A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs of $84,399 and the cost drivers for Product 1 is 200 and 500 for Product 2. The assembling activity pool has estimated costs of $65,366 and the cost drivers for Product 1 is 350 and 275 for Product 2. Direct labor hours for Product 1 is 323 and 371 for Product 2. What is the total manufacturing overhead rate to be used under traditional cost accounting?

Maxey & Sons manufactures two types of storage cabinets-Type A and Type B—and applies manufacturing overhead to all units at the rate of $140 per machine hour. Production information follows. Descriptions Anticipated volume (units) Direct-material cost per unit Direct-labor cost per unit Descriptions The controller, who is studying the use of activity-based costing, has determined that the firm's overhead can be identified with three activities: manufacturing setups, machine processing, and product shipping. Data on the number of setups, machine hours, and outgoing shipments, which are the activities' three respective cost drivers, follow. Setups Machine hours Outgoing shipments Туре А 160 56,000 200 Туре А 28,000 $38 43 Required 1 Required 2 Required 3 Туре В Unit manufacturing costs 120 78,750 150 The firm's total overhead of $18,865,000 is subdivided as follows: manufacturing setups, $4,116,000; machine processing, $11,319,000 and product shipping, $3,430,000. Required: 1. Compute…

The following is taken from Clausen Company’s internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor hours, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of overhead cost allocated to Dept. 1 using activity-based costing.    Direct Labor Hours   Machine Hours   Operating Dept. 1   1,020         9,600     Operating Dept. 2   2,380         6,400     Totals   3,400         16,000                         Factory overhead costs                   Rent and utilities           $ 22,900     Indirect labor             18,500     Depreciation – Equipment             15,600     Total factory overhead           $ 57,000

Hails Corporation manufactures two products: Product Q21F and Product H44W. The company uses a plantwide overhead rate based on direct labor- hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Q21F and H44W. Activity Cost Pool Machining Machine setups Product design Order size Machine-hours Number of setups Number of products Direct labor-hours 26.71% 50.00% 34.18% Activity Measure O 60.89% Machine-hours Number of setups Number of products Direct labor-hours Activity Measure Total Cost Total Activity $ 195,000 13,000 MHs 90,000 150 setups $ $ 64,000 $ 280,000 Product Q21F 9,000 80 1 6,000 Using the ABC system, the percentage of the total overhead cost that is assigned to Product Q21F is closest to: 2 products 10,000 DLHs Product H44W 4,000 70 1 4,000

Maxey & Sons manufactures two types of storage cabinets—Type A and Type B—and applies manufacturing overhead to all units at the rate of $120 per machine hour. Production information follows.       Type A    Type BAnticipated volume (units)         24,000              45,000     Direct-material cost per unit    $    28         $    42     Direct-labor cost per unit         33              33      The controller, who is studying the use of activity-based costing, has determined that the firm’s overhead can be identified with three activities: manufacturing setups, machine processing, and product shipping. Data on the number of setups, machine hours, and outgoing shipments, which are the activities’ three respective cost drivers, follow.       Type A    Type B    TotalSetups         140              100              240     Machine hours         48,000              67,500              115,500     Outgoing shipments         200              150              350      The firm’s total…

Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours.   Overhead DirectLabor Hours (dlh) Product  A   B  Painting Dept. $259,500   10,600 dlh   12 dlh 7 dlh Finishing Dept. 72,700   8,000     2   16       Totals $332,200   18,600 dlh   14 dlh 23 dlh The factory overhead allocated per unit of Product B in the Painting Department if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is a.$63.61 per unit b.$125.02 per unit c.$24.48 per unit d.$171.36 per unit

Rex Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Compute the overhead rate for each activity. Round your answers to two decimal places. Overhead Overhead Annual Rate per Activity per Activity Usage Activity Machine Setups $157,850 4,100 $ Machine Hours 324,622 14,114 2$ Inspections 119,000 3,400

Brannon Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information follows: Cost Pool Allocation Base Overhead Rate Materials handling Number of parts $.08 Machining Machine hours $7.20 Assembling Number of parts $.35 Packaging Number of finished units $2.70 What is the cost of machining per ceiling fan? Brannon Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information follows: Cost Pool Allocation Base Overhead Rate Materials handling Number of parts $.08 Machining Machine hours $7.20 Assembling Number of parts $.35 Packaging Number of finished units $2.70 What is the cost of machining per ceiling fan? $144.00 $18.00 $180.00 $30.00

Multiple Choice $9,907.97 $89,171.73 $5,173.02 $136.51

Assume that company makes only two products: Product A and Product B. The company’s activity-based costing system has allocated $96,750 to an activity called machine setups. It is considering allocating the machine setups cost to its products using either the number of setups or setup hours as the activity measure. It gathered the following data with respect to these two potential activity measures:     Product A Product B Number of machine setups 30 45 Number of setup hours per setup 6 6 If the company uses number of setup hours as the activity measure, how much machine setup activity cost would be allocated to Product A?