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

Hewett,Inc. ,manufactures and sells two products: Product E7 and Product U7.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 $29.50 per DLH.The direct materials cost per unit is $164.10 for Product E7 and $289.50 for Product U7. 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 E7 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:

Vivino,Inc. ,manufactures and sells two products: Product T3 and Product J4.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 $24.80 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.

The controller of Hartis Company estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data that are given below: The total materials handling cost for the year is expected to be $38,448.00. If the materials handling cost is allocated on the basis of material moves,the total materials handling cost allocated to the specialty windows is closest to:

Drucker,Inc. ,manufactures and sells two products: Product F0 and Product M6.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 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 M6 under activity-based costing is closest to:

Managing and sustaining product diversity requires many more overhead resources such as production schedulers and product design engineers.The costs of these resources have no obvious connection with direct labor.

An activity in activity-based costing is an event that causes the consumption of overhead resources.

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: 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 R4 would be closest to:

Meiler,Inc. ,manufactures and sells two products: Product T6 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 $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.

Sampaga,Inc. ,manufactures and sells two products: Product S6 and Product U3.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 $20.90 per DLH.The direct materials cost per unit is $145.30 for Product S6 and $221.50 for Product U3. 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 U3 would be closest to:

Companies use three common approaches to assign overhead costs to products-plantwide overhead rate,departmental overhead rates,and activity-based costing.The most accurate of these three approaches is departmental overhead rates.

Facility-level activities are activities that are carried out regardless of which products are produced,how many batches are run,or how many units are made.

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 overhead applied to each unit of Product N3 under activity-based costing is closest to:

Paolello,Inc. ,manufactures and sells two products: Product P5 and Product N5.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 $24.60 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: 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 P5 would be closest to:

Activities consume resources.In activity-based costing an attempt is made to trace the costs of those activities directly to the products that cause them.

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 C1 under activity-based costing is 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 the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:

Rosman,Inc. ,manufactures and sells two products: Product Q1 and Product G2.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 $23.80 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?

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

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: 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:

Mouret Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Last year,Product N79A required 28 batches,6 customer orders,and 712 assembly hours. Required: How much overhead cost would be assigned to Product N79A using the company's activity-based costing system? Show your work!