3-463
3-464
103.
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
Overhead Cost
Product T1
Product U6
Total
Labor-related
$71,428
2,400
400
2,800
Production orders
108,136
600
800
1,400
General factory
430,560
3,400
3,100
6,500
$610,124
The unit product cost of Product T1 under activity-based costing is closest to:
3-465
3-466
3-467
104.
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
Overhead Cost
Product T1
Product U6
Total
Labor-related
$71,428
2,400
400
2,800
Production orders
108,136
600
800
1,400
General factory
430,560
3,400
3,100
6,500
$610,124
The unit product cost of Product U6 under activity-based costing is closest to:
3-468
3-469
3-470
105.
Olide, Inc., manufactures and sells two products: Product B9 and Product C8. The annual
production and sales of Product of B9 is 300 units and of Product C8 is 100 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 B9
Product C8
Total
Labor-related
DLHs
$67,966
2,400
1,000
3,400
Production orders
orders
13,874
300
400
700
General factory
MHs
283,911
5,000
5,100
10,100
$365,751
Labor-related
DLHs
$19.99
per DLH
The overhead applied to each unit of Product B9 under activity-based costing is closest
to:
3-471
3-472
106.
Olide, Inc., manufactures and sells two products: Product B9 and Product C8. The annual
production and sales of Product of B9 is 300 units and of Product C8 is 100 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 B9
Product C8
Total
Labor-related
DLHs
$67,966
2,400
1,000
3,400
Production orders
orders
13,874
300
400
700
General factory
MHs
283,911
5,000
5,100
10,100
$365,751
The overhead applied to each unit of Product C8 under activity-based costing is closest
to:
Labor-related
DLHs
$19.99
per DLH
Production orders
orders
$19.82
per order
3-473
3-474
107.
Bohringer, Inc., manufactures and sells two products: Product A1 and Product X5. 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 A1
200
9.0
1,800
Product X5
1,000
6.0
6,000
Total direct labor-
hours
7,800
The direct labor rate is $28.20 per DLH. The direct materials cost per unit is $256.50 for
Product A1 and $165.20 for Product X5
.
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
Overhead Cost
Product A1
Product X5
Total
Labor-related
$315,588
1,800
6,000
7,800
Production orders
26,761
300
400
700
General factory
630,800
4,800
4,700
9,500
$973,149
The activity rate for the Labor-Related activity cost pool under activity-based costing is
closest to:
3-475
3-476
108.
Bohringer, Inc., manufactures and sells two products: Product A1 and Product X5. 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 A1
200
9.0
1,800
Product X5
1,000
6.0
6,000
Total direct labor-
hours
7,800
The direct labor rate is $28.20 per DLH. The direct materials cost per unit is $256.50 for
Product A1 and $165.20 for Product X5
.
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
Overhead Cost
Product A1
Product X5
Total
Labor-related
$315,588
1,800
6,000
7,800
Production orders
26,761
300
400
700
General factory
630,800
4,800
4,700
9,500
$973,149
The activity rate for the Production Orders activity cost pool under activity-based costing
is closest to:
3-477
3-478
109.
Bohringer, Inc., manufactures and sells two products: Product A1 and Product X5. 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 A1
200
9.0
1,800
Product X5
1,000
6.0
6,000
Total direct labor-
hours
7,800
The direct labor rate is $28.20 per DLH. The direct materials cost per unit is $256.50 for
Product A1 and $165.20 for Product X5
.
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
Overhead Cost
Product A1
Product X5
Total
Labor-related
$315,588
1,800
6,000
7,800
Production orders
26,761
300
400
700
General factory
630,800
4,800
4,700
9,500
$973,149
The activity rate for the General Factory activity cost pool under activity-based costing is
closest to:
3-479
3-480
110.
Bohringer, Inc., manufactures and sells two products: Product A1 and Product X5. 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 A1
200
9.0
1,800
Product X5
1,000
6.0
6,000
Total direct labor-
hours
7,800
The direct labor rate is $28.20 per DLH. The direct materials cost per unit is $256.50 for
Product A1 and $165.20 for Product X5
.
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
Overhead Cost
Product A1
Product X5
Total
Labor-related
$315,588
1,800
6,000
7,800
Production orders
26,761
300
400
700
General factory
630,800
4,800
4,700
9,500
$973,149
The total overhead applied to Product A1 under activity-based costing is closest to:
3-481
3-482
111.
Bohringer, Inc., manufactures and sells two products: Product A1 and Product X5. 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 A1
200
9.0
1,800
Product X5
1,000
6.0
6,000
Total direct labor-
hours
7,800
The direct labor rate is $28.20 per DLH. The direct materials cost per unit is $256.50 for
Product A1 and $165.20 for Product X5
.
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
Overhead Cost
Product A1
Product X5
Total
Labor-related
$315,588
1,800
6,000
7,800
Production orders
26,761
300
400
700
General factory
630,800
4,800
4,700
9,500
$973,149
The total overhead applied to Product X5 under activity-based costing is closest to: