Question : 81. Phelan Systems Corporation estimating activity costs associated with producing disk : 1233949

 

81. 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 tape drive unit. A. $192.00B. $193.70C. $285.80D. $387.40

82. 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 wire drive unit. A. $187.36B. $192.00C. $749.44D. $468.40

83. Which of the following is not a cost pool used with the activity-based costing method? A. Direct Labor HoursB. Production SetupsC. Engineering D. All are used.

84. Activity rates are determined by A. dividing the actual cost for each activity pool by the actual activity base for that pool.B. dividing the cost budgeted for each activity pool by the estimated activity base for that pool.C. dividing the actual cost for each activity pool by the estimated activity base for that pool.D. dividing the cost budgeted for each activity pool by the actual activity base in that pool.

85. Nite Lite Company is changing to an activity-based costing method. They have determined that they will use three cost pools. They are set-ups, inspections, and assembly. Which of the following would be used as the activity base for assembly? A. direct labor hoursB. inventory costC. inspectionsD. number of units to be produced

86. Using the following information prepared by the Nite Lite Company, determine the activity rate for set-ups. 

Activity Pool

Activity Base

Budgeted Amount

Set-ups

10,000

$60,000

Inspections

24,000

$120,000

Assembly (DLH)

80,000

$400,000

 

 

 

 A. $60.00B. $6.00C. $.06D. $.60

87. The Nite Lite Company manufactures small lamps and desk lamps. The following shows the activities per product: 

 

Set-ups

Inspections

Assembly (DLH)

Small Lamps – 4,000 units

1

4

1

Desk Lamps – 8,000 units

2

1

3

 

 

 

 

 

 

 

 

Using the following information prepared by the Nite Lite Company, determine the factory overhead rate to be charged to each unit of small lamps. 

Activity Pool

Activity Base

Budgeted Amount

Set-ups

20,000

$60,000

Inspections

24,000

$120,000

Assembly (DLH)

28,000

$420,000

 

 

 

 A. $38.00B. $35.00C. $10.00D. $20.00

88. The Nite Lite Company manufactures small lamps and desk lamps. The following shows the activities per product: 

 

Set-ups

Inspections

Assembly (DLH)

Small Lamps – 4,000 units

4,000

16,000

4,000

Desk Lamps – 8,000 units

16,000

8,000

24,000

 

 

 

 

 

 

 

 

Using the following information prepared by the Nite Lite Company, determine the total factory overhead rate to be charged to desk lamps. 

Activity Pool

Activity Base

Budgeted Amount

Set-ups

24,000

$60,000

Inspections

24,000

$120,000

Assembly (DLH)

28,000

$280,000

 

 

 

 A. $380,000B. $320,000C. $140,000D. cannot be determined

89. The Nite Lite Company manufactures small lamps and desk lamps. The following shows the activities per product: 

 

Set-ups

Inspections

Assembly (DLH)

Small Lamps – 4,000 units

4,000

16,000

4,000

Desk Lamps – 8,000 units

16,000

8,000

24,000

 

 

 

 

 

 

 

 

Using the following information prepared by the Nite Lite Company, determine the total factory overhead rate to be charged to small lamps. 

Activity Pool

Activity Base

Budgeted Amount

Set-ups

20,000

$60,000

Inspections

24,000

$120,000

Assembly (DLH)

28,000

$420,000

 

 

 

 A. $380,000B. $240,000C. $152,000D. cannot be determined

90. If selling and administrative expenses are allocated to different products, they should be reported as A. product costB. contra sales accountC. period costD. cost of goods sold

 

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