Question 1

What is the Assembly Department overhead rate per labor hour?

Accepted Answer

A) $10.50 
B) $19.50 
C) $3.75 
D) $4.38 
A) $10.50 
B) $19.50 
C) $3.75 
D) $4.38

Question 2

Managers depend on accurate factory overhead allocation to make decisions regarding product mix and product price.

Accepted Answer

A) True 
 B)False

Question 3

Using multiple department factory overhead rates instead of a single plantwide factory overhead rate:

Accepted Answer

A) results in more accurate product costs 
B) results in distorted product costs 
C) is simpler and less expensive to compute than a plantwide rate 
D) applies overhead costs to all departments equally 
A) results in more accurate product costs 
B) results in distorted product costs 
C) is simpler and less expensive to compute than a plantwide rate 
D) applies overhead costs to all departments equally

Question 4

If selling and administrative expenses are allocated to different products, they should be reported as a

Accepted Answer

A) cost of goods manufactured 
B) factory overhead cost 
C) period cost 
D) cost of goods sold 
A) cost of goods manufactured 
B) factory overhead cost 
C) period cost 
D) cost of goods sold

Question 5

Given the following information, determine the activity rate for setups.

Accepted Answer

A) $58.00 
B) $18.00 
C) $0.75 
D) $5.09 
A) $58.00 
B) $18.00 
C) $0.75 
D) $5.09

Question 6

Calculate the total factory overhead to be charged to each unit of Hooks.

Accepted Answer

A) $33 
B) $50 
C) $11 
D) $61 
A) $33 
B) $50 
C) $11 
D) $61

Question 7

Calculate the total factory overhead to be charged to Nooks.

Accepted Answer

A) $300,000 
B) $400,000 
C) $488,000 
D) $600,000 
A) $300,000 
B) $400,000 
C) $488,000 
D) $600,000

Question 8

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 machine hours 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:

Accepted Answer

A) $8.13 per machine hour 
B) $7.00 per machine hour 
C) $6.50 per machine hour 
D) $8.75 per machine hour 
A) $8.13 per machine hour 
B) $7.00 per machine hour 
C) $6.50 per machine hour 
D) $8.75 per machine hour

Question 9

The Ramapo Company uses a single overhead rate to apply all overhead costs based on labor hours.What is the overhead cost per unit for Blinks?

Accepted Answer

A) $78.00 
B) $19.50 
C) $37.45 
D) $56.00 
A) $78.00 
B) $19.50 
C) $37.45 
D) $56.00

Question 10

Kettle Factory produces two similar products-gloves and mittens.The total plant budget is $1,050,000 with 600,000 estimated direct labor hours.It is further estimated that glove production will require 375,000 direct labor hours and mitten production will require 225,000 direct labor hours.
a Determine the single plant factory overhead rate based on direct labor hours.
b How much is the factory overhead cost per pair of gloves if each pair requires 2 hours to produce?
c How much is the factory overhead cost per pair of mittens if each pair takes
1.5 hours to produce?
d How much total factory overhead will be allocated to glove production if 187,500 pairs are budgeted and 190,000 pairs are actually produced during the period?
e How much total factory overhead will be allocated to mitten production if 150,000 pairs are budgeted and 140,000 pairs are actually produced during the period?

Accepted Answer

a $1,050,000/600,000 = $1.75 p

What is the Assembly Department overhead rate per labor hour?

Managers depend on accurate factory overhead allocation to make decisions regarding product mix and product price.

Using multiple department factory overhead rates instead of a single plantwide factory overhead rate:

If selling and administrative expenses are allocated to different products, they should be reported as a

Given the following information, determine the activity rate for setups.

Calculate the total factory overhead to be charged to each unit of Hooks.

Calculate the total factory overhead to be charged to Nooks.

The Ramapo Company uses a single overhead rate to apply all overhead costs based on labor hours.What is the overhead cost per unit for Blinks?

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Lean Principles, Lean Accounting, and Activity Analysis

Statement of Cash Flows

Financial Statement Analysis

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Exam 11: Cost Allocation and Activity-Based Costing

What is the Assembly Department overhead rate per labor hour?

Managers depend on accurate factory overhead allocation to make decisions regarding product mix and product price.

Using multiple department factory overhead rates instead of a single plantwide factory overhead rate:

If selling and administrative expenses are allocated to different products, they should be reported as a

Given the following information, determine the activity rate for setups.

Calculate the total factory overhead to be charged to each unit of Hooks.

Calculate the total factory overhead to be charged to Nooks.

The Ramapo Company uses a single overhead rate to apply all overhead costs based on labor hours.What is the overhead cost per unit for Blinks?

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Lean Principles, Lean Accounting, and Activity Analysis

Statement of Cash Flows

Financial Statement Analysis

Filters