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90. Frogge, Inc., manufactures and sells two products: Product H0 and Product N3. 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 700 8.0 5,600
Product N3 500 10.0 5,000
Total direct labor-hours 10,600
The direct labor rate is $23.60 per DLH. The direct materials cost per unit is $160.60 for Product
H0 and $240.30 for Product N3
.
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 H0
Product N3
Total
Labor-related DLHs $311,640 5,600 5,000 10,600
Production orders orders 27,654 600 500 1,100
General factory MHs 518,586 3,000 2,700 5,700
$857,880
The overhead applied to each unit of Product H0 under activity-based costing is closest to:
3-145
91. Frogge, Inc., manufactures and sells two products: Product H0 and Product N3. 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 700 8.0 5,600
Product N3 500 10.0 5,000
Total direct labor-hours 10,600
The direct labor rate is $23.60 per DLH. The direct materials cost per unit is $160.60 for Product
H0 and $240.30 for Product N3
.
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 H0
Product N3
Total
Labor-related DLHs $311,640 5,600 5,000 10,600
Production orders orders 27,654 600 500 1,100
General factory MHs 518,586 3,000 2,700 5,700
$857,880
The overhead applied to each unit of Product N3 under activity-based costing is closest to:
92. 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 H0 under activity-based costing is closest to:
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:
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:
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
The overhead cost per unit of Product B is closest to:
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:
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:
