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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Calverton, Inc. produces two different products (Standard and Luxury) using two different activities: Machining, which uses machine hours as an activity
driver, and Inspection, which uses number of batches as an activity driver. The cost of Machining is $780,000, while the cost of Inspection is $46,800.
Standard is assigned $452,400 in Machining cost, and $35,568 in Inspection cost. What proportion of Inspection activity is used by Luxury?
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Transcribed Image Text:9.
Calverton, Inc. produces two different products (Standard and Luxury) using two different activities: Machining, which uses machine hours as an activity
driver, and Inspection, which uses number of batches as an activity driver. The cost of Machining is $780,000, while the cost of Inspection is $46,800.
Standard is assigned $452,400 in Machining cost, and $35,568 in Inspection cost. What proportion of Inspection activity is used by Luxury?
00:41:23
Multiple Choice
32%
24%
69%
66%
( Prev
9 of 10
Next >
MacBook Pro
%23
96
2
3
4
6
8
Q
E
R
P
A
D
G
H
J
K
>
V
M
command
command
option
O O O
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- Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Product Number ofUnits Direct Labor HoursPer Unit Machine HoursPer Unit Blinks 1,000 4 5 Dinks 2,000 2 8 All of the machine hours take place in the Fabrication Department, which has an estimated overhead of $84,000. All of the labor hours take place in the Assembly Department, which has an estimated total overhead of $72,000. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Blinks is a.$37.45 b.$19.50 c.$56.00 d.$78.00arrow_forwardTri-Bikes manufactures two different levels of bicycles - the Standard and the Extreme. The total overhead of $300,000 has traditionally been allocated by direct labor hours, with 150,000 hours for the Standard and 50,000 hours for the Extreme. After analyzing and assigning costs to two cost pools, it was determined that machine hours is estimated to have $180,000 of overhead, with 4,000 hours used on the Standard product and 1,000 hours used on the Extreme product. It was also estimated that the setup cost pool would have $120,000 of overhead, with 1,000 hours for the Standard and 1,500 hours for the Extreme. PLEASE NOTE: Predetermined overhead rates will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56). The rates will include their proper label according to the textbook examples (no abbreviations). All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). What is the overhead cost per product,…arrow_forward
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