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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 Direct Labor-Hours Per Unit
Total Direct Labor-Hours
Product E4 100 7.0 700
Product L8 400 6.0 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:
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:
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 Direct Labor-Hours Per Unit
Total Direct Labor-Hours
Product S6 200 8.0 1,600
Product U3 900 9.0 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:
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 Direct Labor-Hours Per Unit
Total Direct Labor-Hours
Product S6 200 8.0 1,600
Product U3 900 9.0 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:
3-373
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 Direct Labor-Hours Per Unit
Total Direct Labor-Hours
Product S6 200 8.0 1,600
Product U3 900 9.0 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?
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 Direct Labor-Hours Per Unit
Total Direct Labor-Hours
Product A3 900 8.0 7,200
Product Y6 800 10.0 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:
184. 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 Direct Labor-Hours Per Unit
Total Direct Labor-Hours
Product A3 900 8.0 7,200
Product Y6 800 10.0 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 Y6 under the company's traditional costing method in which all
overhead is allocated on the basis of direct labor-hours is closest to:
