48. Randolph, Inc., manufactures and sells two products: Product T5 and Product Y7. 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 T5 500 9.0 4,500
Product Y7 500 12.0 6,000
Total direct labor-hours 10,500
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 T5
Product Y7
Total
Labor-related DLHs $510,405 4,500 6,000 10,500
Machine setups setups 37,510 300 200 500
General factory MHs 273,180 3,100 2,900 6,000
$821,095
The total overhead applied to Product Y7 under activity-based costing is closest to:
3-42
3-44
49. Sill, Inc., manufactures and sells two products: Product V9 and Product B1. 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 V9 300 5.0 1,500
Product B1 800 3.0 2,400
Total direct labor-hours 3,900
The direct labor rate is $27.40 per DLH. The direct materials cost per unit for each product is
given below:
Direct Materials Cost per Unit
Product V9 $176.90
Product B1 $262.80
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 V9
Product B1
Total
Labor-related DLHs $94,848 1,500 2,400 3,900
Machine setups setups 36,990 300 200 500
General factory MHs 62,408 3,000 2,800 5,800
$194,246
The unit product cost of Product V9 under activity-based costing is closest to:
50. Dobles Corporation has provided the following data from its activity-based costing
system:
Activity Cost Pools Estimated Overhead Cost Expected Activity
Assembly $228,060 18,000 machine-hours
Processing orders $34,068 1,200 orders
Inspection $125,560 1,720 inspection-hours
The company makes 420 units of product D28K a year, requiring a total of 460 machine-hours,
80 orders, and 10 inspection-hours per year. The product’s direct materials cost is $48.96 per unit
and its direct labor cost is $25.36 per unit.
According to the activity-based costing system, the unit product cost of product D28K is closest
to:
3-48
51. Fullard, Inc., manufactures and sells two products: Product E2 and Product G3. 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 E2 1,000 6.0 6,000
Product G3 800 5.0 4,000
Total direct labor-hours 10,000
The company has 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 E2 Product G3
Total
Labor-related DLHs $269,900 6,000 4,000 10,000
Machine setups setups 74,178 500 400 900
General factory MHs 865,080 4,300 4,600 8,900
$1,209,158
The total overhead applied to Product E2 under activity-based costing is closest to:
52. Nethery, Inc., manufactures and sells two products: Product U5 and Product X2. The
company has 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 U5 Product X2
Total
Labor-related DLHs $36,180 2,400 1,200 3,600
Product testing tests 65,760 400 600 1,000
General factory MHs 133,984 4,000 3,900 7,900
$235,924
The total overhead applied to Product U5 under activity-based costing is closest to:
53. Drucker, Inc., manufactures and sells two products: Product F0 and Product M6. 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 F0 400 7.0 2,800
Product M6 400 6.0 2,400
Total direct labor-hours 5,200
The company has 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 F0 Product M6
Total
Labor-related DLHs $165,828 2,800 2,400 5,200
Product testing tests 86,306 600 500 1,100
General factory MHs 131,900 4,900 5,100 10,000
$384,034
The overhead applied to each unit of Product M6 under activity-based costing is closest to:
54. Kuperman, Inc., manufactures and sells two products: Product V1 and Product D8. The
production of Product V1 is 400 units and of Product D8 is 200 units. The company has 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 V1
Product D8 Total
Labor-related DLHs $180,796 2,800 1,600 4,400
Product testing tests 43,795 300 200 500
General factory MHs 602,286 3,800 3,600 7,400
$826,877
The overhead applied to each unit of Product V1 under activity-based costing is closest to:
