Question :
61. The Kaumajet Factory produces two products – table lamps and : 1251766
61. The Kaumajet Factory produces two products – table lamps and desk lamps. It has two separate departments – finishing and production. The overhead budget for the finishing department is $550,000, using 500,000 direct labor hours. The overhead budget for the production department is $400,000 using 80,000 direct labor hours.
If the budget estimates that a table lamp will require 2 hours of finishing and 1 hours of production, how much factory overhead will be allocated to each unit of table lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours?
A. $6.33
B. $4.91
C. $5.00
D. $7.20
62. The Kaumajet Factory produces two products – table lamps and desk lamps. It has two separate departments – finishing and production. The overhead budget for the finishing department is $550,000, using 500,000 direct labor hours. The overhead budget for the production department is $400,000 using 80,000 direct labor hours.
If the budget estimates that a desk lamp will require 1 hours of finishing and 2 hours of production, how much factory overhead will be allocated to each unit of desk lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours?
A. $11.10
B. $4.91
C. $5.00
D. $7.20
63. The Kaumajet Factory produces two products – table lamps and desk lamps. It has two separate departments – finishing and production. The overhead budget for the finishing department is $550,000, using 500,000 direct labor hours. The overhead budget for the production department is $400,000 using 80,000 direct labor hours.
If the budget estimates that a table lamp will require 2 hours of finishing and 1 hours of production, what is the total amount of factory overhead to be allocated to table lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours, if 75,000 units are produced?
A. $368,250
B. $540,000
C. $832,500
D. $475,000
64. The Kaumajet Factory produces two products – table lamps and desk lamps. It has two separate departments – finishing and production. The overhead budget for the finishing department is $550,000, using 500,000 direct labor hours. The overhead budget for the production department is $400,000 using 80,000 direct labor hours.
If the budget estimates that a desk lamp will require 1 hours of finishing and 2 hours of production, what is the total amount of factory overhead to be allocated to desk lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours, if 26,000 units are produced?
A. $540,000
B. $187,200
C. $475,000
D. $288,600
65. Using multiple department factory overhead rates instead of a single plantwide factory overhead rate:
A. results in more accurate product costs
B. results in distorted product costs
C. is simpler and less expensive than a plantwide rate
D. applies overhead costs to all departments equally
66. Scoresby Co. uses 3 machine hours and 1 direct labor hour to produce Product X. It uses 4 machine hours and 8 direct labor hours to produce Product Y. Scoresby’s Assembly and Finishing Departments have factory overhead rates of $240 per machine hour and $160 per direct labor hour, respectively. How much overhead cost will be charged to the two products?
A. Product X = $1,600; Product Y = $4,800
B. Product X = $400; Product Y = $400
C. Product X = $880; Product Y = $2,240
D. Product X = $720; Product Y = $1,280
67. Using a plantwide factory overhead rate distorts product costs when:
A. products require different ratios of allocation-base usage in each production department
B. significant differences exist in the factory overhead rates used across different production departments
C. both A and B are true
D. neither A nor B are true
68. The Aleutian Company produces two products, Rings and Dings. They are manufactured in two departments, Fabrication and assembly. Data for the products and departments are listed below.
ProductNumber of unitsLabor hrs
per unitMachine hours
per unit
Rings1,00046
Dings2,00039
All of the machine hours take place in the Fabrication department, which has an estimated overhead of $90,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $105,000.
The Aleutian Company uses a departmental overhead rates. The fabrication department uses machine hours for an allocation base, and the assembly department uses labor hours.
What is the assembly department overhead rate per labor hour?
A. $10.50
B. $19.50
C. $3.75
D. $4.38
69. The Aleutian Company produces two products, Rings and Dings. They are manufactured in two departments, Fabrication and assembly. Data for the products and departments are listed below.
ProductNumber of unitsLabor hrs
per unitMachine hours
per unit
Rings1,00046
Dings2,00039
All of the machine hours take place in the Fabrication department, which has an estimated overhead of $90,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $105,000.
The Aleutian Company uses a departmental overhead rates. The fabrication department uses machine hours for an allocation base, and the assembly department uses labor hours.
What is the overhead cost per unit for Rings?
A. $65.25
B. $23.25
C. $44.10
D. $64.50
70. The Aleutian Company produces two products, Rings and Dings. They are manufactured in two departments, Fabrication and assembly. Data for the products and departments are listed below.
ProductNumber of unitsLabor hrs
per unitMachine hours
per unit
Rings1,00046
Dings2,00039
All of the machine hours take place in the Fabrication department, which has an estimated overhead of $90,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $105,000.
The Aleutian Company uses a departmental overhead rates. The fabrication department uses machine hours for an allocation base, and the assembly department uses labor hours.
What is the overhead cost per unit for Dings?
A. $65.25
B. $56.75
C. $23.25
D. $64.50
