3-643
3-644
176.
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
Total Direct Labor-
Hours
Product E4
100
700
Product L8
400
2,400
Total direct labor-
hours
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 overhead applied to each unit of Product L8 under activity-based costing is closest
to:
3-645
3-646
177.
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
Total Direct Labor-
Hours
Product E4
100
700
Product L8
400
2,400
Total direct labor-
hours
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 E4 under activity-based costing is closest to:
3-647
3-648
3-649
178.
Swimm Company allocates materials handling cost to the company’s two products using
the below data:
Modular Homes
Prefab Barns
Total expected units produced
3,000
4,000
Total expected material moves
400
100
Expected direct labor-hours per unit
700
200
The total materials handling cost for the year is expected to be $72,065.
If the materials handling cost is allocated on the basis of direct labor-hours, the total
materials handling cost allocated to the prefab barns is closest to:
179.
Swimm Company allocates materials handling cost to the company’s two products using
the below data:
Modular Homes
Prefab Barns
Total expected units produced
3,000
4,000
Total expected material moves
400
100
Expected direct labor-hours per unit
700
200
The total materials handling cost for the year is expected to be $72,065.
If the materials handling cost is allocated on the basis of material moves, the total
materials handling cost allocated to the modular homes is closest to:
3-651
3-652
180.
Sampaga, Inc., manufactures and sells two products: Product S6 and Product U3. 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
Total Direct Labor-
Hours
Product S6
200
1,600
Product U3
900
8,100
Total direct labor-
hours
9,700
The direct labor rate is $20.90 per DLH. The direct materials cost per unit is $145.30 for
Product S6 and $221.50 for Product U3
.
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 S6
Product U3
Total
Labor-related
DLHs
$251,230
1,600
8,100
9,700
Production orders
orders
98,150
400
600
1,000
General factory
MHs
171,044
3,200
2,900
6,100
$520,424
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 U3 would be
closest to:
3-653
3-654
181.
Sampaga, Inc., manufactures and sells two products: Product S6 and Product U3. 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
Total Direct Labor-
Hours
Product S6
200
1,600
Product U3
900
8,100
Total direct labor-
hours
9,700
The direct labor rate is $20.90 per DLH. The direct materials cost per unit is $145.30 for
Product S6 and $221.50 for Product U3
.
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 S6
Product U3
Total
Labor-related
DLHs
$251,230
1,600
8,100
9,700
Production orders
orders
98,150
400
600
1,000
General factory
MHs
171,044
3,200
2,900
6,100
$520,424
The overhead applied to each unit of Product U3 under activity-based costing is closest
to:
3-655
3-656
3-657
182.
Sampaga, Inc., manufactures and sells two products: Product S6 and Product U3. 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
Total Direct Labor-
Hours
Product S6
200
1,600
Product U3
900
8,100
Total direct labor-
hours
9,700
The direct labor rate is $20.90 per DLH. The direct materials cost per unit is $145.30 for
Product S6 and $221.50 for Product U3
.
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
S6
Product
U3
Total
Labor-
related
DLHs
$251,230
1,600
8,100
9,700
Production
orders
orders
98,150
400
600
1,000
General
factory
MHs
171,044
3,200
2,900
6,100
$520,424
Which of the following statements concerning the unit product cost of Product U3 is
true?
3-658
3-660
3-661
183.
Mellencamp, Inc., manufactures and sells two products: Product A3 and Product Y6. 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
Total Direct Labor-
Hours
Product A3
900
7,200
Product Y6
800
8,000
Total direct labor-
hours
15,200
The direct labor rate is $24.20 per DLH. The direct materials cost per unit is $146.60 for
Product A3 and $256.20 for Product Y6
.
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 A3
Product Y6
Total
Labor-related
DLHs
$670,624
7,200
8,000
15,200
Production orders
orders
41,545
400
300
700
General factory
MHs
281,281
3,800
3,900
7,700
$993,450
The unit product cost of Product A3 under the company’s traditional costing method in
which all overhead is allocated on the basis of direct labor-hours is closest to:
3-662