3-283
147. Mcleese, Inc., manufactures and sells two products: Product I6 and Product L1. Data
concerning the expected production of each product and the expected total direct labor-hours
(DLHs) required to produce that output appear below:
Expected Production Direct Labor-Hours Per Unit
Total Direct Labor-Hours
Product I6 800 8.0 6,400
Product L1 700 5.0 3,500
Total direct labor-hours 9,900
The direct labor rate is $26.60 per DLH. The direct materials cost per unit for each product is
given below:
Direct Materials Cost per Unit
Product I6 $255.60
Product L1 $196.80
The company is considering adopting an activity-based costing system with the following activity
cost pools, activity measures, and expected activity:
Estimated Expected Activity
Activity Cost Pools Activity Measures Overhead Cost Product I6
Product L1
Total
Labor-related DLHs $215,622 6,400 3,500 9,900
Machine setups setups 69,938 600 500 1,100
General factory MHs 382,275 3,800 3,700 7,500
$667,835
If the company allocates all of its overhead based on direct labor-hours using its traditional
costing method, the predetermined overhead rate would be closest to:
3-285
148. Mcleese, Inc., manufactures and sells two products: Product I6 and Product L1. Data
concerning the expected production of each product and the expected total direct labor-hours
(DLHs) required to produce that output appear below:
Expected Production Direct Labor-Hours Per Unit
Total Direct Labor-Hours
Product I6 800 8.0 6,400
Product L1 700 5.0 3,500
Total direct labor-hours 9,900
The direct labor rate is $26.60 per DLH. The direct materials cost per unit for each product is
given below:
Direct Materials Cost per Unit
Product I6 $255.60
Product L1 $196.80
The company is considering adopting an activity-based costing system with the following activity
cost pools, activity measures, and expected activity:
Estimated Expected Activity
Activity Cost Pools Activity Measures Overhead Cost Product I6
Product L1
Total
Labor-related DLHs $215,622 6,400 3,500 9,900
Machine setups setups 69,938 600 500 1,100
General factory MHs 382,275 3,800 3,700 7,500
$667,835
If the company allocates all of its overhead based on direct labor-hours using its traditional
costing method, the overhead assigned to each unit of Product L1 would be closest to:
3-287
149. Mcleese, Inc., manufactures and sells two products: Product I6 and Product L1. Data
concerning the expected production of each product and the expected total direct labor-hours
(DLHs) required to produce that output appear below:
Expected Production Direct Labor-Hours Per Unit
Total Direct Labor-Hours
Product I6 800 8.0 6,400
Product L1 700 5.0 3,500
Total direct labor-hours 9,900
The direct labor rate is $26.60 per DLH. The direct materials cost per unit for each product is
given below:
Direct Materials Cost per Unit
Product I6 $255.60
Product L1 $196.80
The company is considering adopting an activity-based costing system with the following activity
cost pools, activity measures, and expected activity:
Estimated Expected Activity
Activity Cost Pools Activity Measures Overhead Cost Product I6
Product L1
Total
Labor-related DLHs $215,622 6,400 3,500 9,900
Machine setups setups 69,938 600 500 1,100
General factory MHs 382,275 3,800 3,700 7,500
$667,835
The activity rate for the Machine Setups activity cost pool under activity-based costing is closest
to:
150. Mcleese, Inc., manufactures and sells two products: Product I6 and Product L1. Data
concerning the expected production of each product and the expected total direct labor-hours
(DLHs) required to produce that output appear below:
Expected Production Direct Labor-Hours Per Unit
Total Direct Labor-Hours
Product I6 800 8.0 6,400
Product L1 700 5.0 3,500
Total direct labor-hours 9,900
The direct labor rate is $26.60 per DLH. The direct materials cost per unit for each product is
given below:
Direct Materials Cost per Unit
Product I6 $255.60
Product L1 $196.80
The company is considering adopting an activity-based costing system with the following activity
cost pools, activity measures, and expected activity:
Estimated Expected Activity
Activity Cost Pools Activity Measures Overhead Cost Product I6
Product L1
Total
Labor-related DLHs $215,622 6,400 3,500 9,900
Machine setups setups 69,938 600 500 1,100
General factory MHs 382,275 3,800 3,700 7,500
$667,835
The overhead applied to each unit of Product L1 under activity-based costing is closest to:
151. Boutet, Inc., manufactures and sells two products: Product G5 and Product U1. Data
concerning the expected production of each product and the expected total direct labor-hours
(DLHs) required to produce that output appear below:
Expected Production Direct Labor-Hours Per Unit
Total Direct Labor-Hours
Product G5 800 5.0 4,000
Product U1 800 3.0 2,400
Total direct labor-hours
6,400
The direct labor rate is $21.10 per DLH. The direct materials cost per unit is $241.40 for Product
G5 and $283.80 for Product U1
.
The company is considering adopting an activity-based costing system with the following activity
cost pools, activity measures, and expected activity:
Expected Activity
Activity Cost Pools Activity Measures Estimated
Overhead Cost Product
G5 Product
U1
Total
Labor-related DLHs $200,640 4,000 2,400 6,400
Production orders orders 14,959 400 300 700
General factory MHs 610,416 4,200 3,900 8,100
$826,015
If the company allocates all of its overhead based on direct labor-hours using its traditional
costing method, the overhead assigned to each unit of Product G5 would be closest to:
152. Boutet, Inc., manufactures and sells two products: Product G5 and Product U1. Data
concerning the expected production of each product and the expected total direct labor-hours
(DLHs) required to produce that output appear below:
Expected Production Direct Labor-Hours Per Unit
Total Direct Labor-Hours
Product G5 800 5.0 4,000
Product U1 800 3.0 2,400
Total direct labor-hours
6,400
The direct labor rate is $21.10 per DLH. The direct materials cost per unit is $241.40 for Product
G5 and $283.80 for Product U1
.
The company is considering adopting an activity-based costing system with the following activity
cost pools, activity measures, and expected activity:
Expected Activity
Activity Cost Pools Activity Measures Estimated
Overhead Cost Product
G5 Product
U1
Total
Labor-related DLHs $200,640 4,000 2,400 6,400
Production orders orders 14,959 400 300 700
General factory MHs 610,416 4,200 3,900 8,100
$826,015
The overhead applied to each unit of Product G5 under activity-based costing is closest to:
3-297
153. Boutet, Inc., manufactures and sells two products: Product G5 and Product U1. Data
concerning the expected production of each product and the expected total direct labor-hours
(DLHs) required to produce that output appear below:
Expected Production Direct Labor-Hours Per Unit
Total Direct Labor-Hours
Product G5 800 5.0 4,000
Product U1 800 3.0 2,400
Total direct labor-hours 6,400
The direct labor rate is $21.10 per DLH. The direct materials cost per unit is $241.40 for Product
G5 and $283.80 for Product U1
.
The company is considering adopting an activity-based costing system with the following activity
cost pools, activity measures, and expected activity:
Estimated Expected Activity
Activity Cost Pools Activity Measures Overhead Cost Product G5
Product U1
Total
Labor-related DLHs $200,640 4,000 2,400 6,400
Production orders orders 14,959 400 300 700
General factory MHs 610,416 4,200 3,900 8,100
$826,015
Which of the following statements concerning the unit product cost of Product U1 is true?
154. Paolello, Inc., manufactures and sells two products: Product P5 and Product N5. Data
concerning the expected production of each product and the expected total direct labor-hours
(DLHs) required to produce that output appear below:
Expected Production Direct Labor-Hours Per Unit
Total Direct Labor-Hours
Product P5 400 8.0 3,200
Product N5 300 11.0 3,300
Total direct labor-hours 6,500
The direct labor rate is $24.60 per DLH. The direct materials cost per unit for each product is
given below:
Direct Materials Cost per Unit
Product P5 $111.60
Product N5 $131.70
The company is considering adopting an activity-based costing system with the following activity
cost pools, activity measures, and expected activity:
Estimated Expected Activity
Activity Cost Pools Activity Measures Overhead Cost Product P5
Product N5
Total
Labor-related DLHs $80,210 3,200 3,300 6,500
Machine setups setups 70,776 400 500 900
General factory MHs 283,104 3,700 3,500 7,200
$434,090
If the company allocates all of its overhead based on direct labor-hours using its traditional
costing method, the overhead assigned to each unit of Product P5 would be closest to: