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100. Time-driven ABC provides a direct way to measure:
101. Everlast Co. manufactures a variety of drill bits. The company's plant is partially
automated. The budget for the year includes $432,000 payroll for 4,800 direct labor-hours. Listed
below is cost driver information used in the product-costing system:
Overhead Cost Pool Budgeted Overhead Cost Driver Estimated Cost
Driver Level
Machine setups $120,000 # of setups 120 setups
Materials handling 104,400 # of barrels 8,700 barrels
Quality control 264,000 # of inspections 1,100 inspections
Other overhead cost 144,000 # of machine hours 12,000 machine hours
Total overhead $632,400
A current product order has the following requirements:
Machine setups 8 setups
Materials handling 606 barrels
Quality inspections 80 inspections
Machine hours 830 machine hours
Direct labor hour 336 hours
What is the total manufacturing overhead for the current product order if the firm uses a
plantwide rate based on direct labor-hours?
102. Everlast Co. manufactures a variety of drill bits. The company's plant is partially
automated. The budget for the year includes $432,000 payroll for 4,800 direct labor-hours. Listed
below is cost driver information used in the product-costing system:
Overhead Cost Pool Budgeted Overhead Cost Driver Estimated Cost
Driver Level
Machine setups $120,000 # of setups 120 setups
Materials handling 104,400 # of barrels 8,700 barrels
Quality control 264,000 # of inspections 1,100 inspections
Other overhead cost 144,000 # of machine hours 12,000 machine hours
Total overhead $632,400
A current product order has the following requirements:
Machine setups 8 setups
Materials handling 606 barrels
Quality inspections 80 inspections
Machine hours 830 machine hours
Direct labor hour 336 hours
What is the total manufacturing overhead for the current product order if the firm assigns
overhead costs based on machine hours?
103. Everlast Co. manufactures a variety of drill bits. The company's plant is partially
automated. The budget for the year includes $432,000 payroll for 4,800 direct labor-hours. Listed
below is cost driver information used in the product-costing system:
Overhead Cost Pool Budgeted Overhead Cost Driver Estimated Cost
Driver Level
Machine setups $120,000 # of setups 120 setups
Materials handling 104,400 # of barrels 8,700 barrels
Quality control 264,000 # of inspections 1,100 inspections
Other overhead cost 144,000 # of machine hours 12,000 machine hours
Total overhead $632,400
A current product order has the following requirements:
Machine setups 8 setups
Materials handling 606 barrels
Quality inspections 80 inspections
Machine hours 830 machine hours
Direct labor hour 336 hours
Using ABC, how much machine setup overhead is assigned to the order?
104. Everlast Co. manufactures a variety of drill bits. The company's plant is partially
automated. The budget for the year includes $432,000 payroll for 4,800 direct labor-hours. Listed
below is cost driver information used in the product-costing system:
Overhead Cost Pool Budgeted Overhead Cost Driver Estimated Cost
Driver Level
Machine setups $120,000 # of setups 120 setups
Materials handling 104,400 # of barrels 8,700 barrels
Quality control 264,000 # of inspections 1,100 inspections
Other overhead cost 144,000 # of machine hours 12,000 machine hours
Total overhead $632,400
A current product order has the following requirements:
Machine setups 8 setups
Materials handling 606 barrels
Quality inspections 80 inspections
Machine hours 830 machine hours
Direct labor hour 336 hours
Using ABC, how much material handling overhead is assigned to the order?
105. Everlast Co. manufactures a variety of drill bits. The company's plant is partially
automated. The budget for the year includes $432,000 payroll for 4,800 direct labor-hours. Listed
below is cost driver information used in the product-costing system:
Overhead Cost Pool Budgeted Overhead Cost Driver Estimated Cost
Driver Level
Machine setups $120,000 # of setups 120 setups
Materials handling 104,400 # of barrels 8,700 barrels
Quality control 264,000 # of inspections 1,100 inspections
Other overhead cost 144,000 # of machine hours 12,000 machine hours
Total overhead $632,400
A current product order has the following requirements:
Machine setups 8 setups
Materials handling 606 barrels
Quality inspections 80 inspections
Machine hours 830 machine hours
Direct labor hour 336 hours
Using ABC, how much quality control overhead is assigned to the order?
106. Everlast Co. manufactures a variety of drill bits. The company's plant is partially
automated. The budget for the year includes $432,000 payroll for 4,800 direct labor-hours. Listed
below is cost driver information used in the product-costing system:
Overhead Cost Pool Budgeted Overhead Cost Driver Estimated Cost
Driver Level
Machine setups $120,000 # of setups 120 setups
Materials handling 104,400 # of barrels 8,700 barrels
Quality control 264,000 # of inspections 1,100 inspections
Other overhead cost 144,000 # of machine hours 12,000 machine hours
Total overhead $632,400
A current product order has the following requirements:
Machine setups 8 setups
Materials handling 606 barrels
Quality inspections 80 inspections
Machine hours 830 machine hours
Direct labor hour 336 hours
Using ABC, how much other overhead is assigned to the order?
107. Everlast Co. manufactures a variety of drill bits. The company's plant is partially
automated. The budget for the year includes $432,000 payroll for 4,800 direct labor-hours. Listed
below is cost driver information used in the product-costing system:
Overhead Cost Pool Budgeted Overhead Cost Driver Estimated Cost
Driver Level
Machine setups $120,000 # of setups 120 setups
Materials handling 104,400 # of barrels 8,700 barrels
Quality control 264,000 # of inspections 1,100 inspections
Other overhead cost 144,000 # of machine hours 12,000 machine hours
Total overhead $632,400
A current product order has the following requirements:
Machine setups 8 setups
Materials handling 606 barrels
Quality inspections 80 inspections
Machine hours 830 machine hours
Direct labor hour 336 hours
Using ABC, how much total overhead is assigned to the order?
108. Shaver Co. manufactures a variety of electric razors for men and women. The company's
plant is partially automated. Listed below is cost driver information used in the product-costing
system:
Overhead Cost Pool Budgeted Overhead Cost Budgeted Cost Driver
Level Cost Driver
Machinery depreciation/maintenance $168,640 27,200 Machine
hours
Factory depreciation/utilities/insurance 127,840 27,200 Machine
hours
Product design 554,400 38,500 Hours in design
Material handling 1,078,000 134,750 Pounds of raw materials
In addition, Shaver expects to spend $514,368 for 8,037 direct labor-hours. Two current product
orders had the following requirements:
Men’s Razors Women’s Razors
Units produced and sold 20,000 26,000
Direct labor hours 30 40
Pounds of raw materials 860 750
Hours in design 20 23
Machine hours 65 50
What is the total manufacturing overhead assigned to the current order for Men's Razors if the
firm uses a volume-based plant wide overhead rate based on direct labor dollars?
109. Shaver Co. manufactures a variety of electric razors for men and women. The company's
plant is partially automated. Listed below is cost driver information used in the product-costing
system:
Overhead Cost Pool Budgeted Overhead Cost Budgeted Cost Driver
Level Cost Driver
Machinery depreciation/maintenance $168,640 27,200 Machine
hours
Factory depreciation/utilities/insurance 127,840 27,200 Machine
hours
Product design 554,400 38,500 Hours in design
Material handling 1,078,000 134,750 Pounds of raw materials
In addition, Shaver expects to spend $514,368 for 8,037 direct labor-hours. Two current product
orders had the following requirements:
Men’s Razors Women’s Razors
Units produced and sold 20,000 26,000
Direct labor hours 30 40
Pounds of raw materials 860 750
Hours in design 20 23
Machine hours 65 50
What is the total manufacturing overhead assigned to the current order for Women's Razors if
the firm uses a volume-based plant wide overhead rate based on direct labor hours?
110. Shaver Co. manufactures a variety of electric razors for men and women. The company's
plant is partially automated. Listed below is cost driver information used in the product-costing
system:
Overhead Cost Pool Budgeted Overhead Cost Budgeted Cost Driver
Level Cost Driver
Machinery depreciation/maintenance $168,640 27,200 Machine
hours
Factory depreciation/utilities/insurance 127,840 27,200 Machine
hours
Product design 554,400 38,500 Hours in design
Material handling 1,078,000 134,750 Pounds of raw materials
In addition, Shaver expects to spend $514,368 for 8,037 direct labor-hours. Two current product
orders had the following requirements:
Men’s Razors Women’s Razors
Units produced and sold 20,000 26,000
Direct labor hours 30 40
Pounds of raw materials 860 750
Hours in design 20 23
Machine hours 65 50
Using ABC, how much facility-level overhead is assigned to the current order for Men's Razors?
