41. Which of the following does not support managerial decisions involving accurate product costing? A. product constraintsB. emphasis of a product lineC. product mixD. product price
42. Lasso Corp. budgeted $250,000 of overhead cost for 2008. Actual overhead costs for the year were $240,000. Lasso’s plant-wide allocation base, machine hours, was budgeted at 50,000 hours. Actual machine hours were 40,000. Budgeted units to be produced are 100,000 units. Lasso’s plant-wide factory overhead rate for 2008 is: A. $1.25 per unitB. $6.00 per machine hourC. $6.25 per machine hourD. $5.00 per machine hour
43. Hoskins Co. uses a plant-wide factory overhead rate based on direct labor hours. Overhead costs would be overcharged to which of the following departments? A. A labor-intensive departmentB. A capital-intensive departmentC. A materials-intensive departmentD. None of the above
44. Stewart Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plant-wide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. From the following information, determine the plant-wide factory overhead rate:
Overhead
DirectLabor Hours
Product
A
B
Painting Dept.
$248,000
10,000
16
4
Finishing Dept.
72,000
10,000
4
16
Totals
$320,000
20,000
20
20
========
======
==
==
A. $24.80 per dlhB. $32.00 per dlhC. $16.00 per dlhD. $ 7.20 per dlh
45. Stewart Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plant-wide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. From the following information, using a single plant-wide rate, determine the overhead rate per unit for Product A:
Overhead
Direct LaborHours (dlh)
Product
A
B
Painting Dept.
$248,000
10,000 dlh
16 dlh
4 dlh
Finishing Dept.
72,000
10,000
4
16
Totals
$320,000
20,000 dlh
20 dlh
20 dlh
========
==========
======
======
A. $320.00 per unitB. $496.00 per unitC. $144.00 per unitD. $640.00 per unit
46. Stewart Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plant-wide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. From the following information, using a single plant-wide rate, determine the overhead rate per unit for Product B:
Overhead
Direct LaborHours (dlh)
Product
A
B
Painting Dept.
$248,000
10,000 dlh
16 dlh
4 dlh
Finishing Dept.
72,000
10,000
4
16
Totals
$320,000
20,000 dlh
20 dlh
20 dlh
========
==========
======
======
A. $496.00B. $144.00C. $640.00D. $320.00
47. The Delph Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and assembly. Data for the products and departments are listed below.
Product
Number of units
Labor hrsper unit
Machine hours per unit
Blinks
1,000
4
5
Dinks
2,000
2
8
All of the Machine hours take place in the Fabrication department, which has an estimated overhead of $84,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $72,000. The Delph Company uses a single overhead rate to apply all overhead costs based on labor hours. What is the overhead cost per unit for Blinks? A. $78B. $18C. $72D. $14.40
48. The Delph Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and assembly. Data for the products and departments are listed below.
Product
Number of units
Labor hrs per unit
Machine hours per unit
Blinks
1,000
4
5
Dinks
2,000
2
8
All of the Machine hours take place in the Fabrication department, which has an estimated overhead of $84,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $72,000.The Delph Company uses a single overhead rate to apply all overhead costs based on labor hours. What is the overhead cost per unit for Dinks? A. $36B. $39C. $19.50D. $52
49. The Delph Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and assembly. Data for the products and departments are listed below.
Product
Number ofunits
Labor hrs per unit
Machine hours per unit
Blinks
1,000
4
5
Dinks
2,000
2
8
All of the Machine hours take place in the Fabrication department, which has an estimated overhead of $84,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $72,000.The Delph Company uses a single overhead rate to apply all overhead costs based on labor hours. What would the single plant-wide rate be? A. $9B. $52C. $19.50D. $18.00
50. Common allocation bases are A. direct labor dollars, direct labor hours, and square footageB. direct labor dollars, direct labor hours, machine hoursC. direct labor dollars, direct labor hours, and machine dollarsD. machine dollars, direct labor dollars, machine hours
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