68. Trisdale, Inc., manufactures and sells two products: Product V5 and Product X3. 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 V5 900 5.0 4,500
Product X3 1,000 3.0 3,000
Total direct labor-hours 7,500
The company’s total manufacturing overhead is $372,695. If the company allocates all of its
overhead based on direct labor-hours, the predetermined overhead rate would be closest to:
3-102
69. Sow, Inc., manufactures and sells two products: Product I4 and Product P3. 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 I4 700 8.0 5,600
Product P3 400 9.0 3,600
Total direct labor-hours 9,200
The direct labor rate is $24.70 per DLH. The direct materials cost per unit for each product is
given below:
Direct Materials Cost per Unit
Product I4 $136.60
Product P3 $145.70
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 I4
Product P3 Total
Labor-related DLHs $210,404 5,600 3,600 9,200
Product testing tests 59,983 300 400 700
General factory MHs 613,015 3,300 3,200 6,500
$883,402
The unit product cost of Product P3 under the company’s traditional costing method in which all
overhead is allocated on the basis of direct labor-hours is closest to:
70. Molinas, Inc., manufactures and sells two products: Product G1 and Product S8. 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 G1 800 8.0 6,400
Product S8 1,000 5.0 5,000
Total direct labor-hours 11,400
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 G1
Product S8
Total
Labor-related DLHs $239,172 6,400 5,000 11,400
Product testing tests 55,524 400 300 700
General factory MHs 685,580 3,400 3,600 7,000
$980,276
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:
71. Finken, Inc., manufactures and sells two products: Product H9 and Product L0. 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 H9 400 5.0 2,000
Product L0 800 6.0 4,800
Total direct labor-hours 6,800
The direct labor rate is $16.10 per DLH. The direct materials cost per unit is $256.40 for Product
H9 and $125.00 for Product L0. The estimated total manufacturing overhead is $441,772.
The unit product cost of Product L0 under the company’s traditional costing method in which all
overhead is allocated on the basis of direct labor-hours is closest to:
3-108
72. Whiteley, Inc., manufactures and sells two products: Product M5 and Product P4. 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 M5 200 9.0 1,800
Product P4 100 12.0 1,200
Total direct labor-hours 3,000
The direct labor rate is $27.50 per DLH. The direct materials cost per unit for each product is
given below:
Direct Materials Cost per Unit
Product M5 $185.20
Product P4 $244.20
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 M5
Product P4 Total
Labor-related DLHs $117,330 1,800 1,200 3,000
Product testing tests 9,499 400 300 700
General factory MHs 641,606 5,000 4,800 9,800
$768,435
The unit product cost of Product P4 under activity–based costing is closest to:
73. Lamon, Inc., manufactures and sells two products: Product J9 and Product R6. 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 J9 300 9.0 2,700
Product R6 900 7.0 6,300
Total direct labor-hours 9,000
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 J9
Product R6 Total
Labor-related DLHs $302,490 2,700 6,300 9,000
Machine setups setups 60,088 400 300 700
General factory MHs 95,282 3,700 3,400 7,100
$457,860
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 J9 would be closest to:
74. Diemer, Inc., manufactures and sells two products: Product N4 and Product R7. 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 N4 200 9.0 1,800
Product R7 900 8.0 7,200
Total direct labor-hours 9,000
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 N4
Product R7
Total
Labor-related DLHs $357,120 1,800 7,200 9,000
Production orders orders 20,797 400 300 700
General factory MHs 358,425 3,800 3,700 7,500
$736,342
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:
3-115
75. Abbe, Inc., manufactures and sells two products: Product O9 and Product A3. 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 O9 1,000 8.0 8,000
Product A3 700 5.0 3,500
Total direct labor-hours 11,500
The direct labor rate is $24.40 per DLH. The direct materials cost per unit for each product is
given below:
Direct Materials Cost per Unit
Product O9 $192.40
Product A3 $246.60
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 O9
Product A3
Total
Labor-related DLHs $534,980 8,000 3,500 11,500
Machine setups setups 17,649 400 500 900
General factory MHs 221,715 3,100 3,400 6,500
$774,344
The unit product cost of Product O9 under the company’s traditional costing method in which all
overhead is allocated on the basis of direct labor-hours is closest to:
76. Sylvest, Inc., manufactures and sells two products: Product O3 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 O3 1,000 9.0 9,000
Product L8 1,000 6.0 6,000
Total direct labor-hours 15,000
The company’s expected total manufacturing overhead is $913,376.
If the company allocates all of its overhead based on direct labor-hours, the overhead assigned
to each unit of Product O3 would be closest to:
77. Cassano, Inc., manufactures and sells two products: Product C8 and Product E6. 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 C8 800 6.0 4,800
Product E6 600 9.0 5,400
Total direct labor-hours 10,200
The direct labor rate is $19.80 per DLH. The direct materials cost per unit is $145.10 for Product
C8 and $181.00 for Product E6. The estimated total manufacturing overhead is $671,598.
The unit product cost of Product C8 under the company’s traditional costing method in which all
overhead is allocated on the basis of direct labor-hours is closest to:
78. Boahn, Inc., manufactures and sells two products: Product B6 and Product W8. 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 B6 200 7.0 1,400
Product W8 100 9.0 900
Total direct labor-hours 2,300
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 B6
Product W8
Total
Labor-related DLHs $91,149 1,400 900 2,300
Machine setups setups 54,549 500 400 900
General factory MHs 329,550 3,200 3,300 6,500
$475,248
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 W8 would be closest to: