ACC 202: Chapter 19
divisions A & B have estimated manufacturing overhead costs of $160,000 and $340,000. division A uses machine hours as the allocation base, and division B uses direct labor hours as the allocation base. the total estimated machine hours were 31,000 and direct labor hours were 22,000 for the year. calculate the predetermined overhead allocation rates A: $5.16 & $15.45 B: $15.45 & $5.16 C: $7.27 & $10.97 D: $10.97 & $7.27
a
modiste inc. manufacturers two kinds of bags-totes and satchels. the company allocates manufacturing overhead using a single plant wide rate with direct labor costs as the allocation base. estimated overhead costs for the year are 24,000. additional estimated information is given below direct materials cost per unit > $33 & $43 direct labor costs per unit > $50 & $61 number of units > 530 & 380 A: 90.57% B: 48.31% C: 96.58% D: 1.36%
b
an activity based costing system is developed in four steps: A: compute the predetermined overhead allocation rate for each activity B: identify activities and estimate their total costs C: identity the cost driver for each drivers allocation base D: allocated the indirect costs to the cost object which of the following is the correct order? A) a, b, c, d B) c, a, b, d C) b, c, a, d D) b, a, c, d
c
just in time costing systems use a combined account for raw materials inventory and work in process inventory known as the... A: raw material inventory account B: work in process inventory account C: raw and in process inventory account D: process account
c
the activity based costing system improves the allocation of... A: indirect manufacturing costs B: direct labor C: direct materials D: sales commissions
c
using the activity based costing system. each ceiling fan has 20 parts. the direct materials cost is $70, and each ceiling fan requires 4.00 hours of machine time to manufacture. materials handling > number of parts > 0.07 machining > machine hours > 6.20 assembling > number of parts > 0.30 packaging > number of finished units > 3.30
c
a furniture corporation manufactures two models of furniture standard and deluxe. the total estimated manufacturing overhead costs are 64,300. the following estimates are available direct materials cost per unit > $240 & $280 direct labor costs per unit > $120 & $135 number of units > 250 & 500 if the company uses direct labor costs as its base to allocate manufacturing overhead. calculate the predetermined overhead rate. A: 32.15% B: 33.84% C: 190.52% D: 65.95%
d
phoenix inc. manufactures widgets. the target sales price is $440 per unit. the company desires a 40% net profit margin on its products. what is the companies target full-product cost per unit using target pricing A: 176 B: 616 C: 704 D: 264
d
using the activity based costing system. each ceiling fan has 20 separate parts. the direct materials cost is $95, and each ceiling fan requires 3.00 hours of machine time to manufacture. materials handling > number of parts > 0.05 machining > machine hours > 6.00 assembling > number of parts > 0.40 packaging > number of finished units > 2.10 what is the cost of machine per ceiling fan? A: 18.00 B: 95.00 C: 120.00 D: 199.50
d
