3-363
3-364
59.
Crazier, Inc., manufactures and sells two products: Product U8 and Product W2. 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 U8
500
6.0
3,000
Product W2
400
5.0
2,000
Total direct labor-
hours
5,000
The direct labor rate is $22.10 per DLH. The direct materials cost per unit for each
product is given below:
Direct Materials Cost per Unit
Product U8
$160.80
Product W2
$185.40
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 U8
Product W2
Total
Labor-related
DLHs
$237,900
3,000
2,000
5,000
Production orders
orders
29,232
600
800
1,400
General factory
MHs
364,364
4,700
4,400
9,100
$631,496
The unit product cost of Product U8 is closest to:
3-366
3-367
60.
Karsten, Inc., manufactures and sells two products: Product M8 and Product I2. 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 M8
700
9.0
6,300
Product I2
300
6.0
1,800
Total direct labor-
hours
8,100
The direct labor rate is $21.20 per DLH. The direct materials cost per unit for each
product is given below:
Direct
Materials
Cost per
Unit
Product
M8
$211.30
Product
I2
$242.90
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 M8
Product I2
Total
Labor-related
DLHs
$299,781
6,300
1,800
8,100
Machine setups
setups
46,514
600
700
1,300
3-368
General factory
MHs
462,981
4,900
4,800
9,700
$809,276
The unit product cost of Product I2 under activity-based costing is closest to:
Labor-related
8,100
DLHs
$37.01
per DLH
Machine setups
1,300
setups
$35.78
per setup
Machine setups, at $35.78 per setup
General factory, $47.73 per MH
3-369
3-370
61.
Recek, Inc., manufactures and sells two products: Product Y5 and Product N7. 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 Y5
1,000
6.0
6,000
Product N7
400
8.0
3,200
Total direct labor-
hours
9,200
The direct labor rate is $22.90 per DLH. The direct materials cost per unit for each
product is given below:
Direct Materials Cost per
Unit
Product
Y5
$252.90
Product
N7
$202.00
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
Y5
Product
N7
Total
Labor-related
DLHs
$321,724
6,000
3,200
9,200
Machine setups
setups
67,221
400
500
900
3-371
General factory
MHs
905,262
4,800
4,500
9,300
$1,294,207
Unit product cost
Which of the following statements concerning the unit product cost of Product N7 is
true?
3-374
62.
Warder, Inc., manufactures and sells two products: Product B9 and Product W2. 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 B9
700
6.0
4,200
Product W2
400
4.0
1,600
Total direct labor-
hours
5,800
The direct labor rate is $20.50 per DLH. The direct materials cost per unit for each
product is given below:
Direct Materials Cost per Unit
Product B9
$105.40
Product W2
$181.30
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 B9
Product W2
Total
Labor-related
DLHs
$109,794
4,200
1,600
5,800
Production orders
orders
43,680
300
400
700
General factory
MHs
741,900
4,900
5,100
10,000
$895,374
Which of the following statements concerning the unit product cost of Product B9 is
3-375
true?
3-376
3-377
3-378
63.
Woofter, Inc., manufactures and sells two products: Product Q7 and Product L4. 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 Q7
1,000
8.0
8,000
Product L4
300
10.0
3,000
Total direct labor-
hours
11,000
The direct labor rate is $25.60 per DLH. The direct materials cost per unit for each
product is given below:
Direct Materials Cost per Unit
Product Q7
$118.50
Product L4
$263.30
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 Q7
Product L4
Total
Labor-related
DLHs
$393,360
8,000
3,000
11,000
Product testing
tests
43,923
600
500
1,100
General factory
MHs
645,348
3,200
3,400
6,600
$1,082,631
3-379
Which of the following statements concerning the unit product cost of Product L4 is true?
3-380
3-381
3-382
64.
Molette, Inc., manufactures and sells two products: Product A8 and Product P0. 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 A8
700
8.0
5,600
Product P0
1,000
11.0
11,000
Total direct labor-
hours
16,600
The direct labor rate is $28.80 per DLH. The direct materials cost per unit for each
product is given below:
Direct Materials Cost per Unit
Product A8
$191.40
Product P0
$171.10
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 A8
Product P0
Total
Labor-related
DLHs
$625,986
5,600
11,000
16,600
Machine setups
setups
52,426
500
600
1,100
General factory
MHs
201,438
4,800
4,500
9,300
$879,850