Question : 166.Superior Products Manufacturing identified the following data in its two : 1258539

166.Superior Products Manufacturing identified the following data in its two production departments: 

AssemblyFinishing

Manufacturing overhead costs$225,000$420,000

Direct labor hours worked6,600 DLH10,000 DLH

Machine hours used2,400 MH5,200 MH

Compute departmental overhead rates assuming the Assembly rate is based on machine hours and the Finishing rate is based on direct labor hours.    

167.Fischer Company identified the following activities, costs, and activity drivers: 

ActivityExpected CostsExpected Activity

Handling parts$425,00025,000 parts in stock

Inspecting product$390,000940 batches

Processing purchase orders$220,000440 orders

Designing packaging$230,0005 models

a. Compute a plantwide overhead rate assuming the company assigns overhead based on 70,000 budgeted direct labor hours (Round to two decimals). b. Compute separate rates for each of the four activities using the activity based costing.  168.Assume New Belgium Brewing Company manufactures and distributes three types of beer and that estimated per unit product costs and related information for the next year are shown in the following table: 

Blue PaddleSomersaultCocoa Mole Ale

Cost data per unit:

Direct materials$100,000$500,000$750,000

Direct labor$3,600$4,800$6,000

Overhead   $12,000   $16,000   $20,000

Total product cost per unit  $115,600  $520,800  $776,000

Machine hours per unit30 MH40 MH50 MH

Number of units produced per year30 units20 units10 units

a. If New Belgium Brewing Company uses a plantwide overhead rate based on machine hours, what is the total product cost per unit of Cocoa Mole Ale? b. Blue Paddle is a traditional brew made in large quantities with long production runs. Somersault is a seasonal beer made in small batches. Cocoa Mole Ale is a specialty beer also made in small batches. Which of the overhead allocation methods studied in this chapter would you recommend that New Belgium Brewing Company use and why?    

169.Time Bender Company makes watches and clocks. The following estimated data are available for the company’s next fiscal year: Total direct labor costs: $1,700,000 Total setup costs: $190,000 

WatchesClocks

Expected production800,000100,000

Direct labor hours needed68,000 DLH17,000 DLH

Machine setups needed1,000 setups1,000 setups

Determine the setup cost per unit for the watches and the clocks if setup costs are assigned using aplantwide overhead rate based on direct labor hours. (Round to two decimal places.)   170.Base Runner, Inc. manufactures baseball bats that go through two operations, cutting and sanding, before they are complete. Expected costs and activities for the two departments are shown in the following table: 

CuttingSanding

Direct labor hours50,000 DLH5,000 DLH

Machine hours25,000 MH50,000 MH

Overhead costs$50,000$37,500

a. Compute a departmental overhead rate for the cutting department based on machine hours. b. Compute a departmental overhead rate for the sanding department based on machine hours.    

171.Blast Rocket Company manufactures candy-coated popcorn treats that go through two operations, popping and baking, before they are complete. Expected costs and activities for the two departments are shown in the following table: 

PoppingBaking

Direct labor hours238,000 DLH50,000 DLH

Machine hours25,000 MH141,500 MH

Overhead costs$357,000$452,800

a. Compute a departmental overhead rate for the popping department based on direct labor hours. b. Compute a departmental overhead rate for the baking department based on machine hours.  172.Freeze Frame, Inc. produces cameras that require three processes, A, B, and C, to complete. Digital camera model #789 is the best-selling of all the many types of cameras produced. Information related to the 550,000 units of digital camera model #789 produced annually is shown below. 

Direct materials$450,000

Direct labor

Department A (7,000 DLH × $21 per DLH)$147,000

Department B (25,000 DLH × $19 per DLH)$475,000

Department C (10,000 DLH × $26 per DLH)$260,000

Machine Hours

Department A42,000 MH

Department B23,000 MH

Department C38,000 MH

Freeze Frame’s total expected overhead costs and related overhead data are shown below: 

Department ADepartment BDepartment C

Direct labor hours90,000 DLH75,000 DLH42,000 DLH

Machine hours67,500 MH135,000 MH53,200 MH

Manufacturing overhead costs       $540,000$675,000              $399,000

a. Compute a departmental overhead rate for department A based on direct labor hours. b. How much overhead is associated with model 789 from department A? c. Compute a departmental overhead rate for department B based on direct labor hours. d. How much overhead is associated with model 789 from department B? e. Compute a departmental overhead rate for department C based on direct labor hours. f. How much overhead is associated with model 789 from department C? g. What is the per unit cost of the 550,000 units of model 789?