Tarnish Industries produces miniature models of farm equipment. These collectibles are in great demand. It takes two operations, molding and finishing, to complete the miniatures. Next year's expected activities are shown in the following table:    Molding Finishing Direct labor hours 75,000 DLH 160,500 DLH Machine hours 98,000 MH 81,500 MH Tarnish Industries uses departmental overhead rates and is planning on a $1.80 per direct labor hour overhead rate for the Finishing department. Compute the budgeted manufacturing overhead cost for the Finishing department given the information shown in the table.

Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $30 per unit and $45 is used in direct labor, while the direct material for the double is $45 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 10,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: Activity CostPools Driver EstimatedOverhead Use perTwin Use perDouble Framing Square Feet of Pine $270,000 6,000 3,000 Padding Square Feet of Quilting 230,000 130,000 100,000 Filling Square Feet of Filling 240,000 450,000 350,000 Labeling Number of Boxes 250,000 850,000 400,000 Inspection Number of Inspections 165,000 11,000 4,000 After grouping cost pools and estimating overhead and activities, Box Springs determined these rates: Purchasing (per order) $56 Utilities (per square foot) 2 Machine Setups (per machine hour) 7 Supervision (per direct labor hour)…

Norrell Novelties, Inc., produces 225,000 units of balls used in its pinball games each year. An outside supplier has offered to supply the pinballs for $27 each. The unit cost of manufacturing the pinballs is calculated as follows: Direct materials $10.00 Direct labor 12.00 Variable overhead (power) 8.00 Fixed overhead 5.00 Total unit cost $40.00 Overhead is applied on the basis of machine hours; the pinballs require 120,000 machine hours per year. Assuming that none of the fixed costs are avoidable, which of the following alternatives is most cost effective? a.Norrell Novelties, Inc., should buy the pinballs as the analysis shows a $275,000 advantage in favor of buying the part from outside. b.Norrell Novelties, Inc., should make the pinballs as the analysis shows a $150,000 advantage in favor of making the part in house. c.Norrell Novelties, Inc., should make the pinballs as the fixed costs of $10 are not avoidable. d.Norrell Novelties, Inc., should buy the pinballs as…

Vikram