Question : 91. Kamper Company sells two products Big Z and Little : 1256550

 

 

91. Kamper Company sells two products Big Z and Little Z. Current direct material and direct labor costs are detailed below. Next year, the company wishes to use a plantwide overhead rate with direct labor hours as its allocation base. Next year’s overhead is estimated to be $475,000. The direct labor and direct materials costs are estimated to be consistent with the current year. Direct labor costs $20 per hour and the company expects to manufacture 32,000 units of Big Z and 9,000 units of Little Z next year.  

 

Direct

Material

per Unit

Direct

Labor Dollars

per Unit

Big Z

$6

$17

Little Z

$12

$8

What are total estimated direct labor hours for this next year?A.  30,800 total DLH.B.  616,000 total DLH.C.  300,000 total DLH.D.  1,025,000 total DLH.E.  916,000 total DLH.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

92. Crinkle Cut Clothes Company manufactures two products CC1 and CC2. Current direct material and direct labor costs are detailed below. Next year the company wishes to use a plantwide overhead rate with direct labor hours as its allocation base. Next year’s overhead is estimated to be $338,250. The direct labor and direct materials costs are estimated to be consistent with the current year. Direct labor costs $28 per hour and the company expects to manufacture 22,000 units of CC1 and 91,000 units of CC2 next year.  

 

Direct

Material

per Unit

Direct

Labor Dollars

per Unit

CC1

$37.10

$22.40

CC2

$25.20

$15.40

Compute the plantwide overhead rate for next year.A.  $28.00 per DLH.B.  $37.80 per DLH.C.  $1.35 per DLH.D.  $5.00 per DLH.E.  $.20 per DLH.

 

Reference: 17_02

Aztec Industries produces bread which goes through two operations, mixing and baking, before it is ready to be packaged. Next year’s expected costs and activities are shown below. 

 

Mixing

Baking

Direct labor hours

400,000 DLH

80,000 DLH

Machine hours

800,000 MH

800,000 MH

Overhead costs

$600,000

$400,000

 

 

 

 

 

 

93. Compute Aztec’s departmental overhead rate for the mixing department based on direct labor hours.A.  $1.50 per DLH.B.  $5.00 per DLH.C.  $0.75 per DLH.D.  $0.50 per DLH.E.  $2.08 per DLH.

 

 

94. Compute Aztec’s departmental overhead rate for the mixing department based on machine hours.A.  $1.50 per MH.B.  $5.00 per MH.C.  $0.75 per MH.D.  $0.50 per MH.E.  $2.08 per MH.

 

 

 

 

 

 

 

95. Compute Aztec’s departmental overhead rate for the baking department based on direct labor hours.A.  $1.50 per DLHB.  $5.00 per DLHC.  $0.75 per DLHD.  $0.50 per DLHE.  $2.08 per DLH

 

 

96. Compute Aztec’s departmental overhead rate for the baking department based on machine hours.A.  $1.50 per MHB.  $5.00 per MHC.  $0.75 per MHD.  $0.50 per MHE.  $2.08 per MH

 

Reference: 17_03

Heritage Industries produces miniature models of farm equipment. These collectibles are in great demand. It takes two operations, molding and finishing, to complete the miniatures. Next year’s expected activities are shown in the following table: 

 

Molding

Finishing

Direct labor hours

65,000 DLH

162,500 DLH

Machine hours

97,500 MH

81,250 MH

 

 

97. Heritage Industries uses departmental overhead rates and is planning on a $3 per direct labor hour overhead rate for the molding department. Compute the estimated manufacturing overhead cost for the molding department given the information shown in the table.A.  $487,500B.  $195,000C.  $292,500D.  $243,750E.  $692,500

 

 

98. Heritage Industries uses departmental overhead rates and is planning on a $1.60 per direct labor hour overhead rate for the finishing department. Compute the estimated manufacturing overhead cost for the finishing department given the information shown in the table.A.  $104,000B.  $156,000C.  $260,000D.  $130,000E.  $286,000

 

 

 

 

 

 

 

 

99. Heritage Industries uses departmental overhead rates and is planning on a $2 per machine hour overhead rate for the molding department. Compute the estimated manufacturing overhead cost for the molding department given the information shown in the table.A.  $195,000B.  $162,500C.  $130,000D.  $325,000E.  $357,500

 

 

100. Heritage Industries uses departmental overhead rates and is planning on a $3.20 per machine hour overhead rate for the finishing department. Compute the estimated manufacturing overhead cost for the finishing department given the information shown in the table.A.  $208,000B.  $312,000C.  $520,000D.  $260,000E.  $572,000

 

 

Reference: 17_04

Wall Nuts, Inc. produces paneling that requires two processes, A and B, to complete. Oak is the best-selling of all the many types of paneling produced. Information related to the 40,000 units of oak paneling produced annually is shown in the following table: 

Direct materials

$380,000

Direct labor

 

Department A (6,000 DLH x $25 per DLH)

$150,000

Department B (35,125 DLH x $16 per DLH)

$562,000

Machine Hours

 

Department A

24,000 MH

Department B

32,000 MH

Wall Nuts’ total expected overhead costs and related overhead data are shown below. 

 

Department A

Department B

Direct labor hours

67,000 DLH

170,000 DLH

Machine hours

100,000 MH

80,000 MH

Manufacturing overhead costs

$450,000

$600,000