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

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 overhead assigned to each unit of Product J1 would be closest to:

Overmeyer,Inc. ,manufactures and sells two products: Product M8 and Product L9.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 $21.70 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: Required: In all computations involving dollars in the following requirements,round off your answer to the nearest whole cent. a.The company currently uses a traditional costing method in which overhead is applied to products based solely on direct labor-hours.Compute the company's predetermined overhead rate under this costing method. b.How much overhead would be applied to each product under the company's traditional costing method? c.Determine the unit product cost of each product under the company's traditional costing method. d.Compute the activity rates under the activity-based costing system. e.Determine how much overhead would be assigned to each product under the activity-based costing system. f.Determine the unit product cost of each product under the activity-based costing method. g.What is the difference between the overhead per unit under the traditional costing method and the activity-based costing system for each of the two products? h.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?

Crazier,Inc. ,manufactures and sells two products: Product U8 and Product W2.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 $22.10 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 unit product cost of Product U8 is closest to:

Stirman,Inc. ,manufactures and sells two products: Product Z2 and Product F0.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 $28.60 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: Required: Determine the unit product cost of each product under the activity-based costing method.

Boutet,Inc. ,manufactures and sells two products: Product G5 and Product U1.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 $21.10 per DLH.The direct materials cost per unit is $241.40 for Product G5 and $283.80 for Product U1. 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 overhead assigned to each unit of Product G5 would be closest to:

Machuga,Inc. ,manufactures and sells two products: Product C1 and Product M2.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 $18.70 per DLH.The direct materials cost per unit is $297.00 for Product C1 and $246.20 for Product M2. 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 overhead assigned to each unit of Product C1 would be closest to:

Mellencamp,Inc. ,manufactures and sells two products: Product A3 and Product Y6.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 is $146.60 for Product A3 and $256.20 for Product Y6. 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 Y6 under activity-based costing is closest to:

Kamerling,Inc. ,manufactures and sells two products: Product H0 and Product Q8.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 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 overhead applied to each unit of Product H0 under activity-based costing is closest to:

Boahn,Inc. ,manufactures and sells two products: Product B6 and Product W8.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: If the company allocates all of its overhead based on direct labor-hours using its traditional costing method,the overhead assigned to each unit of Product W8 would be closest to:

Onstad,Inc. ,manufactures and sells two products: Product E5 and Product C0.Expected production of Product E5 is 500 units and of Product C0 is 400 units.The company has an activity-based costing system with the following activity cost pools,activity measures,and expected activity: The overhead applied to each unit of Product C0 under activity-based costing is closest to:

In general,activities and costs should be combined in an activity-based costing system only if they fall within the same level in the cost hierarchy.

Frogge,Inc. ,manufactures and sells two products: Product H0 and Product N3.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 $23.60 per DLH.The direct materials cost per unit is $160.60 for Product H0 and $240.30 for Product N3. 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 Production Orders activity cost pool under activity-based costing is closest to:

Masiclat,Inc. ,manufactures and sells two products: Product K2 and Product O8.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 $21.10 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: The unit product cost of Product K2 under activity-based costing is closest to:

Shadow,Inc. ,manufactures and sells two products: Product X9 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 $21.20 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: Determine the unit product cost of each product under the activity-based costing method.

Bohringer,Inc. ,manufactures and sells two products: Product A1 and Product X5.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 $28.20 per DLH.The direct materials cost per unit is $256.50 for Product A1 and $165.20 for Product X5. The company has an activity-based costing system with the following activity cost pools,activity measures,and expected activity: The activity rate for the General Factory activity cost pool under activity-based costing is closest to:

Machuga,Inc. ,manufactures and sells two products: Product C1 and Product M2.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 $18.70 per DLH.The direct materials cost per unit is $297.00 for Product C1 and $246.20 for Product M2. 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 M2 under activity-based costing is closest to:

In activity-based costing,unit product costs computed for external financial reports include direct materials,direct labor,and only a part of manufacturing overhead costs.

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: Which of the following statements concerning the unit product cost of Product T9 is true?

Betenbaugh,Inc. ,manufactures and sells two products: Product E4 and Product L8.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 $29.00 per DLH.The direct materials cost per unit is $223.90 for Product E4 and $122.30 for Product L8. 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 L8 under activity-based costing is closest to:

Angara Corporation uses activity-based costing to determine product costs for external financial reports.The company has provided the following data concerning its activity-based costing system: Assuming that actual activity turns out to be the same as expected activity,the total amount of overhead cost allocated to Product X would be closest to: