Question : 101. Use the data for Wall Nuts, Inc. to compute : 1256551

 

 

101. Use the data for Wall Nuts, Inc. to compute departmental overhead rates based on machine hours in Department A and machine hours in Department B. A.  $4.50 per MH in Dept A; $4.50 per MH in Dept B.B.  $7.50 per MH in Dept A; $7.50 per MH in Dept. B.C.  $4.50 per MH in Dept A; $7.50 per MH in Dept B.D.  $2.70 per MH in Dept A; $6.00 per MH in Dept B.E.  $0.60 per MH in Dept A; $0.80 per MH in Dept B.

 

 

 

 

 

 

 

 

102. Use the data for Wall Nuts, Inc. to compute the dollar amount of overhead applied to each unit of oak paneling, assuming the company uses departmental overhead rates based on machine hours in Department A and machine hours in Department B.A.  $8.70

B.  $1.40C.  $14.40D.  $26.25E.  $41.00

 

 

103. Use the above data for Wall Nuts, Inc. to compute the total manufacturing cost per unit of oak paneling assuming the company uses departmental overhead rates based on machine hours in Department A and machine hours in Department B.A.  $8.70B.  $18.20C.  $21.95D.  $27.30E.  $36.00

 

 

104. Aurora Corporation produces outdoor security lighting products. All products go through three processes before completion. Use the expected overhead costs and related data shown below to compute departmental overhead rates based on machine hours in Department A1A; based on direct labor hours in Department B2B; and machine hours in Department C3C. 

 

Department A1A

Department B2B

Department C3C

Direct labor hours

90,000 DLH

80,000 DLH

72,000 DLH

Machine hours

54,000 MH

32,000 MH

54,000 MH

Manufacturing overhead costs

$540,000

$160,000

$216,000

A.  Dept. A: $10 per MH; Dept B: $2 per DLH;  Dept C: $4 per MH.B.  Dept. A: $6 per MH; Dept B: $5 per DLH;  Dept C: $3 per MH.C.  Dept. A: $10 per MH; Dept B: $5 per DLH;  Dept C: $4 per MH.D.  Dept. A: $6 per MH; Dept B: $5 per DLH;  Dept C: $4 per MH.E.  Dept. A: $10 per MH; Dept B: $2 per DLH;  Dept C: $3 per MH.

 

 

105. Consider the following activities that take place in a veterinary clinic.(a.)  Cleaning cages.(b.)  Heating and air conditioning the clinic.(c.)  Sending blood work to a lab.(d.)  Dispensing medicine.Which of the following statements is true?A.  Service entities cannot use ABC for overhead allocation.B.  Cleaning cages is a facility level activity. C.  Dispensing medicine is a facility level activity.D.  Heating and air conditioning the clinic is a facility level activity.E.  Sending blood work to a lab is a facility level activity.

 

 

106. Consider the following activities that take place in a medical clinic.(a.)  Cleaning exam rooms.(b.)  Heating and air conditioning the clinic.(c.)  Sending blood work to a lab.(d.)  Dispensing medicine.Which of the following statements is true?A.  Cleaning rooms and heating the clinic are both unit level activities.B.  Sending blood work to the lab is a batch level activity. C.  Sending blood work and dispensing medicine are both batch level activities.D.  Cleaning rooms and dispensing medication are both product or service level activities.E.  Heating the clinic and dispensing medication are both batch level activities.

 

 

107. All of the following are examples of facility sustaining costs except:

A. Costs of cleaning the workplace.

B. Costs of custodial work.

C. Costs of personnel support.D. Costs of sampling product quality.E. Costs of employee recreational facilities.

 

 

 

 

 

 

 

108. A company uses activity-based costing to determine the costs of its three products:  A, B, and C. The budgeted cost and activity for each of the company’s three activity cost pools are shown in the following table: 

 

 

Budgeted Activity

Activity Cost Pool

Budgeted Cost

 

Product A

 

Product B

 

Product C

Activity 1

$70,000

6,000

9,000

20,000

Activity 2

$45,000

7,000

15,000

8,000

Activity 3

$82,000

2,500

1,000

1,625

Which of the following statements is true regarding this company’s activity rates?A.  The activity rate under the activity-based costing system for Activity 2 is $2.00.B.  The activity rate under the activity-based costing system for Activity 2 is $16.00.C.  The activity rate under the activity-based costing system for Activity 2 is $1.50.D.  The activity rate under the activity-based costing system for Activity 2 is $19.50.E.  The activity rate under the activity-based costing system for Activity 2 is $2.81.

 

 

109. A company uses activity-based costing to determine the costs of its three products:  A, B, and C. The budgeted cost and activity for each of the company’s three activity cost pools are shown in the following table: 

 

 

Budgeted Activity

Activity Cost Pool

Budgeted Cost

 

Product A

 

Product B

 

Product C

Activity 1

$70,000

6,000

9,000

20,000

Activity 2

$45,000

7,000

15,000

8,000

Activity 3

$82,000

2,500

1,000

1,625

What are the activity rates for the three activities under activity based costing?

A. (1) $2.00; (2) $3.00; (3) $3.50.

B. (1) $3.50; (2) $1.50; (3) $32,80.

C. (1) $3.50; (2) $3.00; (3) $16.00.

D. (1) $2.00; (2) $1.50; (3) $16.00.

E. (1) $2.00; (2) $1.50; (3) $32.80.

 

 

110. A company uses activity-based costing to determine the costs of its three products:  A, B and C. The budgeted cost and activity for each of the company’s three activity cost pools are shown in the following table: 

 

 

Budgeted Activity

Activity Cost Pool

Budgeted Cost

 

Product A

 

Product B

 

Product C

Activity 1

$70,000

6,000

9,000

20,000

Activity 2

$45,000

7,000

15,000

8,000

Activity 3

$82,000

2,500

1,000

1,625

How much overhead will be assigned to Product B using activity-based costing?A.  $56,500B.  $78,000C.  $62,500D.  $197,000E.  $70,000

 

 

 

 

 

 

 

 

 

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