Question : 41. Which of the following does not support managerial decisions involving : 1239677

 

 

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. Pinacle Corp. budgeted $350,000 of overhead cost for 2012. Actual overhead costs for the year were $325,000. Pinacle’s plantwide allocation base, machine hours, was budgeted at 50,000 hours. Actual machine hours were 40,000. A total of 100,000 units was budgeted to be produced and 98,000 units were actually produced. Pinacle’s plantwide factory overhead rate for 2012 is: A. $8.13 per machine hourB. $7.00 per machine hourC. $6.50 per machine hourD. $8.75 per machine hour

 

43. Everest Co. uses a plantwide 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. All of the above

 

44. Adirondak Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead.

 

Overhead

TotalDirectLabor Hours

DLH per Product

 A 

 B 

Painting Dept.

$250,000

10,000

16

 4

Finishing Dept.

  75,000

12,000

 4

16

   Totals

$325,000

22,000

20

20

 

========

======

==

==

 

 

 

 

 

Calculate the plantwide factory overhead rate: A. $25.00 per dlhB. $0.07 per dlhC. $14.77 per dlhD. $ 6.25 per dlh

 

45. Adirondak Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead.

 

Overhead

TotalDirectLabor Hours

DLH per Product

 A 

 B 

Painting Dept.

$250,000

10,000

16

 4

Finishing Dept.

  75,000

12,000

 4

16

   Totals

$325,000

22,000

20

20

 

========

======

==

==

 

 

 

 

 

Calculate the overhead rate per unit for Product A in painting department: A. $236.32 per unitB. $325.00 per unitC. $147.70 per unitD. $161.00 per unit

 

46. Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours.

 

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

 

========

==========

======

  ======

 

 

 

 

 

Using a single plantwide rate, determine the overhead rate per unit for Product B: A. $496.00B. $144.00C. $640.00D. $320.00

 

47. Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours.

 

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

 

========

==========

======

  ======

 

 

 

 

 

Determine the overhead rate in the Painting Department for each unit of Product B if the company uses a multiple department rate system. A. $12.40 per dlhB. $24.80 per dlhC. $7.20 per dlhD. $16.00 per dlh

 

48. Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours.

 

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

 

========

==========

======

  ======

 

 

 

 

 

Determine the overhead rate in the Finishing Department for each unit of Product A if the company uses a multiple department rate system. A. $24.80 per dlhB. $12.40 per dlhC. $16.00 per dlhD. $7.20 per dlh

 

49. Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours.

 

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

 

========

==========

======

  ======

 

 

 

 

 

Determine the overhead from both production departments allocated to each unit of Product A if the company uses a multiple department rate system. A. $396.80 per unitB. $425.60 per unitC. $320.00 per unitD. $214.40 per unit

 

50. Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours.

 

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

 

========

==========

======

  ======

 

 

 

 

 

Determine the overhead from both production departments allocated to each unit of Product B if the company uses a multiple department rate system. A. $425.60 per unitB. $115.20 per unitC. $214.40 per unitD. $320.00 per unit

 

 

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