Thomsen Computer Company produces three products: Earth, Wind, and Fire. Earth requires 80 machine setups, Wind requires 60 setups, and Fire requires 180 setups. Thomsen has identified an activity cost pool with allocated overhead of $900000 for which the cost driver is machine setups. How much overhead is assigned to each product? Earth Wind Fire $168750 $300000 $431250 $225000 $168750 $506250 $187500 $140625 $421875 $300000 $300000 $300000 Windsor Co. incurs $969375 of overhead costs each year in its three main departments, machining ($550000). inspections ($275000) and packing ($144375). The machining department works 4000 hours per year, there are 600 inspections per year, and the packing department packs 1000 orders per year. Information about Windsor's two products is as follows: Product Product Y 1000 3000 100 500 Machining hours Inspections Orders packed Direct labor hours 350 650 1700 1800 If traditional costing based on direct labor hours is used, how much overhead is assigned to Product X this year? O $470839 O $233865 O $335553 O $484688 Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of machining. $3200000; and assembling. $1600000. Information on the two products is: Direct labor hours Machine hours Number of parts Regular Supreme 10000 15000 10000 30000 90000 160000 N Overhead applied to Supreme using activity based costing is O $2880000 O $3424000 O $1376000. $1920000. Zimmerman Company manufactures two products, Board 12 and Case 165. Zimmerman's overhead costs consist of setting up machines, $2800000; machining. $5300000; and inspecting. $2100000. Information on the two products is: Board 12 15000 Case 165 25000 600 400 Direct labor hours Machine setups Machine hours Inspections 24000 26000 800 700 Overhead applied to Board 12 using activity-based costing is O $3825000 O $5344000 O $6120000 O $4856000 Estimated costs for activity cost pools and other item(s) are as follows: Machining $500000 Assembling 140000 Advertising 450000 Inspecting and testing 115000 Total estimated overhead is O $755000. O $1205000 O $1090000. O $640000. View Policies Current Attempt in Progress Kiner Co. computed an overhead rate for machining costs ($420000) of $5 per machine hour. Machining costs are driven by machine hours. If computed based on direct labor hours, the overhead rate for machining costs would be $10 per direct labor hour. The company produces two products, Cape and Chap.Cape requires 50400 machine hours and 20000 direct labor hours, while Chap requires 33600 machine hours and 30000 direct labor hours. Using activity-based costing, machining costs assigned to each product is Cape Chap $220657 $199343 $200000 $300000 O $252000 $168000 $750000 $250000
