71.What is the Fabrication Department overhead rate per machine hour? a. $10.50 b. $9.00 c. $8.12 d. $3.75 72.All of the following can be used as an allocation base for calculating factory...







71.What is the Fabrication Department overhead rate per machine hour?



a. $10.50



b. $9.00



c. $8.12



d. $3.75





72.All of the following can be used as an allocation base for calculating factory overhead rates
except:



a.direct labor dollars



b.direct labor hours



c.machine hours



d.total units produced











73.Which of the following are the two most common allocation bases for factory overhead?



a.Total overhead dollars and machine hours



b.Direct labor hours and machine hours



c.Direct labor hours and factory expenses



d.Machine hours and factory expenses









Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, andwire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activitybase data by product are provided below.




































































































Activity


Cost








Activity Base





Procurement




$ 370,000




Number of purchase orders





Scheduling




250,000




Number of production orders





Materials handling




500,000




Number of moves





Product development




730,000




Number of engineering changes





Production




1,500,000




Machine hours














?Number



of


Purchase


Orders




Number



of



Production



Orders




?



Number


of


Moves




?



Number of Engineering


Changes




?



?



Machine


Hours




?



Number


of


Units




Disk drives




4,000




300




1,400




10




2,000




2,000




Tape drives




4,000




150




800




10




8,000




4,000




Wire drives




12,000




800




4,000




25




10,000




2,500
















74.Determine the activity rate for procurement per purchase order.



a. $43.53



b. $18.50



c. $15.42



d. $37.00













75.Determine the activity rate per production order for scheduling.



a. $200.00



b. $20.00



c. $29.41



d. $10.42





76.Determine the activity rate for materials handling per move.



a. $58.82



b. $50.00



c. $20.83



d. $80.65





77.Determine the activity rate for product development per change.



a. $73,000



b. $8,588



c. $30,417



d. $16,222









78.Determine the activity rate for production per machine hour.



a. $62.50



b. $150.00



c. $75.00



d. $176.47





79.Determine the activity-based cost for each disk drive unit.



a. $92.25



b. $130.69



c. $394.12



d. $279.57





80.Determine the activity-based cost for each wire drive unit.



a. $204.13



b. $173.51



c. $744.06



d. $394.12









May 15, 2022
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