Waterway, Inc. produces two types of gas grills: a family model and a deluxe model. Waterway's controller has decided to use a plantwide overhead rate based on direct labor costs. The president of the company recently heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company's operations: Family Model Deluxe Model Direct labor costs $74,400 $148,800 Machine hours 2,000 2.000 Setup hours 200 800 Total estimated overhead costs are $446,400. Overhead cost allocated to the machining activity cost pool is $267,840 and $178,560 is allocated to the machine setup activity cost pool. (a Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, e.g. 15.25.) Overhead rate $ Crane Toys & Games, Inc. manufactures specialty toys. Crane uses a traditional product costing system to assign overhead costs uniformly to all products. To meet industry safety standards and to assure its customers of safe and durable toys, Crane assigns its quality-control overhead costs to all products at a rate of 22% of direct labor costs. Its direct labor cost for the month of August for its toddler line of toys is $338,000. In response to repeated requests from its financial vice president, Crane's management agrees to adopt activity-based costing. Data relating to the toddler line of toys for the month of August are as follows: Number of Cost Overhead Drivers Used Activity Cost Pools Cost Drivers Rate per Activity Materials Inspection Number of pounds $0.70 per pound 51,000 pounds Assembly Line Inspection Number of finished toys $0.16 per toy 213,000 toys National Toy Association Certification Retail orders $2.00 per order 1,100 orders (a) Compute the quality-control overhead cost to be assigned to the toddler toy line for the month of August (1) using the traditional product costing system (direct labor is the cost driver), and (2) using activity-based costing. Quality-Control Overhead Cost Traditional costing Activity-based costing Sunland Company produces two products, Flower and Planter. Flower is a high-volume item totaling 20000 units annually. Planter is a low-volume item totaling only 6000 units per year. Flower requires one hour of direct labor for completion, while each unit of Planter requires 2 hours. Therefore, total annual direct labor hours are 32000 (20000 + 12000). Estimated annual manufacturing overhead costs are $860000. Sunland uses a traditional costing system and assigns overhead based on direct labor hours. Each unit of Planter would be assigned overhead of O $26.88. O $33.08. O $53.75. O need more information to compute.An example of a cost which would not be assigned to a manufacturing overhead activity cost pool is O indirect salaries. O freightwout. O depreciation on manufacturing equipment. 0 factory supplies. One of Shefeld Company's activity cost pools is inspection which has estimated overhead costs of $330000. Shefeld produces throw rugs (700 inspections) and area rugs (1300 inspections). what amount of the inspecting activity cost pool should be assigned to throw rugs? O $115500. 0 $165000, 0 $177692. 0 $330000. One of Coronado Company's activity cost pools is machine setups with estimated overhead of $220000. Coronado produces sparklers (370 setups) and lighters (630 setups). How much ofthe machine setup cost pool should be assigned to sparklers? O $220000 0 $81400 O $110000 0 $138600 Bramble Company manufactures two products. Board 12 and Case 165. Bramble's overhead costs consist of setting up machines. 332120000; machining, $5050000: and inspecting, $1890000. Information on the two products and their estimated use of cost drivers is asfollows: Board 12 Case 165 Direct labor hours 15000 15200 Machine setups 600 400 Machine hours 24000 26000 Inspections 800 700 Overhead assigned to Board 12 using traditional costing using direct labor hours is O $4500000. 0 554356000. 0 233520500 0 $5436000. Crane Company used high and low data fromJune and July to determine its variable cost of $10 per unit. Additional information follows: Units Total Month produced costs June 1000 $ 16000 July 500 1 1000 If the company produces 800 units in August, what is its expected total cost? 0 $3333 0 $13000 0 $8000 0 $14000 If a company had a contribution margin of $2200000 and a contribution margin ratio of 40%, total variable costs must have been 0 353300000. 0 $1320000. O $5500000. O $880000. If Marigold Corp. has a unit contribution margin of $36 and a contribution margin ratio of 60%, what is the unit selling price? 0 $60. 0 $90. 0 $22. 0 $58. Waterway Industries produces tinted SPF 100 moisturizer that it sells for $110 each. Each bottle costs $15 of variable costs to make. Duringthe most recent quarter, 1400 bottles of moisturizerwere manufactured and sold. Fixed costs for the quarter were $23 per unit for a total of $32200. What is the company's contribution margin ratio? 0 14% O 15% O 23% O 86% Bonita Industries produces small lightweight camping trailers with rear kitchen facilities. The company's xed costs are $820000 per year and its variable costs are 60% of the unit selling price of $16000. How many campers must the company sell to earn a net income of $172000? 0 103 O 155 O 137 O 128 Fixed costs are $1000000 and the unit variable costs are 80% of the unit selling price. What is the breakeven point in sales dollars? 0 353375000 0 $4000000 O $5000000 O $1250000 A company requires 5 1400000 in sales to meet its net income target. Its contribution margin is 30% and xed costs are $300000. What is the company's target net income? 0 $420000 0 $390000 0 $610000 0 $120000 Coronado reported the following results from the sale of 5000 units in May: sales $300000, variable costs $165000, xed costs $70000. and net income $65000. Assume that Coronado increases its selling price by 5% on June 1. How many units will have to be sold in June to maintain the same level of net income? 0 4500. O 4725. O 4750. O 5000. The contribution margin ratio increases when O xed costs increase. O xed costs decrease. O variable costs as a percentage of sales decrease. 0 variable costs as a percentage of sales increase. During the rst quarter of the year, Sunland Company generated sales revenue of $1250000 on sales of 50000 units of its wireless earbuds. The break-even point is 30000 units. What is the company's margin of safety ratio? 0 10% O 20% O 30% O 40% Which cost driver would an "Ordering and Receiving Materials" cost pool most likely have? 0 machine hours O number of setups O number of purchase orders O number of inspection tests Shefeld Industries has the following overhead costs and cost drivers. Direct iabor hours are estimated at 100000 for the year. The following information is available regarding activity cost pools. cost drivers, total estimated overhead costs. and estimated use of activities per product: Activity Cost Poo! Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders $ 125000 500 orders Machine Setup Setups 262500 450 setups Machining Machine hours 1373500 125000 MH Assembly Parts 1260000 1000000 parts Inspection Inspections 345000 500 inspections If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is 0 $1.25 per direct labor hour. 0 $250 per order. 0 $0.13 per part. 0 $6732 per order. Crane Co. estimates that it will incur $805000 of overhead costs each year in its three main departments, machining ($460000), inspections ($230000) and packing ($115000). 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 Crane's two products and their estimated use of cost drivers is as follows: Product X Product Y Machining hours 1000 3000 Inspections 100 500 Orders packed 350 650 Direct labor hours 1700 1800 If traditional costing based on direct labor hours is used, how much overhead will be assigned to Product X? O $193583 O $278654 O $391000 O $402500