Accounting Chapter 9 4 Company Has Identified The Following Overhead

78. A company has identified the following overhead costs and cost drivers for the coming

year: (CIA adapted)

Budgeted direct labor cost was $100,000 and budgeted direct material cost was $280,000. The

following information was collected on three jobs that were completed during the year:

If the company uses traditional costing and allocates overhead using direct labor cost, what is the

cost of each unit of Job 102?

79. Scottso Enterprises has identified the following overhead costs and cost drivers for the

coming year:

Budgeted direct labor cost was $200,000 and budgeted direct material cost was $800,000. The

following information was collected on three jobs that were completed during the month:

If the company uses activity-based costing (ABC), how much overhead cost should be assigned to

Job A-15?

80. Scottso Enterprises has identified the following overhead costs and cost drivers for the

coming year:

Budgeted direct labor cost was $200,000 and budgeted direct material cost was $800,000. The

following information was collected on three jobs that were completed during the month:

If the company uses activity-based costing (ABC), how much overhead cost should be assigned to

Job B-32?

81. Scottso Enterprises has identified the following overhead costs and cost drivers for the

coming year:

Budgeted direct labor cost was $200,000 and budgeted direct material cost was $800,000. The

following information was collected on three jobs that were completed during the month:

If the company uses activity-based costing (ABC), what is the cost of each unit of Job A–28?

82. Scottso Enterprises has identified the following overhead costs and cost drivers for the

coming year:

Budgeted direct labor cost was $200,000 and budgeted direct material cost was $800,000. The

following information was collected on three jobs that were completed during the month:

The company prices its products at 150% of cost. If the company uses activity–based costing

(ABC), the price of each unit of Job B-32 would be:

83. Scottso Enterprises has identified the following overhead costs and cost drivers for the

coming year:

Budgeted direct labor cost was $200,000 and budgeted direct material cost was $800,000. The

following information was collected on three jobs that were completed during the month:

If the company uses traditional costing and allocates overhead using direct materials cost, how

much overhead cost should be assigned to Job A-15?

84. Scottso Enterprises has identified the following overhead costs and cost drivers for the

coming year:

Budgeted direct labor cost was $200,000 and budgeted direct material cost was $800,000. The

following information was collected on three jobs that were completed during the month:

If the company uses traditional costing and allocates overhead using direct materials cost, what is

the cost of each unit of Job A–28?

9-68

85. Addy Company makes two products: Product A and Product B. Annual production and

sales are 1,700 units of Product A and 1,100 units of Product B. The company has traditionally

used direct labor-hours as the basis for applying all manufacturing overhead to products. Product

A requires 0.3 direct labor hours per unit and Product B requires 0.6 direct labor hours per unit.

The total estimated overhead for next period is $98,785.

The company is considering switching to an activity-based costing system for the purpose of

computing unit product costs for external reports. The new activity-based costing system would

have three overhead activity cost pools—Activity 1, Activity 2, and General Factory—with

estimated overhead costs and expected activity as follows:

(Note: The General Factory activity cost pool’s costs are allocated on the basis of direct labor

hours.)

The predetermined overhead rate under the traditional costing system is closest to:

9-69

86. Addy Company makes two products: Product A and Product B. Annual production and

sales are 1,700 units of Product A and 1,100 units of Product B. The company has traditionally

used direct labor-hours as the basis for applying all manufacturing overhead to products. Product

A requires 0.3 direct labor hours per unit and Product B requires 0.6 direct labor hours per unit.

The total estimated overhead for next period is $98,785.

The company is considering switching to an activity-based costing system for the purpose of

computing unit product costs for external reports. The new activity-based costing system would

have three overhead activity cost pools—Activity 1, Activity 2, and General Factory—with

estimated overhead costs and expected activity as follows:

(Note: The General Factory activity cost pool’s costs are allocated on the basis of direct labor

hours.)

The overhead cost per unit of Product B under the traditional costing system is closest to:

9-70

87. Addy Company makes two products: Product A and Product B. Annual production and

sales are 1,700 units of Product A and 1,100 units of Product B. The company has traditionally

used direct labor-hours as the basis for applying all manufacturing overhead to products. Product

A requires 0.3 direct labor hours per unit and Product B requires 0.6 direct labor hours per unit.

The total estimated overhead for next period is $98,785.

The company is considering switching to an activity-based costing system for the purpose of

computing unit product costs for external reports. The new activity-based costing system would

have three overhead activity cost pools—Activity 1, Activity 2, and General Factory—with

estimated overhead costs and expected activity as follows:

(Note: The General Factory activity cost pool’s costs are allocated on the basis of direct labor

hours.)

The predetermined overhead rate (i.e., activity rate) for Activity 2 under the activity-based costing

system is closest to:

9-71

88. Addy Company makes two products: Product A and Product B. Annual production and

sales are 1,700 units of Product A and 1,100 units of Product B. The company has traditionally

used direct labor-hours as the basis for applying all manufacturing overhead to products. Product

A requires 0.3 direct labor hours per unit and Product B requires 0.6 direct labor hours per unit.

The total estimated overhead for next period is $98,785.

The company is considering switching to an activity-based costing system for the purpose of

computing unit product costs for external reports. The new activity-based costing system would

have three overhead activity cost pools—Activity 1, Activity 2, and General Factory—with

estimated overhead costs and expected activity as follows:

(Note: The General Factory activity cost pool’s costs are allocated on the basis of direct labor

hours.)

The overhead cost per unit of Product B under the activity-based costing system is closest to:

9-72

89. Shininger Manufacturing Corporation has a traditional costing system in which it applies

manufacturing overhead to its products using a predetermined overhead rate based on direct

labor-hours (DLHs). The company has two products, G27U and W21K, about which it has

provided the following data:

The company’s estimated total manufacturing overhead for the year is $985,440 and the

company’s estimated total direct labor-hours for the year is 24,000.

The company is considering using a variation of activity-based costing to determine its unit

product costs for external reports. Data for this proposed activity-based costing system appear

below:

The manufacturing overhead that would be applied to a unit of product G27U under the

company’s traditional costing system is closest to:

9-74

90. Shininger Manufacturing Corporation has a traditional costing system in which it applies

manufacturing overhead to its products using a predetermined overhead rate based on direct

labor-hours (DLHs). The company has two products, G27U and W21K, about which it has

provided the following data:

The company’s estimated total manufacturing overhead for the year is $985,440 and the

company’s estimated total direct labor-hours for the year is 24,000.

The company is considering using a variation of activity-based costing to determine its unit

product costs for external reports. Data for this proposed activity-based costing system appear

below:

The manufacturing overhead that would be applied to a unit of product W21K under the activity–

based costing system is closest to:

9-76

91. Latting Manufacturing Corporation has a traditional costing system in which it applies

manufacturing overhead to its products using a predetermined overhead rate based on direct

labor-hours (DLHs). The company has two products, T73C and R28K, about which it has provided

the following data:

The company’s estimated total manufacturing overhead for the year is $1,526,700 and the

company’s estimated total direct labor-hours for the year is 30,000.

The company is considering using a variation of activity-based costing to determine its unit

product costs for external reports. Data for this proposed activity-based costing system appear

below:

The manufacturing overhead that would be applied to a unit of product T73C under the company’s

traditional costing system is closest to:

9-78

92. Latting Manufacturing Corporation has a traditional costing system in which it applies

manufacturing overhead to its products using a predetermined overhead rate based on direct

labor-hours (DLHs). The company has two products, T73C and R28K, about which it has provided

the following data:

The company’s estimated total manufacturing overhead for the year is $1,526,700 and the

company’s estimated total direct labor-hours for the year is 30,000.

The company is considering using a variation of activity-based costing to determine its unit

product costs for external reports. Data for this proposed activity-based costing system appear

below:

The manufacturing overhead that would be applied to a unit of product R28K under the activity–

based costing system is closest to:

9-80

93. Scholes Manufacturing Corporation has a traditional costing system in which it applies

manufacturing overhead to its products using a predetermined overhead rate based on direct

labor-hours (DLHs). The company has two products, L45Y and F91I, about which it has provided

the following data:

The company’s estimated total manufacturing overhead for the year is $3,170,400 and the

company’s estimated total direct labor-hours for the year is 60,000.

The company is considering using a variation of activity-based costing to determine its unit

product costs for external reports. Data for this proposed activity-based costing system appear

below:

The unit product cost of product L45Y under the company’s traditional costing system is closest

to: