3-623
3-624
168.
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
200
9.0
1,800
100
6.0
600
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
Machine setups
setups
74,635
600
500
1,100
General factory
MHs
98,091
4,200
3,900
8,100
$251,182
Which of the following statements concerning the unit product cost of Product X7 is true?
3-626
3-627
3-628
169.
Brenneis, Inc., manufactures and sells two products: Product T9 and Product T2. 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 T9
900
6.0
5,400
Product T2
900
8.0
7,200
Total direct labor-
hours
12,600
The direct labor rate is $18.10 per DLH. The direct materials cost per unit is $115.20 for
Product T9 and $221.40 for Product T2
.
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 T9
Product T2
Total
Labor-related
DLHs
$583,002
5,400
7,200
12,600
Production orders
orders
30,204
400
500
900
General factory
MHs
798,950
4,900
4,600
9,500
$1,412,156
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 T9 would be
closest to:
3-629
3-630
170.
Brenneis, Inc., manufactures and sells two products: Product T9 and Product T2. 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 T9
900
6.0
5,400
Product T2
900
8.0
7,200
Total direct labor-
hours
12,600
The direct labor rate is $18.10 per DLH. The direct materials cost per unit is $115.20 for
Product T9 and $221.40 for Product T2
.
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 T9
Product T2
Total
Labor-related
DLHs
$583,002
5,400
7,200
12,600
Production orders
orders
30,204
400
500
900
General factory
MHs
798,950
4,900
4,600
9,500
$1,412,156
The overhead applied to each unit of Product T9 under activity-based costing is closest
to:
3-631
3-632
171.
Brenneis, Inc., manufactures and sells two products: Product T9 and Product T2. 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 T9
900
6.0
5,400
Product T2
900
8.0
7,200
Total direct labor-
hours
12,600
The direct labor rate is $18.10 per DLH. The direct materials cost per unit is $115.20 for
Product T9 and $221.40 for Product T2
.
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 T9
Product T2
Total
Labor-related
DLHs
$583,002
5,400
7,200
12,600
Production orders
orders
30,204
400
500
900
General factory
MHs
798,950
4,900
4,600
9,500
$1,412,156
Which of the following statements concerning the unit product cost of Product T9 is true?
3-635
3-636
172.
Betenbaugh, Inc., manufactures and sells two products: Product E4 and Product L8. 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
100
7.0
700
400
6.0
2,400
3,100
The direct labor rate is $29.00 per DLH. The direct materials cost per unit is $223.90 for
Product E4 and $122.30 for Product L8
.
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 E4
Product L8
Total
Labor-related
DLHs
$73,005
700
2,400
3,100
Production orders
orders
42,924
500
700
1,200
General factory
MHs
709,050
4,300
4,400
8,700
$824,979
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:
3-637
3-638
173.
Betenbaugh, Inc., manufactures and sells two products: Product E4 and Product L8. 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
100
7.0
700
400
6.0
2,400
3,100
The direct labor rate is $29.00 per DLH. The direct materials cost per unit is $223.90 for
Product E4 and $122.30 for Product L8
.
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 E4
Product L8
Total
Labor-related
DLHs
$73,005
700
2,400
3,100
Production orders
orders
42,924
500
700
1,200
General factory
MHs
709,050
4,300
4,400
8,700
$824,979
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 E4 would be
closest to:
3-639
3-640
174.
Betenbaugh, Inc., manufactures and sells two products: Product E4 and Product L8. 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
100
7.0
700
400
6.0
2,400
3,100
The direct labor rate is $29.00 per DLH. The direct materials cost per unit is $223.90 for
Product E4 and $122.30 for Product L8
.
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 E4
Product L8
Total
Labor-related
DLHs
$73,005
700
2,400
3,100
Production orders
orders
42,924
500
700
1,200
General factory
MHs
709,050
4,300
4,400
8,700
$824,979
The unit product cost of Product L8 under the company’s traditional costing method in
which all overhead is allocated on the basis of direct labor-hours is closest to:
3-641
3-642
175.
Betenbaugh, Inc., manufactures and sells two products: Product E4 and Product L8. 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
100
7.0
700
400
6.0
2,400
3,100
The direct labor rate is $29.00 per DLH. The direct materials cost per unit is $223.90 for
Product E4 and $122.30 for Product L8
.
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 E4
Product L8
Total
Labor-related
DLHs
$73,005
700
2,400
3,100
Production orders
orders
42,924
500
700
1,200
General factory
MHs
709,050
4,300
4,400
8,700
$824,979
The activity rate for the General Factory activity cost pool under activity-based costing is
closest to: