Question :
70. The Aleutian Company produces two products, Rings and Dings. They : 1227097
70. The Aleutian Company produces two products, Rings and Dings. 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
Rings
1,000
4
6
Dings
2,000
3
9
All of the machine hours take place in the Fabrication department, which has an estimated overhead of $90,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $105,000.The Aleutian Company uses a departmental overhead rates. The fabrication department uses machine hours for an allocation base, and the assembly department uses labor hours. What is the overhead cost per unit for Dings? A. $65.25B. $56.75C. $23.25D. $64.50
71. The Aleutian Company produces two products, Rings and Dings. 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
Rings
1,000
4
6
Dings
2,000
3
9
All of the machine hours take place in the Fabrication department, which has an estimated overhead of $90,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $105,000.The Aleutian Company uses a departmental overhead rates. The fabrication department uses machine hours for an allocation base, and the assembly department uses labor hours. What is the fabrication department overhead rate per machine hour? A. $10.50B. $9.00C. $8.12D. $3.75
72. All of the following can be used as an allocation base for calculating factory overhead rates except: A. direct labor dollarsB. direct labor hoursC. square footageD. total overhead costs
73. Which two are the most common allocation bases for factory overhead? A. Square footage and machine hoursB. Direct labor hours and machine hoursC. Direct labor hours and factory expensesD. Machine hours and factory expenses
74. 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 rate for procurement per purchase order. A. $43.53B. $18.50C. $15.42D. $37.00
75. 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 rate per production order for scheduling. A. $200.00B. $20.00C. $29.41D. $10.42
76. 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 rate for materials handling per move. A. $58.82B. $50.00C. $20.83D. $80.65
77. 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 rate for product development per change. A. $73,000B. $8,588C. $30,417D. $16,222
78. 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 rate for production per machine hour. A. $62.50B. $150.00C. $75.00D. $176.47
79. 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 disk drive unit. A. $92.25B. $130.69C. $394.12D. $279.57
