Question : 80. Panamint Systems Corporation estimating activity costs associated with producing disk : 1227083

 

 

80. Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. 

 

ActivityCost

Activity Base

Procurement

$  370,000 

Number of purchase orders

Scheduling

  250,000

Number of production orders

Materials handling

  500,000

Number of moves

Product development

  730,000

Number of engineering changes

Production

1,500,000

Machine hours

 

 

Number ofPurchaseOrders

Numberof ProductionOrders

NumberofMoves

Number of EngineeringChanges

MachineHours

NumberofUnits

Disk drives

4,000

300

1,400

10

 2,000

2,000

Tape drives

4,000

150

  800

 10

 8,000

4,000

Wire drives

12,000 

800

4,000

25

10,000

2,500

 

 

 

 

 

 

 

 

 

 

Determine the activity-based cost for each wire drive unit. A. $204.13B. $173.51C. $744.06D. $394.12

 

81. Determine the activity-based cost for each tape drive unit. A. $97.73B. $232.69C. $394.12D. $103.84

 

82. Which of the following is not a cost pool used with the activity-based costing method? A. direct labor hoursB. production setupsC. machine hoursD. all are ABC cost pools

 

83. Activity rates are determined by A. dividing the actual cost for each activity pool by the actual activity base for that pool.B. dividing the cost budgeted for each activity pool by the estimated activity base for that pool.C. dividing the actual cost for each activity pool by the estimated activity base for that pool.D. dividing the cost budgeted for each activity pool by the actual activity base in that pool.

 

84. Shubelik Company is changing to an activity-based costing method. They have determined that they will use three cost pools. They are setups, inspections, and assembly. Which of the following would be used as the activity base for assembly? A. number of direct labor hoursB. number of setupsC. number of inspectionsD. number of units to be produced

 

85. Given the following information, determine the activity rate for setups. 

Activity Pool

Activity Base

Budgeted Amount

Setups

10,000

$60,000

Inspections

24,000

$120,000

Assembly (DLH)

80,000

$400,000

 

 

 

 A. $58.00B. $6.00C. $.75D. $5.09

 

86. The Skagit Company manufactures Hooks and Nooks. The following shows the activities per product and total activity information: 

 

Setups

Inspections

Assembly (DLH)

Hooks – 4,000 units

1

4

1

Nooks – 8,000 units

2

1

3

 

 

 

 

 

 

 

 

 

      Activity Pool

Activity Base

Budgeted Amount

Setups

20,000

      $  60,000

Inspections

24,000

      120,000

Assembly (DLH)

28,000

      420,000

 

 

 

Calculate the total factory overhead to be charged to each unit of Hooks. A. $38.00B. $50.00C. $16.67D. $23.00

 

87. The Skagit Company manufactures Hooks and Nooks. The following shows the activities per product and total activity information: 

 

Setups

Inspections

Assembly (DLH)

Hooks – 4,000 units

1

4

1

Nooks – 8,000 units

2

1

3

 

 

 

 

 

 

 

 

 

      Activity Pool

Activity Base

Budgeted Amount

Setups

20,000

      $  60,000

Inspections

24,000

      120,000

Assembly (DLH)

28,000

      420,000

 

 

 

Calculate the total factory overhead to be charged to Nooks. A. $300,000B. $400,000C. $448,000D. $560,000

 

88. The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product and the total overhead information: 

 

Setups

Inspections

Assembly (DLH)

Small Lamps – 3,000 units

8,000

9,000

16,000

Desk Lamps – 6,000 units

16,000

15,000

12,000

 

 

 

 

 

 

 

 

 

Activity Pool

Activity Base

Budgeted Amount

Setups

24,000

$60,000

Inspections

24,000

$120,000

Assembly (DLH)

28,000

$280,000

 

 

 

Calculate the total factory overhead to be charged to desk lamps. A. $306,667B. $235,000C. $230,000D. $225,000

 

89. The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product and the total overhead information: 

 

Setups

Inspections

Assembly (DLH)

Small Lamps – 3,000 units

8,000

9,000

16,000

Desk Lamps – 6,000 units

16,000

15,000

12,000

 

 

 

 

 

 

 

 

 

Activity Pool

Activity Base

Budgeted Amount

Setups

24,000

$60,000

Inspections

24,000

$120,000

Assembly (DLH)

28,000

$280,000

 

 

 

Calculate the overhead per unit to be charged to small lamps. A. $75.00B. $39.17C. $38.33D. $17.50

 

 

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