Question : 102.Tarnish Industries uses departmental overhead rates and planning a $1.80 : 1258530

 

102.Tarnish Industries uses departmental overhead rates and is planning on a $1.80 per direct labor hour overhead rate for the finishing department. Compute the estimated manufacturing overhead cost for the finishing department given the information shown in the table.    

A. $41,667

B. $288,900

C. $256,800

D. $146,700

E. $323,100

103.Tarnish Industries uses departmental overhead rates and is planning on a $2 per machine hour overhead rate for the molding department. Compute the estimated manufacturing overhead cost for the molding department given the information shown in the table.    

A. $195,000

B. $196,000

C. $163,000

D. $321,000

E. $471,000

104.Use the data for Wall Nuts, Inc. to compute departmental overhead rates based on machine hours in Department A and machine hours in Department B.    

A. $4.50 per MH in Dept. A; $4.50 per MH in Dept. B.

B. $7.50 per MH in Dept. A; $7.50 per MH in Dept. B.

C. $4.50 per MH in Dept. A; $7.50 per MH in Dept. B.

D. $2.70 per MH in Dept. A; $6.00 per MH in Dept. B.

E. $0.60 per MH in Dept. A; $0.80 per MH in Dept. B.

105.Use the data for Wall Nuts, Inc. to compute the dollar amount of overhead applied to each unit of oak paneling, assuming the company uses departmental overhead rates based on machine hours in Department A and machine hours in Department B.    

A. $8.70

B. $1.40

C. $14.40

D. $26.25

E. $41.00

106.Use the above data for Wall Nuts, Inc. to compute the total manufacturing cost per unit of oak paneling assuming the company uses departmental overhead rates based on machine hours in Department A and machine hours in Department B.    

A. $8.70

B. $18.20

C. $21.95

D. $27.30

E. $36.00

107.Aurora Corporation produces outdoor security lighting products. All products go through three processes before completion. Use the expected overhead costs and related data shown below to compute departmental overhead rates based on machine hours in Department A1A; based on direct labor hours in Department B2B; and machine hours in Department C3C. 

A. Dept. A: $10 per MH; Dept B: $2 per DLH; Dept C: $4 per MH.

B. Dept. A: $6 per MH; Dept B: $5 per DLH; Dept C: $3 per MH.

C. Dept. A: $10 per MH; Dept B: $5 per DLH; Dept C: $4 per MH.

D. Dept. A: $6 per MH; Dept B: $5 per DLH; Dept C: $4 per MH.

E. Dept. A: $10 per MH; Dept B: $2 per DLH; Dept C: $3 per MH.

108.Consider the following activities that take place in a veterinary clinic. (a.) Cleaning cages. (b.) Heating and air conditioning the clinic. (c.) Sending blood work to a lab. (d.) Dispensing medicine. Which of the following statements is true?    

A. Service entities cannot use ABC for overhead allocation.

B. Cleaning cages is a facility level activity.

C. Dispensing medicine is a facility level activity.

D. Heating and air conditioning the clinic is a facility level activity.

E. Sending blood work to a lab is a facility level activity.

109.Consider the following activities that take place in a medical clinic.(a.) Cleaning exam rooms.(b.) Heating and air conditioning the clinic.(c.) Sending blood work to a lab.(d.) Dispensing medicine.Which of the following statements is true?    

A. Cleaning rooms and heating the clinic are both unit level activities.

B. Sending blood work to the lab is a batch level activity.

C. Sending blood work and dispensing medicine are both batch level activities.

D. Cleaning rooms and dispensing medication are both product or service level activities.

E. Heating the clinic and dispensing medication are both batch level activities.

110.All of the following are examples of facility sustaining costs except:    

A. Costs of cleaning the workplace.

B. Costs of custodial work.

C. Costs of personnel support.

D. Costs of sampling product quality.

E. Costs of employee recreational facilities.

111.A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company’s three activity cost pools are shown in the following table: 

Budgeted Activity

Activity Cost PoolBudgeted CostProduct AProduct BProduct C

Activity 1$70,0006,0009,00020,000

Activity 2$45,0007,00015,0008,000

Activity 3$82,0002,5001,0001,625

Which of the following statements is true regarding this company’s activity rates?    

A. The activity rate under the activity-based costing system for Activity 2 is $2.00.

 

B. The activity rate under the activity-based costing system for Activity 2 is $16.00.

C. The activity rate under the activity-based costing system for Activity 2 is $1.50.

D. The activity rate under the activity-based costing system for Activity 2 is $19.50.

E. The activity rate under the activity-based costing system for Activity 2 is $2.81.

 

 

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