3-603
to:
3-604
161.
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 J9
Product S5
Machine setups
General factory
3-606
3-607
3-608
3-609
162.
Machuga, Inc., manufactures and sells two products: Product C1 and Product M2. 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 C1
800
9.0
7,200
Product M2
700
11.0
7,700
Total direct labor-
hours
14,900
The direct labor rate is $18.70 per DLH. The direct materials cost per unit is $297.00 for
Product C1 and $246.20 for Product M2
.
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 C1
Product M2
Total
Labor-related
DLHs
$558,452
7,200
7,700
14,900
Production orders
orders
75,240
500
600
1,100
General factory
MHs
886,410
4,400
4,600
9,000
$1,520,102
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 C1 would be
closest to:
3-610
3-611
163.
Machuga, Inc., manufactures and sells two products: Product C1 and Product M2. 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 C1
800
9.0
7,200
Product M2
700
11.0
7,700
Total direct labor-
hours
14,900
The direct labor rate is $18.70 per DLH. The direct materials cost per unit is $297.00 for
Product C1 and $246.20 for Product M2
.
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 C1
Product M2
Total
Labor-related
DLHs
$558,452
7,200
7,700
14,900
Production orders
orders
75,240
500
600
1,100
General factory
MHs
886,410
4,400
4,600
9,000
$1,520,102
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 M2 would be
closest to:
3-612
3-613
164.
Machuga, Inc., manufactures and sells two products: Product C1 and Product M2. 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 C1
800
9.0
7,200
Product M2
700
11.0
7,700
Total direct labor-
hours
14,900
The direct labor rate is $18.70 per DLH. The direct materials cost per unit is $297.00 for
Product C1 and $246.20 for Product M2
.
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 C1
Product M2
Total
Labor-related
DLHs
$558,452
7,200
7,700
14,900
Production orders
orders
75,240
500
600
1,100
General factory
MHs
886,410
4,400
4,600
9,000
$1,520,102
The overhead applied to each unit of Product C1 under activity-based costing is closest
to:
3-615
3-616
165.
Machuga, Inc., manufactures and sells two products: Product C1 and Product M2. 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 C1
800
9.0
7,200
Product M2
700
11.0
7,700
Total direct labor-hours
14,900
The direct labor rate is $18.70 per DLH. The direct materials cost per unit is $297.00 for
Product C1 and $246.20 for Product M2.
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
C1
Product
M2
Total
Labor-related
DLHs
$558,452
7,200
7,700
14,900
Production
orders
orders
75,240
500
600
1,100
General factory
MHs
886,410
4,400
4,600
9,000
$1,520,102
The overhead applied to each unit of Product M2 under activity-based costing is closest
to:
3-617
3-619
166.
Penegar, Inc., manufactures and sells two products: Product X7 and Product S4. 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 X7
200
9.0
1,800
Product S4
100
6.0
600
Total direct labor-
hours
2,400
The direct labor rate is $21.60 per DLH. The direct materials cost per unit for each
product is given below:
Direct Materials Cost per Unit
Product X7
$128.70
Product S4
$174.10
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 X7
Product S4
Total
Labor-related
DLHs
$78,456
1,800
600
2,400
Machine setups
setups
74,635
600
500
1,100
General factory
MHs
98,091
4,200
3,900
8,100
$251,182
If the company allocates all of its overhead based on direct labor-hours using its
3-620
traditional costing method, the overhead assigned to each unit of Product S4 would be
closest to:
3-621
167.
Penegar, Inc., manufactures and sells two products: Product X7 and Product S4. 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 X7
200
9.0
1,800
Product S4
100
6.0
600
Total direct labor-
hours
2,400
The direct labor rate is $21.60 per DLH. The direct materials cost per unit for each
product is given below:
Direct Materials Cost per Unit
Product X7
$128.70
Product S4
$174.10
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
X7
Product
S4
Total
Labor-
related
DLHs
$78,456
1,800
600
2,400
3-622
Machine
setups
setups
74,635
600
500
1,100
General
factory
MHs
98,091
4,200
3,900
8,100
$251,182
The overhead applied to each unit of Product S4 under activity-based costing is closest
to: