Question : 41. Which of the following does not support managerial decisions involving : 1251764

 

 

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 $300,000 of overhead cost for 2012. Actual overhead costs for the year were $290,000. 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. $7.50 per machine hourB. $6.00 per machine hourC. $7.25 per machine hourD. $5.80 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.

OverheadTotalDirectLabor HoursDLH per Product

AB

Painting Dept.$250,00010,000164

Finishing Dept.72,00012,000416

Totals$322,00022,0002020

==================

Calculate the plantwide factory overhead rate: A. $25.00 per dlhB. $32.20 per dlhC. $14.64 per dlhD. $ 8.05 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.

OverheadTotalDirectLabor HoursDLH per Product

AB

Painting Dept.$250,00010,000164

Finishing Dept.72,00012,000416

Totals$322,00022,0002020

==================

Calculate the overhead rate per unit for Product A: A. $292.80 per unitB. $322.00 per unitC. $146.40 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.

OverheadDirect LaborHours (dlh)Product

AB

Painting Dept.$248,00010,000 dlh16 dlh4 dlh

Finishing Dept.72,00010,000416

Totals$320,00020,000 dlh20 dlh20 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.

OverheadDirect LaborHours (dlh)Product

AB

Painting Dept.$248,00010,000 dlh16 dlh4 dlh

Finishing Dept.72,00010,000416

Totals$320,00020,000 dlh20 dlh20 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.

OverheadDirect LaborHours (dlh)Product

AB

Painting Dept.$248,00010,000 dlh16 dlh4 dlh

Finishing Dept.72,00010,000416

Totals$320,00020,000 dlh20 dlh20 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.

OverheadDirect LaborHours (dlh)Product

AB

Painting Dept.$248,00010,000 dlh16 dlh4 dlh

Finishing Dept.72,00010,000416

Totals$320,00020,000 dlh20 dlh20 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.

OverheadDirect LaborHours (dlh)Product

AB

Painting Dept.$248,00010,000 dlh16 dlh4 dlh

Finishing Dept.72,00010,000416

Totals$320,00020,000 dlh20 dlh20 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

 

 

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