Question :
71. The Delph Company produces two products, Blinks and Dinks. They : 1233961
71. 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 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 Dinks? A. $50B. $56C. $64D. $44
72. 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 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. $7.43B. $16.80C. $28.00D. $4.00
73. 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 expenses
74. 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
75. Phelan 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 information, along with the estimated activity-base information, is provided below.
ActivityCost
Activity Base
Procurement
$ 360,000
Number of purchase orders
Scheduling
240,000
Number of production orders
Materials handling
480,000
Number of moves
Product development
720,000
Number of engineering changes
Production
1,420,000
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
2,000
150
600
5
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. $192B. $20C. $80D. $71
76. Phelan 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 information, along with the estimated activity-base information, is provided below.
ActivityCost
Activity Base
Procurement
$ 360,000
Number of purchase orders
Scheduling
240,000
Number of production orders
Materials handling
480,000
Number of moves
Product development
720,000
Number of engineering changes
Production
1,420,000
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
2,000
150
600
5
8,000
4,000
Wire drives
12,000
800
4,000
25
10,000
2,500
Determine the activity rate per purchase order for scheduling. A. $192B. $20C. $80D. $71
77. Phelan 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 information, along with the estimated activity-base information, is provided below.
ActivityCost
Activity Base
Procurement
$ 360,000
Number of purchase orders
Scheduling
240,000
Number of production orders
Materials handling
480,000
Number of moves
Product development
720,000
Number of engineering changes
Production
1,420,000
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
2,000
150
600
5
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. $192B. $20C. $71D. $80
78. Phelan 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 information, along with the estimated activity-base information, is provided below.
ActivityCost
Activity Base
Procurement
$ 360,000
Number of purchase orders
Scheduling
240,000
Number of production orders
Materials handling
480,000
Number of moves
Product development
720,000
Number of engineering changes
Production
1,420,000
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
2,000
150
600
5
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. $72,000B. $28,000C. $36,000D. $18,000
79. Phelan 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 information, along with the estimated activity-base information, is provided below.
ActivityCost
Activity Base
Procurement
$ 360,000
Number of purchase orders
Scheduling
240,000
Number of production orders
Materials handling
480,000
Number of moves
Product development
720,000
Number of engineering changes
Production
1,420,000
Machine hours
Number of PurchaseOrders
Number of ProductionOrders
NumberofMoves
Number of EngineeringChanges
MachineHours
NumberofUnits
Disk drives
4,000
300
1,400
10
2,000
2,000
Tape drives
2,000
150
600
5
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. $20B. $192C. $71D. $80
80. Phelan 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 information, along with the estimated activity-base information, is provided below.
ActivityCost
Activity Base
Procurement
$ 360,000
Number of purchase orders
Scheduling
240,000
Number of production orders
Materials handling
480,000
Number of moves
Product development
720,000
Number of engineering changes
Production
1,420,000
Machine hours
Number of PurchaseOrders
Number of ProductionOrders
NumberofMoves
Number of EngineeringChanges
MachineHours
NumberofUnits
Disk drives
4,000
300
1,400
10
2,000
2,000
Tape drives
2,000
150
600
5
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. $193.70B. $192.00C. $142.90D. $285.80
