Question : 71. The Aleutian Company produces two products, Rings and Dings. They : 1251767

 

 

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.
 

ProductNumber of unitsLabor hrs
per unitMachine hours
per unit

Rings1,00046

Dings2,00039

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. $10.50
B. $9.00
C. $8.12
D. $3.75

 

72. All of the following can be used as an allocation base for calculating factory overhead rates except: 
A. direct labor dollars
B. direct labor hours
C. square footage
D. total overhead costs

 

73. Which two are the most common allocation bases for factory overhead? 
A. Square footage and machine hours
B. Direct labor hours and machine hours
C. Direct labor hours and factory expenses
D. 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.
 

Activity
Cost
Activity Base

Procurement$  370,000Number of purchase orders

Scheduling250,000Number of production orders

Materials handling500,000Number of moves

Product development730,000Number of engineering changes

Production1,500,000Machine hours

 

Number of
Purchase
OrdersNumber
of
Production
Orders
Number
of
Moves
Number of Engineering
Changes

Machine
Hours
Number
of
Units

Disk drives4,0003001,400102,0002,000

Tape drives4,000150800108,0004,000

Wire drives12,0008004,0002510,0002,500

Determine the activity rate for procurement per purchase order. 
A. $43.53
B. $18.50
C. $15.42
D. $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.
 

Activity
Cost
Activity Base

Procurement$  370,000Number of purchase orders

Scheduling250,000Number of production orders

Materials handling500,000Number of moves

Product development730,000Number of engineering changes

Production1,500,000Machine hours

 

Number of
Purchase
OrdersNumber
of
Production
Orders
Number
of
Moves
Number of Engineering
Changes

Machine
Hours
Number
of
Units

Disk drives4,0003001,400102,0002,000

Tape drives4,000150800108,0004,000

Wire drives12,0008004,0002510,0002,500

Determine the activity rate per production order for scheduling. 
A. $200.00
B. $20.00
C. $29.41
D. $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.
 

Activity
Cost
Activity Base

Procurement$  370,000Number of purchase orders

Scheduling250,000Number of production orders

Materials handling500,000Number of moves

Product development730,000Number of engineering changes

Production1,500,000Machine hours

 

Number of
Purchase
OrdersNumber
of
Production
Orders
Number
of
Moves
Number of Engineering
Changes

Machine
Hours
Number
of
Units

Disk drives4,0003001,400102,0002,000

Tape drives4,000150800108,0004,000

Wire drives12,0008004,0002510,0002,500

Determine the activity rate for materials handling per move. 
A. $58.82
B. $50.00
C. $20.83
D. $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.
 

Activity
Cost
Activity Base

Procurement$  370,000Number of purchase orders

Scheduling250,000Number of production orders

Materials handling500,000Number of moves

Product development730,000Number of engineering changes

Production1,500,000Machine hours

 

Number of
Purchase
OrdersNumber
of
Production
Orders
Number
of
Moves
Number of Engineering
Changes

Machine
Hours
Number
of
Units

Disk drives4,0003001,400102,0002,000

Tape drives4,000150800108,0004,000

Wire drives12,0008004,0002510,0002,500

Determine the activity rate for product development per change. 
A. $73,000
B. $8,588
C. $30,417
D. $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.
 

Activity
Cost
Activity Base

Procurement$  370,000Number of purchase orders

Scheduling250,000Number of production orders

Materials handling500,000Number of moves

Product development730,000Number of engineering changes

Production1,500,000Machine hours

 

Number of
Purchase
OrdersNumber
of
Production
Orders
Number
of
Moves
Number of Engineering
Changes

Machine
Hours
Number
of
Units

Disk drives4,0003001,400102,0002,000

Tape drives4,000150800108,0004,000

Wire drives12,0008004,0002510,0002,500

Determine the activity rate for production per machine hour. 
A. $62.50
B. $150.00
C. $75.00
D. $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.
 

Activity
Cost
Activity Base

Procurement$  370,000Number of purchase orders

Scheduling250,000Number of production orders

Materials handling500,000Number of moves

Product development730,000Number of engineering changes

Production1,500,000Machine hours

 

Number of
Purchase
OrdersNumber
of
Production
Orders
Number
of
Moves
Number of Engineering
Changes

Machine
Hours
Number
of
Units

Disk drives4,0003001,400102,0002,000

Tape drives4,000150800108,0004,000

Wire drives12,0008004,0002510,0002,500

Determine the activity-based cost for each disk drive unit. 
A. $92.25
B. $130.69
C. $394.12
D. $279.57

 

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.
 

Activity
Cost
Activity Base

Procurement$  370,000Number of purchase orders

Scheduling250,000Number of production orders

Materials handling500,000Number of moves

Product development730,000Number of engineering changes

Production1,500,000Machine hours

 

Number of
Purchase
OrdersNumber
of
Production
Orders
Number
of
Moves
Number of Engineering
Changes

Machine
Hours
Number
of
Units

Disk drives4,0003001,400102,0002,000

Tape drives4,000150800108,0004,000

Wire drives12,0008004,0002510,0002,500

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

 

 

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