z Cont. Batch costs Number of batches Engineering changes Number of engineering hours Total estimated manufacturing overhead for the year $196,000 $188,950 $3,600,200 Total estimated direct labor hours for the company for the year are 100,250 hours. The company is evaluating whether it should use an activity-based costing system in place of its traditional costing system. Additional information about production needed for the activity-based costing system follows: Zips Dees Total Direct labor hours 61,250 39,000 100,250 Batches 2,350 400 2,750 Engineering hours 2,150 700 2,850 The amount of manufacturing overhead that would be allocated to one unit of Dees using an activity based costing system would be closest to (Do not round intermediate calculations and round the final answer to the nearest cent.) O A. $33.99 O B. $20.88 O C. $92.31 OD. $54.11 Vintage Fun reproduces old-fashioned style roller skates and skateboards. The annual production and sales of roller skates is 900 units, while 1,790 skateboards are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Roller skates require 4.5 direct labor hours per unit, while skateboards require 3.25 direct labor hours per unit. The total estimated overhead for the period is $114,100. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity based costing system, it would have the following three activity cost pools: Expected activity Activity cost pool Setup costs Engineering costs Maintenance costs Estimated overhead cost $6.450 $16,500 $91,150 Roller skates 355 490 2,275 Skateboards 280 640 2,148 Total 635 1,130 4,423 The overhead cost per skateboard using an activity-based costing system would be closest to (Round all answers to two decimal places.) O A. $46.69 B. $62.73 OC. $45.37 OD. $31.54 Cross Roads Manufacturing currently uses a traditional costing system. The company allocates overhead to its two products, Zips and Dees, using a predetermined manufacturing overhead rate based on direct labor hours. Here is data related to the company's two products: Zips Dees Direct materials per unit $149 $113 Direct labor per unit $57 $50 Direct labor hours per unit 2.5 1 Annual production 24,500 39,000 Information about the company's estimated manufacturing overhead for the year follows: Activities Supervision and maintenance Batch costs Activity measures Direct labor hours Number of batches Estimated overhead cost $3,215,250 $196,000 O A. $33.99 OB. $20.88 O C. $92.31 D. $54.11
