3-443
93.
Kamerling, Inc., manufactures and sells two products: Product H0 and Product Q8. 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 H0
300
9.0
2,700
Product Q8
700
12.0
8,400
Total direct labor-
hours
11,100
The direct labor rate is $16.50 per DLH. The direct materials cost per unit for each
product is given below:
Direct Materials Cost per Unit
Product H0
$112.00
Product Q8
$100.80
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 H0
Product Q8
Total
Labor-related
DLHs
$542,901
2,700
8,400
11,100
Machine setups
setups
20,244
400
300
700
General factory
MHs
433,608
4,300
4,600
8,900
$996,753
The overhead applied to each unit of Product Q8 under activity-based costing is closest
to:
3-445
94.
Abraham Company uses activity-based costing. The company has two products: A and B.
The annual production and sales of Product A is 200 units and of Product B is 1,000 units.
There are three activity cost pools, with estimated costs and expected activity as follows:
Estimated
Expected Activity
Activity Cost Pools
Overhead Cost
Product A
Product B
Total
Activity 1
$10,485
300
200
500
Activity 2
$35,264
1,600
300
1,900
Activity 3
$26,395
60
400
460
The activity rate for Activity 2 is closest to:
3-446
3-447
95.
Abraham Company uses activity-based costing. The company has two products: A and B.
The annual production and sales of Product A is 200 units and of Product B is 1,000 units.
There are three activity cost pools, with estimated costs and expected activity as follows:
Estimated
Expected Activity
Activity Cost Pools
Overhead Cost
Product A
Product B
Total
Activity 1
$10,485
300
200
500
Activity 2
$35,264
1,600
300
1,900
Activity 3
$26,395
60
400
460
Activity 1
500
Activity 2
Activity 3
460
The overhead cost per unit of Product B is closest to:
3-448
3-449
96.
Dunnivan, Inc., manufactures and sells two products: Product T4 and Product A1. 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 T4
900
8.0
7,200
Product A1
800
7.0
5,600
Total direct labor-
hours
12,800
The direct labor rate is $29.90 per DLH. The direct materials cost per unit for each
product is given below:
Direct Materials Cost per Unit
Product T4
$214.50
Product A1
$261.80
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 T4
Product A1
Total
Labor-related
DLHs
$598,016
7,200
5,600
12,800
Machine setups
setups
12,024
500
400
900
General factory
MHs
624,624
4,600
4,500
9,100
$1,234,664
The unit product cost of Product T4 under activity-based costing is closest to:
3-451
3-452
97.
Dunnivan, Inc., manufactures and sells two products: Product T4 and Product A1. 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 T4
900
8.0
7,200
Product A1
800
7.0
5,600
Total direct labor-
hours
12,800
The direct labor rate is $29.90 per DLH. The direct materials cost per unit for each
product is given below:
Direct Materials Cost per Unit
Product T4
$214.50
Product A1
$261.80
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 T4
Product A1
Total
Labor-related
DLHs
$598,016
7,200
5,600
12,800
Machine setups
setups
12,024
500
400
900
General factory
MHs
624,624
4,600
4,500
9,100
$1,234,664
The unit product cost of Product A1 under activity-based costing is closest to:
3-454
3-455
98.
Angara Corporation uses activity-based costing to determine product costs for external
financial reports. The company has provided the following data concerning its activity-
based costing system:
Activity Cost Pools
Estimated
(and Activity Measures)
Overhead Cost
Machine related (machine-hours)
$137,600
Batch setup (setups)
$532,800
General factory (direct labor-hours)
$105,300
Expected Activity
Activity Cost Pools
Product X
Product Y
Total
Machine related
1,000
7,000
8,000
Batch setup
3,000
5,000
8,000
General factory
7,000
2,000
9,000
The activity rate for the batch setup activity cost pool is closest to:
3-456
3-457
99.
Angara Corporation uses activity-based costing to determine product costs for external
financial reports. The company has provided the following data concerning its activity-
based costing system:
Activity Cost Pools
Estimated
(and Activity Measures)
Overhead Cost
Machine related (machine-hours)
$137,600
Batch setup (setups)
$532,800
General factory (direct labor-hours)
$105,300
Expected Activity
Activity Cost Pools
Product X
Product Y
Total
Machine related
1,000
7,000
8,000
Batch setup
3,000
5,000
8,000
General factory
7,000
2,000
9,000
Machine related
8,000
$17.20
per MH
Assuming that actual activity turns out to be the same as expected activity, the total
amount of overhead cost allocated to Product X would be closest to:
3-458
3-459
100.
Pachero, Inc., manufactures and sells two products: Product T1 and Product U6. 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 T1
400
6.0
2,400
Product U6
100
4.0
400
Total direct labor-
hours
2,800
he direct labor rate is $15.90 per DLH. The direct materials cost per unit is $259.80 for
Product T1 and $188.80 for Product U6
.
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 T1
Product U6
Total
Labor-related
DLHs
$71,428
2,400
400
2,800
Production orders
orders
108,136
600
800
1,400
General factory
MHs
430,560
3,400
3,100
6,500
$610,124
The activity rate for the Labor-Related activity cost pool under activity-based costing is
closest to:
3-460
3-461
101.
Pachero, Inc., manufactures and sells two products: Product T1 and Product U6. 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 T1
400
6.0
2,400
Product U6
100
4.0
400
Total direct labor-
hours
2,800
The direct labor rate is $15.90 per DLH. The direct materials cost per unit is $259.80 for
Product T1 and $188.80 for Product U6
.
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 T1
Product U6
Total
Labor-related
DLHs
$71,428
2,400
400
2,800
Production orders
orders
108,136
600
800
1,400
General factory
MHs
430,560
3,400
3,100
6,500
$610,124
The activity rate for the Production Orders activity cost pool under activity-based costing
is closest to:
3-462
102.
Pachero, Inc., manufactures and sells two products: Product T1 and Product U6. 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