Acton Corporation, which applies manufacturing
Acton Corporation, which applies manufacturing overhead on the basis of machinehours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead $202,600 Estimated machinehours 2,000 Actual manufacturing overhead $194,600 Actual machinehours 1,930 The estimates of the manufacturing overhead and of machinehours were made at the beginning of the year for the purpose of computing the company’s predetermined overhead rate for the year.The overhead for the year was:$7,091 overapplied$909 overapplied$909 underapplied$7,091 underappliedDagger Corporation uses direct laborhours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $437,950. At the end of the year, actual direct laborhours for the year were 22,000 hours, manufacturing overhead for the year was underapplied by $23,500, and the actual manufacturing overhead was $428,200. The predetermined overhead rate for the year must have been closest to:$18.84 per direct laborhour$18.40 per direct laborhour$19.46 per direct laborhour$19.91 per direct laborhour Acton Corporation, which applies manufacturing overhead on the basis of machinehours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead $361,260 Estimated machinehours 2,700 Actual manufacturing overhead $354,700 Actual machinehours 2,660 The estimates of the manufacturing overhead and of machinehours were made at the beginning of the year for the purpose of computing the company’s predetermined overhead rate for the year.The applied manufacturing overhead for the year is closest to:$355,190$354,547$353,829$355,908The Work in Process inventory account of a manufacturing Corporation shows a balance of $4,137 at the end of anaccounting period. The job cost sheets of the two uncompleted jobs show charges of $700 and $280 for materials, and charges of $560 and $980 for direct labor. From this information, it appears that the Corporation is using a predetermined overhead rate, as a percentage of direct labor costs, of:95%220%105%280% Cerrone Inc. has provided the following data for the month of July. The balance in the Finished Goods inventory account at the beginning of the month was $74,000 and at the end of the month was $67,500. The cost of goods manufactured for the month was $339,000. The actual manufacturing overhead cost incurred was $111,000 and themanufacturing overhead cost applied to jobs was $105,000. The adjusted cost of goods sold that would appear on the income statement for July is:$351,500$339,000$345,000$333,000The Lee Corporation uses a joborder costing system. The following data were recorded for June: June 1 Added During June Job Number Work in Process Inventory Direct Materials Direct Labor 235 $3,050 $820 $565 236 $2,110 $1,180 $1,345 237 $1,495 $1,640 $2,410 238 $1,075 $2,270 $3,130 Overhead is charged to production at 80% of direct materials cost. Jobs 235, 237, and 238 were completed during June and transferred to finished goods. Jobs 235 and 238 have been delivered to customers. Actual manufacturing overhead was equal to manufacturing overhead applied. There were no Work in Process or Finished Goods inventories at the beginning of June.Lee’s Work in Process inventory balance on June 30 was:$4,635$5,579$4,635$11,089 Darrow Company uses a predetermined overhead rate based on direct laborhours to apply manufacturing overheadto jobs. Last year,the company worked 8,000 direct laborhours and incurred $108,000 of actual manufacturing overhead cost. If overhead was underapplied by $1,920, the predetermined overhead rate for the company for the year must have been:$13.74$13.26$13.98$13.50Crombie Inc. uses a joborder costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month. The company has provided the following data for June: Direct materials $ 46,500 Direct labor cost 76,500 Manufacturing overhead cost incurred $ 69,750 Manufacturing overhead cost applied $ 74,560 Inventories: Beginning Ending Work in process $17,500 $27,840 Finished goods $69,080 $35,700 The unadjusted cost of goods sold (in other words, cost of goods sold before adjusting for any underapplied or overapplied overhead) for June is closest to:$187,220$215,790$220,600$197,560 Acton Corporation, which applies manufacturing overhead on the basis of machinehours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead $73,440 Estimated machinehours 1,800 Actual manufacturing overhead $68,700 Actual machinehours 1,710 The estimates of the manufacturing overhead and of machinehours were made at the beginning of the year for the purpose of computing the company’s predetermined overhead rate for the year.The predetermined overhead rate is closest to:$40.18$39.99$40.80$40.61Hibshman Corporation bases its predetermined overhead rate on the estimated machinehours for the upcoming year. At the beginning of the most recently completed year, the company estimated the machinehours for the upcoming year at 20,000 machinehours. The estimated variable manufacturing overhead was $8.71 per machinehour and the estimated total fixed manufacturing overhead was $250,500. The predetermined overhead rate for the recently completed year was closest to:$9 per machinehour$13 per machinehour$21 per machinehour $13 per machinehour Activity rates from Mcelderry Corporation’s activitybased costing system are listed below. The company uses the activity rates to assign overhead costs to products: Activity Cost Pool Activity Rate Processing customer orders $93.89 per customer order Assembling products $1.98 per assembly hour Setting up batches $52.78 per batch Last year, Product Q06J involved 3 customer orders, 477 assembly hours, and 24 batches. How much overhead cost would be assigned to Product Q06J using the activitybased costing system?$1,266.72$639.54$67,401.69$2,492.85Studler Corporation has an activitybased costing system with three activity cost pools—Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment expense $ 125,500 Indirect labor $ 8,000 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Processing Equipment expenseIndirect labor Supervising Other 0.60 0.20 $ 0.20 0.10 0.50 0.40 Processing costs are assigned to products using machinehours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company’s two products follow: Activity:MHs (Processing) Batches (Supervising) Product Y4 3,000 200 Product R6 17,000 3,800 Total 20,00 0 4,000 The activity rate for the Supervising activity cost pool under activitybased costing is closest to: $2.00 per batch$32.65 per batch$7.28 per batch$2.13 per batchHochberg Corporation uses an activitybased costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 50,000 machinehours Order processing 625 orders Other Not applicable The Other activity cost pool is used to accumulate costs of idle capacity and organizationsustaining costs.The company has provided the following data concerning its costs: Wages and salaries $ 425,000 Depreciation 133,000 Occupancy 170,000 Total $ 728,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Fabricating Order Processing Other Total Wages and salaries 5% 65% 30% 100% Depreciation 25% 20% 55% 100% Occupancy 5% 65% 30% 100% The activity rate for the Fabrication activity cost pool is closest to:$1.83 per machinehour$3.64 per machinehour$0.23 per machinehour$1.26 per machinehourMussenden Corporation has an activitybased costing system with three activity cost pools—Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the firststage allocations follow: Overhead costs:Equipment depreciationSupervisory expense Distribution of Resource Consumption Across Activity Cost Pools: MachiningOrder Filling Equipment depreciationSupervisory expense Machining costs are assigned to products using machinehours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activitydata for the company’s two products follow: Activity: MHs (Machining) Product P4 9,360 Product S4 16,640 Total 26,000 How much overhead cost is allocated to the Order Filling activity cost pool under activitybased costing? $16,832$27,020$588$17,420Forse Florist specializes in large floral bouquets for hotels and other commercial spaces. The company has provided the following data concerning its annual overhead costs and its activity based costing system: Overhead costs:Wages and salariesOther expensesTotal Distribution of resource consumption: Wages and salariesOther expenses The “Other” activity cost pool consists of the costs of idle capacity and organizationsustaining costs.The amount of activity for the year is as follows: Activity Cost Pool Activity Making bouquets 41,410 bouquets Delivery 13,700 deliveries What would be the total overhead cost per delivery according to the activity based costing system? In other words, what would be the overall activity rate for the deliveries activity cost pool? (Round your final answer to 2 decimal places) $3.79$2.51$5.08$4.22
