3-583
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?
3-584
3-586
3-587
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
3-588
closest to:
3-589
155.
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
The overhead applied to each unit of Product P5 under activity-based costing is closest
3-590
to:
3-591
3-592
156.
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
Which of the following statements concerning the unit product cost of Product N5 is
3-593
true?
3-594
3-595
3-596
157.
Accurso, Inc., manufactures and sells two products: Product J9 and Product S5. 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 J9
400
6.0
2,400
Product S5
600
3.0
1,800
Total direct labor-
hours
4,200
The direct labor rate is $22.50 per DLH. The direct materials cost per unit for each
product is given below:
Direct Materials Cost
per Unit
Product J9
$111.40
Product S5
$275.20
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 J9
Product S5
Total
Labor-related
DLHs
$121,548
2,400
1,800
4,200
Machine setups
setups
37,170
600
800
1,400
General factory
MHs
385,848
4,700
4,500
9,200
$544,566
3-597
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:
158.
Accurso, Inc., manufactures and sells two products: Product J9 and Product S5. 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 J9
400
6.0
2,400
Product S5
600
3.0
1,800
Product S5
3-599
traditional costing method, the overhead assigned to each unit of Product J9 would be
closest to:
3-600
159.
Accurso, Inc., manufactures and sells two products: Product J9 and Product S5. 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 J9
400
6.0
2,400
Product S5
600
3.0
1,800
Total direct labor-
hours
4,200
The direct labor rate is $22.50 per DLH. The direct materials cost per unit for each
product is given below:
Direct Materials Cost
per Unit
Product J9
$111.40
Product S5
$275.20
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 J9
Product S5
Total
Labor-related
DLHs
$121,548
2,400
1,800
4,200
Machine setups
setups
37,170
600
800
1,400
General factory
MHs
385,848
4,700
4,500
9,200
$544,566
The activity rate for the Machine Setups activity cost pool under activity-based costing is
3-601
closest to:
3-602
160.
Accurso, Inc., manufactures and sells two products: Product J9 and Product S5. 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 J9
400
6.0
2,400
Product S5
600
3.0
1,800
Total direct labor-
hours
4,200
The direct labor rate is $22.50 per DLH. The direct materials cost per unit for each
product is given below:
Direct Materials Cost
per Unit
Product J9
$111.40
Product S5
$275.20
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 J9
Product S5
Total
Labor-related
DLHs
$121,548
2,400
1,800
4,200
Machine setups
setups
37,170
600
800
1,400
General factory
MHs
385,848
4,700
4,500
9,200
$544,566
The overhead applied to each unit of Product J9 under activity-based costing is closest