Sunflower, Inc. uses activity-based costing. The company produces two products, A and B. Information relating to the two products is as follows:
Units produced
A 19,000
B 25,000
Machine-hours
A 7,500
B 8,500
Direct labor-hours
A 8,000
B 12,000
Materials handling (number of moves)
A 4,000
B 6,000
Setups
A 5,000
B 7,000
The following costs are reported:
Materials handling
$160,000
Labor-related overhead
480,000
Setups
300,000
Setup costs assigned to B are:
a) $140,000
b) $112,000:
c) $175,000
d) $144,000 The following information is available pertaining to Ian Division that uses a plantwide overhead rate based on machine hours:
Mixing Dept.
Finishing Dept.
Total
Overhead
MD $30,000
FD $73,500
Total $103,500
Direct labor-hours
MD 4,000
FD 1,250
Total 5,250
Machine-hours
MD 1,500
FD 3,000
Total 4,500
Production information pertaining to Job 302:
Mixing Dept.
Finishing Dept.
Total
Prime costs
MD $5,000
FD $ 0
Total $5,000
Direct Labor-hours
MD 125
FD 0
Total 125
Machine-hours
MD 5
FD 4
Total 9
Units produced
MD 250
FD 0
Total 250
What are the total overhead costs assigned to Job 302?
a) $240
b) $207
c) $360
d) $180 Deca Electronics Company produces two products, Resistors and Transistors in a small manufacturing plant which had total manufacturing overhead of $21,000 in June and used 300 direct labor hours. The factory has two departments, Design, which incurred $10,000 of manufacturing overhead, and Production which incurred $11,000 of manufacturing overhead. Design used 200 hours of direct labor and Production used 80 machine hours.
During June, 150 direct labor hours were used in making 100 units of Resistors, and 150 direct labor hours were used in making 100 units of Transmitters.
If Deca Electronics Company uses a plantwide rate based on direct labor hours to assign manufacturing costs to products, the total manufacturing overhead assigned to each unit of Resistors and Transistors in June were:
a) $105 for Resistors and $105 for Transistors
b) $225 for Resistors and $225 for Transistors
c) $250 for Resistors and $200 for Transistors
d) $107.14 for Resistors, and $42.86 for Transistors Deca Electronics Company produces two products, Resistors and Transistors in a small manufacturing plant which had total manufacturing overhead of $21,000 in June and used 300 direct labor hours. The factory has two departments, Design, which incurred $10,000 of manufacturing overhead, and Production which incurred $11,000 of manufacturing overhead. Design used 200 hours of direct labor and Production used 80 machine hours.
During June, 150 direct labor hours were used in making 100 units of Resistors, and 150 direct labor hours were used in making 100 units of Transmitters.
If Deca Electronics Company uses a plantwide rate based on direct labor hours to assign manufacturing costs to products, the total manufacturing overhead assigned to each unit of Resistors and Transistors in June were:
a) $ 50 per direct labor hour for both Design and Production
b) $ 62.50 per direct labor hour for Design, and $125 per machine hour for Production
c) $125 per direct labor hour for Design, and $62.50 per machine hour for Production
d) $ 50 per direct labor hour for Design, and $137.50 per machine hour for Production