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69. National Inc. manufactures two models of CMD that can be used as cell phones, MPX,
and digital camcorders.
Model Annual Sales in Units
High F 10,000
Great P 16,000
National uses a volume-based costing system to apply factory overhead based on direct labor
dollars. The unit prime costs of each product were as follows:
High F Great P
Direct materials $38.00 $25.40
Direct labor $17.52 $13.14
Budget factory overhead:
Engineering and Design 2,409 engineering hours $404,712
Quality Control 12,848 inspection hours 269,808
Machinery 33,726 machine hours 539,616
Miscellaneous Overhead 26,400 direct labor hours 134,904
Total $1,349,040
National's controller had been researching activity-based costing and decided to switch to it. A
special study determined National's two products have the following budgeted activities:
High F Great P
Engineering and design hours 969 1,440
Quality control inspection hours 5,648 7,200
Machine hours 20,286 13,440
Labor hours 12,000 14,400
What is the overhead application rate using the firm's volume-based costing system (rounded to
the nearest percent or cents)?
70. National Inc. manufactures two models of CMD that can be used as cell phones, MPX,
and digital camcorders.
Model Annual Sales in Units
High F 10,000
Great P 16,000
National uses a volume-based costing system to apply factory overhead based on direct labor
dollars. The unit prime costs of each product were as follows:
High F Great P
Direct materials $38.00 $25.40
Direct labor $17.52 $13.14
Budget factory overhead:
Engineering and Design 2,409 engineering hours $404,712
Quality Control 12,848 inspection hours 269,808
Machinery 33,726 machine hours 539,616
Miscellaneous Overhead 26,400 direct labor hours 134,904
Total $1,349,040
National's controller had been researching activity-based costing and decided to switch to it. A
special study determined National's two products have the following budgeted activities:
High F Great P
Engineering and design hours 969 1,440
Quality control inspection hours 5,648 7,200
Machine hours 20,286 13,440
Labor hours 12,000 14,400
Using the firm's volume-based costing, applied factory overhead per unit for the High F model is
(rounded to the nearest cent):
71. National Inc. manufactures two models of CMD that can be used as cell phones, MPX,
and digital camcorders.
Model Annual Sales in Units
High F 10,000
Great P 16,000
National uses a volume-based costing system to apply factory overhead based on direct labor
dollars. The unit prime costs of each product were as follows:
High F Great P
Direct materials $38.00 $25.40
Direct labor $17.52 $13.14
Budget factory overhead:
Engineering and Design 2,409 engineering hours $404,712
Quality Control 12,848 inspection hours 269,808
Machinery 33,726 machine hours 539,616
Miscellaneous Overhead 26,400 direct labor hours 134,904
Total $1,349,040
National's controller had been researching activity-based costing and decided to switch to it. A
special study determined National's two products have the following budgeted activities:
High F Great P
Engineering and design hours 969 1,440
Quality control inspection hours 5,648 7,200
Machine hours 20,286 13,440
Labor hours 12,000 14,400
Using the firm's volume- based costing, applied factory overhead per unit for the Great P model
is (rounded to the nearest cent):
72. National Inc. manufactures two models of CMD that can be used as cell phones, MPX,
and digital camcorders.
Model Annual Sales in Units
High F 10,000
Great P 16,000
National uses a volume-based costing system to apply factory overhead based on direct labor
dollars. The unit prime costs of each product were as follows:
High F Great P
Direct materials $38.00 $25.40
Direct labor $17.52 $13.14
Budget factory overhead:
Engineering and Design 2,409 engineering hours $404,712
Quality Control 12,848 inspection hours 269,808
Machinery 33,726 machine hours 539,616
Miscellaneous Overhead 26,400 direct labor hours 134,904
Total $1,349,040
National's controller had been researching activity-based costing and decided to switch to it. A
special study determined National's two products have the following budgeted activities:
High F Great P
Engineering and design hours 969 1,440
Quality control inspection hours 5,648 7,200
Machine hours 20,286 13,440
Labor hours 12,000 14,400
Using activity-based costing, applied engineering and design factory overhead for the High F
model per unit is (rounded to the nearest cent):
73. National Inc. manufactures two models of CMD that can be used as cell phones, MPX,
and digital camcorders.
Model Annual Sales in Units
High F 10,000
Great P 16,000
National uses a volume-based costing system to apply factory overhead based on direct labor
dollars. The unit prime costs of each product were as follows:
High F Great P
Direct materials $38.00 $25.40
Direct labor $17.52 $13.14
Budget factory overhead:
Engineering and Design 2,409 engineering hours $404,712
Quality Control 12,848 inspection hours 269,808
Machinery 33,726 machine hours 539,616
Miscellaneous Overhead 26,400 direct labor hours 134,904
Total $1,349,040
National's controller had been researching activity-based costing and decided to switch to it. A
special study determined National's two products have the following budgeted activities:
High F Great P
Engineering and design hours 969 1,440
Quality control inspection hours 5,648 7,200
Machine hours 20,286 13,440
Labor hours 12,000 14,400
Using activity-based costing, applied quality control factory overhead for the High F model per
unit is (rounded to the nearest cent):
74. National Inc. manufactures two models of CMD that can be used as cell phones, MPX,
and digital camcorders.
Model Annual Sales in Units
High F 10,000
Great P 16,000
National uses a volume-based costing system to apply factory overhead based on direct labor
dollars. The unit prime costs of each product were as follows:
High F Great P
Direct materials $38.00 $25.40
Direct labor $17.52 $13.14
Budget factory overhead:
Engineering and Design 2,409 engineering hours $404,712
Quality Control 12,848 inspection hours 269,808
Machinery 33,726 machine hours 539,616
Miscellaneous Overhead 26,400 direct labor hours 134,904
Total $1,349,040
National's controller had been researching activity-based costing and decided to switch to it. A
special study determined National's two products have the following budgeted activities:
High F Great P
Engineering and design hours 969 1,440
Quality control inspection hours 5,648 7,200
Machine hours 20,286 13,440
Labor hours 12,000 14,400
Using activity-based costing, applied machinery overhead for the High F model per unit is
(rounded to the nearest cent):
75. National Inc. manufactures two models of CMD that can be used as cell phones, MPX,
and digital camcorders.
Model Annual Sales in Units
High F 10,000
Great P 16,000
National uses a volume-based costing system to apply factory overhead based on direct labor
dollars. The unit prime costs of each product were as follows:
High F Great P
Direct materials $38.00 $25.40
Direct labor $17.52 $13.14
Budget factory overhead:
Engineering and Design 2,409 engineering hours $404,712
Quality Control 12,848 inspection hours 269,808
Machinery 33,726 machine hours 539,616
Miscellaneous Overhead 26,400 direct labor hours 134,904
Total $1,349,040
National's controller had been researching activity-based costing and decided to switch to it. A
special study determined National's two products have the following budgeted activities:
High F Great P
Engineering and design hours 969 1,440
Quality control inspection hours 5,648 7,200
Machine hours 20,286 13,440
Labor hours 12,000 14,400
Using activity-based costing, applied miscellaneous overhead for the High F model per unit is
(rounded to the nearest cent):
76. National Inc. manufactures two models of CMD that can be used as cell phones, MPX,
and digital camcorders.
Model Annual Sales in Units
High F 10,000
Great P 16,000
National uses a volume-based costing system to apply factory overhead based on direct labor
dollars. The unit prime costs of each product were as follows:
High F Great P
Direct materials $38.00 $25.40
Direct labor $17.52 $13.14
Budget factory overhead:
Engineering and Design 2,409 engineering hours $404,712
Quality Control 12,848 inspection hours 269,808
Machinery 33,726 machine hours 539,616
Miscellaneous Overhead 26,400 direct labor hours 134,904
Total $1,349,040
National's controller had been researching activity-based costing and decided to switch to it. A
special study determined National's two products have the following budgeted activities:
High F Great P
Engineering and design hours 969 1,440
Quality control inspection hours 5,648 7,200
Machine hours 20,286 13,440
Labor hours 12,000 14,400
Using activity-based costing, total overhead per unit of the High F model is (rounded to the
nearest cent):
77. National Inc. manufactures two models of CMD that can be used as cell phones, MPX,
and digital camcorders.
Model Annual Sales in Units
High F 10,000
Great P 16,000
National uses a volume-based costing system to apply factory overhead based on direct labor
dollars. The unit prime costs of each product were as follows:
High F Great P
Direct materials $38.00 $25.40
Direct labor $17.52 $13.14
Budget factory overhead:
Engineering and Design 2,409 engineering hours $404,712
Quality Control 12,848 inspection hours 269,808
Machinery 33,726 machine hours 539,616
Miscellaneous Overhead 26,400 direct labor hours 134,904
Total $1,349,040
National's controller had been researching activity-based costing and decided to switch to it. A
special study determined National's two products have the following budgeted activities:
High F Great P
Engineering and design hours 969 1,440
Quality control inspection hours 5,648 7,200
Machine hours 20,286 13,440
Labor hours 12,000 14,400
Using activity-based costing, applied engineering and design factory overhead for the Great P
model per unit is (rounded to the nearest cent):
78. National Inc. manufactures two models of CMD that can be used as cell phones, MPX,
and digital camcorders.
Model Annual Sales in Units
High F 10,000
Great P 16,000
National uses a volume-based costing system to apply factory overhead based on direct labor
dollars. The unit prime costs of each product were as follows:
High F Great P
Direct materials $38.00 $25.40
Direct labor $17.52 $13.14
Budget factory overhead:
Engineering and Design 2,409 engineering hours $404,712
Quality Control 12,848 inspection hours 269,808
Machinery 33,726 machine hours 539,616
Miscellaneous Overhead 26,400 direct labor hours 134,904
Total $1,349,040
National's controller had been researching activity-based costing and decided to switch to it. A
special study determined National's two products have the following budgeted activities:
High F Great P
Engineering and design hours 969 1,440
Quality control inspection hours 5,648 7,200
Machine hours 20,286 13,440
Labor hours 12,000 14,400
Using activity-based costing, applied quality control factory overhead for the Great P model per
unit is (rounded to the nearest cent):
