Question :
41. Which of the following does not support managerial decisions involving : 1239677
41. Which of the following does not support managerial decisions involving accurate product costing? A. product constraintsB. emphasis of a product lineC. product mixD. product price
42. Pinacle Corp. budgeted $350,000 of overhead cost for 2012. Actual overhead costs for the year were $325,000. Pinacle’s plantwide allocation base, machine hours, was budgeted at 50,000 hours. Actual machine hours were 40,000. A total of 100,000 units was budgeted to be produced and 98,000 units were actually produced. Pinacle’s plantwide factory overhead rate for 2012 is: A. $8.13 per machine hourB. $7.00 per machine hourC. $6.50 per machine hourD. $8.75 per machine hour
43. Everest Co. uses a plantwide factory overhead rate based on direct labor hours. Overhead costs would be overcharged to which of the following departments? A. A labor-intensive departmentB. A capital-intensive departmentC. A materials-intensive departmentD. All of the above
44. Adirondak Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead.
Overhead
TotalDirectLabor Hours
DLH per Product
A
B
Painting Dept.
$250,000
10,000
16
4
Finishing Dept.
75,000
12,000
4
16
Totals
$325,000
22,000
20
20
========
======
==
==
Calculate the plantwide factory overhead rate: A. $25.00 per dlhB. $0.07 per dlhC. $14.77 per dlhD. $ 6.25 per dlh
45. Adirondak Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead.
Overhead
TotalDirectLabor Hours
DLH per Product
A
B
Painting Dept.
$250,000
10,000
16
4
Finishing Dept.
75,000
12,000
4
16
Totals
$325,000
22,000
20
20
========
======
==
==
Calculate the overhead rate per unit for Product A in painting department: A. $236.32 per unitB. $325.00 per unitC. $147.70 per unitD. $161.00 per unit
46. Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours.
Overhead
Direct LaborHours (dlh)
Product
A
B
Painting Dept.
$248,000
10,000 dlh
16 dlh
4 dlh
Finishing Dept.
72,000
10,000
4
16
Totals
$320,000
20,000 dlh
20 dlh
20 dlh
========
==========
======
======
Using a single plantwide rate, determine the overhead rate per unit for Product B: A. $496.00B. $144.00C. $640.00D. $320.00
47. Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours.
Overhead
Direct LaborHours (dlh)
Product
A
B
Painting Dept.
$248,000
10,000 dlh
16 dlh
4 dlh
Finishing Dept.
72,000
10,000
4
16
Totals
$320,000
20,000 dlh
20 dlh
20 dlh
========
==========
======
======
Determine the overhead rate in the Painting Department for each unit of Product B if the company uses a multiple department rate system. A. $12.40 per dlhB. $24.80 per dlhC. $7.20 per dlhD. $16.00 per dlh
48. Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours.
Overhead
Direct LaborHours (dlh)
Product
A
B
Painting Dept.
$248,000
10,000 dlh
16 dlh
4 dlh
Finishing Dept.
72,000
10,000
4
16
Totals
$320,000
20,000 dlh
20 dlh
20 dlh
========
==========
======
======
Determine the overhead rate in the Finishing Department for each unit of Product A if the company uses a multiple department rate system. A. $24.80 per dlhB. $12.40 per dlhC. $16.00 per dlhD. $7.20 per dlh
49. Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours.
Overhead
Direct LaborHours (dlh)
Product
A
B
Painting Dept.
$248,000
10,000 dlh
16 dlh
4 dlh
Finishing Dept.
72,000
10,000
4
16
Totals
$320,000
20,000 dlh
20 dlh
20 dlh
========
==========
======
======
Determine the overhead from both production departments allocated to each unit of Product A if the company uses a multiple department rate system. A. $396.80 per unitB. $425.60 per unitC. $320.00 per unitD. $214.40 per unit
50. Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours.
Overhead
Direct LaborHours (dlh)
Product
A
B
Painting Dept.
$248,000
10,000 dlh
16 dlh
4 dlh
Finishing Dept.
72,000
10,000
4
16
Totals
$320,000
20,000 dlh
20 dlh
20 dlh
========
==========
======
======
Determine the overhead from both production departments allocated to each unit of Product B if the company uses a multiple department rate system. A. $425.60 per unitB. $115.20 per unitC. $214.40 per unitD. $320.00 per unit
