Which of the following must be considered when choosing an activity cost driver in activity-based costing? 9 Multiple Choice The marketing strategy of the products being produced. The average number of machine hours used. The availability of reliable data and metrics. The average number of direct labor hours used. The product sales price. Which of the following activity drivers would work best to allocate janitorial costs? 10 Multiple Choice Machine hours. Direct labor hours. Square footage. Number of purchase orders generated. O Machine setups. Use the following information calculate the predetermined factory overhead rate that would be used to allocate the estimated utility costs for a factory. 11 Estimated purchasing overhead costs Square footage Estimated machine hours Estimated direct labor hours Estimated purchase orders to be generated Estimated number of inspections $ 300,000 15,000 sq ft 20,000 Mhrs 30,000 Dlhrs 1,500 P.O.'s 2.000 inspections Multiple Choice $ 15 per machine hour. 0 $ 10 per direct labor hour. $ 20 per square foot. 0 $ 200 per purchase order. $ 150 per inspection. 12 A company estimates that overhead costs for the next year will be $5,200,000 for indirect labor and $1,200,000 for factory utilities. The company uses machine hours as its overhead allocation base. If the company estimates that 130,000 direct labor hours and 100,000 machine hours will be incurred next year, what is the company's plantwide predetermined factory overhead rate? Multiple Choice $ 52.00 per machine hour. $ 49.23 per direct labor hour. $ 27.93 per machine hour. O $ 64.00 per machine hour. $ 27.93 per direct labor hour. 13 A company's estimated total factory overhead for the upcoming year is $ 350,000. The company allocates 80% of this overhead to Department A and 20% to Department B. Each department then calculates its own predetermined factory overhead rate. Department A bases its overhead rate on direct labor hours and 10,000 direct labor hours are estimated for the next year. Department B bases it overhead rate on machine hours and 20,000 machine hours are estimated for the next year. What is the predetermined factory overhead rate for Department B? Multiple Choice $28.00 per direct labor hour. O $ 4.50 per machine hour. O O $ 3.50 per machine hour. O $ 17,50 per direct labor hour. $14.00 per machine hour. 14 A company uses Activity Based Costing to determine the costs of the products that it manufactures, Predetermined factory overhead rates, per cost type, are shown below along with the actual activity for Jobs 501A and 8008, both of which were completed in mid July, How much factory overhead will be allocated to Job 501A7 Indirect labor rate Machine depreciation rate Purchasing department rate $25 per direct labor hour S 45 per machine hour $ 20 per purchase order issued July actuals - Job 501A July actuals - Job 501A July actuals - Job 501A 100 direct labor hours 150 machine hours 40 purchase orders issued July actuals - Job 300B July actuals - Job 800B July actuals - Job 800B 65 direct labor hours 75 machine hours 25 purchase orders issued Multiple Choice O $ 7,775 0 $ 10,050 O $ 5,500. $ 15.100. $ 12,300, On March 31, the end of the first quarter, a company had the following balances in its three factory overhead accounts: Supervision costs $ 200 debit Factory Rental costs $ 400 credit: and Machine depreciation $ 500 debit. What journal entry is required to reset these accounts back to zero in preparation for the next quarter? 15 Multiple Choice FOH-Factory Rental Finished Goods FOH - Supervision FOH - Machine Depreciation $ 400 $1300 $ 200 $ 500 O O FOH-Factory Rental Cost of Goods Sold FOH - Supervision FOH - Machine Depreciation $ 400 S 300 $200 $ 500 $ 200 $ 500 FOH - Supervision FOH - Machine Depreciation FOH - Factory Rental Cost of Goods Sold 5 400 S 300 FOH - Supervision FOH - Machine Depreciation FOH - Factory Rental Factory Overhead $200 $ 500 $ 400 S 300 O FOH-Supervision FOH - Factory Rental FOH - Machine Depreciation Cost of Goods Sold $ 200 6400 $ 500 $100 Which of the following must be considered when choosing an activity cost driver in activity-based costing 9 Multiple Choice The marketing strategy of the products being produced. The average number of machine hours used The availability of reliable data and metrics. The average number of direct labor hours used. The product sales price Which of the following activity drivers would work best to allocate janitorial costs? 10 Multiple Choice Machine hours. Direct labor hours. Square footage Number of purchase orders generated. Machine setups 11 Use the following information to calculate the predetermined factory overhead rate that would be used to allocate the estimated utility costs for a factory Estimated purchasing overhead costs $ 300,000 Square footage 15.000 sq ft Estimated machine hours 20.000 Mhes Estimated direct labor hours 30.000 Dihs Estimated purchase orders to be generated 1500 POSS Estimated number of inspections 2,000 inspections Multiple Choice $ 15 per machine hour. $10 per direct labor hout $20 per square foot 0 $ 200 per purchase order $ 150 per inspection 0 12 A company estimates that overhead costs for the next year will be $5,200,000 for indirect labor and $1.200,000 for factory utilities. The company uses machine hours as its overhead allocation base. If the company estimates that 130,000 direct labor hours and 100,000 machine hours will be incurred next year, what is the company's plantwide predetermined factory overhead rate? Multiple Choice $ 52.00 per machine hour. $49.23 per direct labor hour. $ 27.93 per machine hour. $ 64.00 per machine hour $ 27.93 per direct labor hour 13 A company's estimated total factory overhead for the upcoming year is $ 350,000. The company locates 80% of this overhead to Department A and 20% to Department B. Each department then calculates its own predetermined factory overhead rate. Department A bases its overhead rate on direct labor hours and 10,000 direct labor hours are estimated for the next year. Department Bbases it overhead rate on machine hours and 20,000 machine hours are estimated for the next year. What is the predetermined factory overhead rate for Department ? Multiple Choice $ 28,00 per directlebor hour $4.50 per machine how $3.00 per machine hou 0 $17.50 per direct labor hour $400 per machine hour 12 A company estimates that overhead costs for the next year will be $5,200,000 for indirect labor and $1.200,000 for factory utilities. The company uses machine hours as its overhead allocation base. If the company estimates that 130,000 direct labor hours and 100,000 machine hours will be incurred next year, what is the company's plantwide predetermined factory overhead rate? Multiple Choice $ 52.00 per machine hour. $49.23 per direct labor hour. $ 27.93 per machine hour. $ 64.00 per machine hour $ 27.93 per direct labor hour 14 A company uses Activity Based Costing to determine the cases of the products that it manufactures. Predetermined factory overhead rates, per cost type are shown below along with the actual activity for Jobs 501 and 8006, both of which were completed in midly How much factory overhead will be located to Job 50A? Indirect laborate $25 per direct bor hour Machine depreciation rate 5 45 per machine hour Purchasing department rate 520 per purchase order sued July actus -90 SONA 500 direct labor hours July actuals - Job 501 150 machine hours July actuais - Job 501 40 purchase ordered July actuais - 300 BOOB 65 direct labor hours July actuais BOB 75 machine hours July actuais - Job BOB 25 purchase orders issued Multiple Choice o $ 7,775 0 $ 1050 0 $5.500 $15.900 O $12.300 On March 31. the end of the first quarter a company had the following balances in its three factory overhead accounts: Supervision costs $ 200 debit Factory Rental costs $400 credit: and Machine depreciation $ 500 debit. What journal entry is required to reset these accounts back to zero in preparation for the next quarter? 15 Multiple Choice $ 400 Foods FOH-Factory Rental FOH - Supervision TOHMAchiron 5200 o $400 FOH Extos Rental Cos of Goods Sold FOH Supervision FOH - Machine Depection 5200 51500 FOH. Seison TOH Mhine Depreciation FOH-Factory Rente Cost of Goods $7200 51500 $200 $1200 FOH - Supervision IPOH Machine De FOH-Factory Rental Factory Overfend 5200 $1200 FOR person TOH Factory Rental FOH MacNDepreciacon 5500