machine-hour Rapier Woodworking Corporation produces fine cabinets. The company uses a job-order costing system in which its predetermined overhead rate is based on capacity. The capacity of the factory is determined by the capacity of its constraint, which is an automated jointer Additional information is provided below for the most recent month: $3,660 200 hours Estimates at the beginning of the month: Estimated total fixed manufacturing overhead Capacity of the jointer Actual results: Actual total fixed manufacturing overhead Actual hours of jointer use $3,660 170 hours The predetermined overhead rate based on hours at capacity is closest to: $59.65 per hour $50.60 per hour o $21.53 per hour $18.30 per hour EN O $1.34 per machine-hour mala mal RA O $1.51 per machine-hour OR T RE NEW - man De ES THERE inline O $1.20 per machine-hour QU F L www O $1.41 per machine-hour PRID WE hi Coble Woodworking Corporation produces fine cabinets. The company uses a job-order costing system in which its predetermined overhead rate is based on capacity. The capacity of the factory is determined by the capacity of its constraint, which is an automated shaper. Additional information is provided below for the most recent month Estimates at the beginning of the month: Estimated total fixed manufacturing overhead $ 66,780 Capacity of the shaper 420 hours Actual results: Sales $112,000 Direct materials $ 10,600 Direct labor $ 15,400 Actual total fixed manufacturing overhead $ 66,789 Selling and administrative expense $ 4,600 Actual hours of shaper use 370 hours The cost of unused capacity that would be reported as a period expense on the income statement prepared for internal management purposes would be closest to $7,950 0$ $62 180 $66.7 Coble Woodworking Corporation produces fine cabinets. The company uses a job-order costing system in which its predetermined w overhead rate is based on capacity. The capacity of the factory is determined by the capacity of its constraint, which is an automated shaper. Additional information is provided below for the most recent month Estimates at the beginning of the month: Estimated total fixed manufacturing overhead $ 47,100 Capacity of the shaper 300 hours Actual results: Sales $127,000 Direct materials $ 11,400 Direct labor $ 16,200 Actual total fixed manufacturing overhead $ 47,100 Selling and administrative expense $ 3,200 Actual hours of shaper use 260 hours The cost of unused capacity that would be reported as a period expense on the income statement prepared for internal management purposes would be closest to $6,280 $43.900 $47.100 The management of Featheringham Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine hours and the estimated amount of the allocation base for the upcoming year is 66,500 machine hours. Capacity is 79,500 machine-hours and the actual level of activity for the year is assumed to be 63,500 machine-hours. All of the manufacturing overhead is fixed and both the estimated amount at the beginning of the year and the actual amount at the end of the year are assumed to be $2,838,150 per year. It is assumed that a number of jobs were worked on during the year, one of which was Job Z77W which required 580 machine-hours. If the company bases its predetermined overhead rate on capacity, then the predetermined overhead rate is closest to: $42.68 per machine-hour o O $35.70 per machine-hour o $45.11 per machine-hour the $41.43 per machine-h C a ER The management of Plitt Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at mpany's controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine-hours and the estimated amount of the allocation base for the upcoming year is 72,000 machine-hours. Capacity is 99,000 machine-hours and the actual level of activity for the year is assumed to be 78,000 machine-hours. All of the manufacturing overhead is fixed and both the estimated amount at the beginning of the year and the actual amount at the end of the year are assumed to be $1,869120 per year It is assumed that a number of jobs were worked on during the year, one of which was Job Q20L which required 430 machine hours. If the company bases its predetermined overhead rate on capacity, what would be the cost of unused capacity reported on the income statement prepared for internal management purposes? - . IIIIIIIIIIIII 1 inter $509,760 $155,760 ht $14377 s396.480 Anal o o o O
