41.Which of the following is
nota factory overhead allocation method?
a.single plantwide rate
b.multiple departmental rates
c.factory costing
d.activity-based costing
42.Pinacle Corp. budgeted $700,000 of overhead cost for the current year. Actual overhead costs for the year were$650,000. Pinacle's plantwide allocation base, machine hours, was budgeted at 100,000 hours. Actual machinehours were 80,000. A total of 100,000 units was budgeted to be produced and 98,000 units were actually produced.Pinacle's plantwide factory overhead rate for the current year is:
a.$8.13 per machine hour
b.$7.00 per machine hour
c.$6.50 per machine hour
d.$8.75 per machine hour
43.Everest Co. uses a plantwide factory overhead rate based on direct labor hours. Overhead costs would beovercharged to which of the following departments?
a.A labor-intensive department
b.A capital-intensive department
c.A materials-intensive department
d.All of the above
Adirondak Marketing Inc. manufactures two products, A and B. Presently; the company uses a single plantwidefactory overhead rate for allocating overhead to products. However, management is considering moving to amultiple department rate system for allocating overhead.
|
Overhead
|
Total Direct
Labor Hours
|
DLH per Product
|
A
|
B
|
Painting Dept.
|
$250,000
|
10,000
|
16
|
4
|
Finishing Dept.
|
75,000
|
12,000
|
4
|
16
|
Totals
|
$325,000
|
22,000
|
20
|
20
|
|
|
|
|
|
44.Calculate the plantwide factory overhead rate for Adirondack Marketing Inc.
a.$25.00 per dlh
b.$0.07 per dlh
c.$14.77 per dlh
d.$ 6.25 per dlh
45.Calculate the overhead rate per unit for Product A in the painting department of Adirondack Marketing Inc.
a.$236.32 per unit
b.$325.00 per unit
c.$147.70 per unit
d.$161.00 per unit
Blue Ridge Marketing Inc. manufactures two products, A and B. Presently; the company uses a single plantwidefactory overhead rate for allocating overhead to products. However, management is considering moving to amultiple department rate system for allocating overhead. The following table presents information about estimatedoverhead and direct labor hours.
|
Overhead
|
Direct Labor
Hours (dlh)
|
Product
|
A
|
B
|
Painting Dept.
|
$248,000
|
10,000 dlh
|
16 dlh
|
4 dlh
|
Finishing Dept.
|
72,000
|
10,000
|
4
|
16
|
Totals
|
$320,000
|
20,000 dlh
|
20 dlh
|
20 dlh
|
|
|
|
|
|
46.Using a single plantwide rate, determine the overhead rate per unit for Blue Ridge Marketing Inc.'s Product B.
a. $496.00
b. $144.00
c. $640.00
d. $320.00
The 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 of
Units
|
?
Labor Hours
Per Unit
|
?Machine Hours
Per 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. Allof the labor hours take place in the Assembly department, which has an estimated total overhead of $72,000.
47.The Ramapo Company uses a single overhead rate to apply all overhead costs based on labor hours. What is theoverhead cost per unit for Blinks?
a. $78.00
b. $19.50
c. $37.45
d. $56.00
48.The Ramapo Company uses a single overhead rate to apply all overhead costs based on labor hours. What is theoverhead cost per unit for Dinks?
a. $77.00
b. $39.00
c. $19.50
d. $59.92
49.The Ramapo Company uses a single overhead rate to apply all overhead costs. What would the single plantwiderate be if it was based on machine hours instead of labor hours?
a.$9.00 per machine hour
b.$19.50 per machine hour
c.$7.43 per machine hour
d.$4.00 per machine hour
50.Common allocation bases are
a.direct labor dollars, direct labor hours, direct material dollars
b.direct labor dollars, direct labor hours, machine hours
c.direct labor dollars, direct labor hours, machine dollars
d.machine dollars, direct labor dollars, direct labor hours