Question

3 SMavery, Inc., manufactures and sells two products: Product E1 and Product A7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Direct Labor- Hours Per Expected Production 800 300 Unit Product Ei Product A7 Total Direct Labor- Hours 4,000 600 4,600 5.0 2.0 Total direct labor-hours The direct labor rate is $18.40 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $127.10 $299.80 Product El Product A7 The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Labor-related Machine setups Order size Activity Measures DLHS setups MHS Estimated Expected Activity Overhead Cost Product El Product A7 Total $100,096 4,000 600 4,600 47,208 300 400 700 738,368 4,100 4,200 8,300 $885,672 < Prev 43 of 50 Next >

Answer 1

A B C D 1 1) Estimated Overhead cost $ 100,096 $ 47,208 $ 738,368 Expected Activity activity rate 4,600 $ 21.76 700 $ 67.44 8,300 $ 88.96 Amount $ $ $ $ 13,056 26,976 373,632 413,664 2 Activity cost pool 3 Labor-related 4 Machine setups 5 Order size 6 7 8 Overapplied to A7 9 Labor-related 10 Machine setups 11 Order size 12 Total overhead applied 13 14 Hence, the correct option is $413,664. 15 16 2) 17 Total estimated overhead cost 18 Total direct labor hours 19 Overhead rate 20 21 Direct labor hours used by Prouduct W8 22 Overhead rate 23 Total overhead allocated 24 Expected production 25 Overhead assigned to each unit of product W8 26 27 Hence, the correct option is $970.92 per unit. $ 1,283,805 11,900 107.88 $ 900 107.88 $ $ 97,092 100 970.92

A B C D 1 1) Estimated Overhead cost 100096 47208 738368 Expected activity 4600 Activity rate =+B3/C3 =+B4/C4 =+B5/C5 700 8300 Amount 1=600*D3 =400*D4 -4200*D5 =+B9+B10+B11 2 Activity cost pool 3 Labor-related 4 Machine setups 5 Order size 6 7 8 Overapplied to A7 9 Labor-related 10 Machine setups 11 Order size 12 Total overhead applied 13 14 Hence, the correct option is $413,664. 15 16 2) 17 Total estimated overhead cost 18 Total direct labor hours 19 Overhead rate 20 21 Direct labor hours used by Prouduct W8 22 Overhead rate 23 Total overhead allocated 24 Expected production 25 Overhead assigned to each unit of product W8 26 27 Hence, the correct option is $970.92 per unit. 1283805 11900 =+B17/18 900 107.88 =+B21*B22 100 =+B23/B24