Exam 3: Job-Order Costing: Cost Flows and External Reporting

Cassano,Inc. ,manufactures and sells two products: Product C8 and Product E6.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The direct labor rate is $19.80 per DLH.The direct materials cost per unit is $145.10 for Product C8 and $181.00 for Product E6.The estimated total manufacturing overhead is $671,598. The unit product cost of Product C8 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:

Bolerjack,Inc. ,manufactures and sells two products: Product G9 and Product B6.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The direct labor rate is $16.50 per DLH.The direct materials cost per unit is $204.30 for Product G9 and $284.50 for Product B6. The company is considering adopting an activity-based costing system with the following activity cost pools,activity measures,and expected activity: The unit product cost of Product G9 under activity-based costing is closest to:

Aboud,Inc. ,manufactures and sells two products: Product Q6 and Product Z7.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The direct labor rate is $25.90 per DLH.The direct materials cost per unit for each product is given below: The company has an activity-based costing system with the following activity cost pools,activity measures,and expected activity: The total overhead applied to Product Z7 under activity-based costing is closest to:

Tesh,Inc. ,manufactures and sells two products: Product P9 and Product I9.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The company is considering adopting an activity-based costing system with the following activity cost pools,activity measures,and expected activity: The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:

Hammer,Inc. ,manufactures and sells two products: Product W7 and Product I5.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The direct labor rate is $27.10 per DLH.The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools,activity measures,and expected activity: Required: What is the difference between the unit product costs under the under the traditional costing method and the activity-based costing system for each of the two products?

In activity-based costing,the activity rate for an activity cost pool is computed by dividing the total overhead cost in the activity cost pool by:

Serva,Inc. ,manufactures and sells two products: Product R4 and Product N4.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The direct labor rate is $24.70 per DLH.The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools,activity measures,and expected activity: The overhead applied to each unit of Product N4 under activity-based costing is closest to:

Mcleese,Inc. ,manufactures and sells two products: Product I6 and Product L1.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The direct labor rate is $26.60 per DLH.The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools,activity measures,and expected activity: The overhead applied to each unit of Product L1 under activity-based costing is closest to:

Gribbins,Inc. ,manufactures and sells two products: Product O1 and Product Z4.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The direct labor rate is $23.00 per DLH.The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools,activity measures,and expected activity: Required: What is the difference between the unit product costs under the under the traditional costing method and the activity-based costing system for each of the two products?

Joanette,Inc. ,manufactures and sells two products: Product A0 and Product Q0.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The direct labor rate is $18.90 per DLH.The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools,activity measures,and expected activity: Required: Determine the unit product cost of each product under the activity-based costing method.

Finken,Inc. ,manufactures and sells two products: Product H9 and Product L0.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The direct labor rate is $16.10 per DLH.The direct materials cost per unit is $256.40 for Product H9 and $125.00 for Product L0.The estimated total manufacturing overhead is $441,772. The unit product cost of Product L0 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:

Nakayama,Inc. ,manufactures and sells two products: Product Z1 and Product Q5.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The direct labor rate is $24.20 per DLH.The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools,activity measures,and expected activity: Required: In all computations involving dollars in the following requirements,round off your answer to the nearest whole cent. a.Determine the unit product cost of each product under the company's traditional costing method. b.Determine the unit product cost of each product under the activity-based costing method.

Minon,Inc. ,manufactures and sells two products: Product J1 and Product E7.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The direct labor rate is $19.90 per DLH.The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools,activity measures,and expected activity: If the company allocates all of its overhead based on direct labor-hours using its traditional costing method,the predetermined overhead rate would be closest to:

Randolph,Inc. ,manufactures and sells two products: Product T5 and Product Y7.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The company is considering adopting an activity-based costing system with the following activity cost pools,activity measures,and expected activity: The total overhead applied to Product Y7 under activity-based costing is closest to:

Malan Corporation has provided the following data from its activity-based costing accounting system: Required: Compute the activity rates for each of the three cost pools.Show your work!

Which of the following would be classified as a product-level activity?

Whiteley,Inc. ,manufactures and sells two products: Product M5 and Product P4.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The direct labor rate is $27.50 per DLH.The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools,activity measures,and expected activity: The unit product cost of Product P4 under activity-based costing is closest to:

Brenneis,Inc. ,manufactures and sells two products: Product T9 and Product T2.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The direct labor rate is $18.10 per DLH.The direct materials cost per unit is $115.20 for Product T9 and $221.40 for Product T2. The company is considering adopting an activity-based costing system with the following activity cost pools,activity measures,and expected activity: The overhead applied to each unit of Product T9 under activity-based costing is closest to:

Dameron,Inc. ,manufactures and sells two products: Product J5 and Product E7.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The direct labor rate is $15.90 per DLH.The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools,activity measures,and expected activity: Required: In all computations involving dollars in the following requirements,round off your answer to the nearest whole cent. a.Compute the activity rates under the activity-based costing system. b.Determine how much overhead would be assigned to each product under the activity-based costing system. c.Determine the unit product cost of each product under the activity-based costing method.

Trezise,Inc. ,manufactures and sells two products: Product L7 and Product O3.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The direct labor rate is $15.60 per DLH.The direct materials cost per unit is $257.70 for Product L7 and $288.30 for Product O3. The company has an activity-based costing system with the following activity cost pools,activity measures,and expected activity: Required: In all computations involving dollars in the following requirements,round off your answer to the nearest whole cent. a.Compute the activity rates under the activity-based costing system. b.Determine how much overhead would be assigned to each product under the activity-based costing system. c.Determine the unit product cost of each product under the activity-based costing method.