The Aleutian Company produces two productsâRings and Dings; theyare manufactured in two departmentsâFabrication and Assembly. Datafor the products and departments are as follows. Rings: 1,000units; 4 labor hours per unit; and 6 machine hours per unit. Dings:2,000 units; 3 labor hours per unit; and 9 machine hours per unit.All of the machine hours take place in the Fabrication Department,which has an estimated total overhead of $90,000. All of the laborhours take place in the Assembly Department, which has an estimatedtotal overhead of $105,000. The Aleutian Company uses departmentaloverhead rates. The Fabrication Department uses machine hours foran allocation base, and the Assembly Department uses labor hours.What is the Assembly Departmentâs overhead rate per labor hour? a$10.50 b $19.50 c $3.75 d $4.38
The Aleutian Company produces two productsâRings and Dings; theyare manufactured in two departmentsâFabrication and Assembly. Datafor the products and departments are as follows. Rings: 1,000units; 4 labor hours per unit; and 6 machine hours per unit. Dings:2,000 units; 3 labor hours per unit; and 9 machine hours per unit.All of the machine hours take place in the Fabrication Department,which has an estimated total overhead of $90,000. All of the laborhours take place in the Assembly Department, which has an estimatedtotal overhead of $105,000. The Aleutian Company uses departmentaloverhead rates. The Fabrication Department uses machine hours foran allocation base, and the Assembly Department uses labor hours.What is the Assembly Departmentâs overhead rate per labor hour? a$10.50 b $19.50 c $3.75 d $4.38
Related questions
The Ramapo Company produces two products, Blinks and Dinks. Theyare manufactured in two departments, Fabrication and Assembly. Datafor the products and departments are listed below.
Product | Number of units | Labor hrsper unit | Machine hours per unit |
Blinks | 1,000 | 4 | 5 |
Dinks | 2,000 | 2 | 8 |
All of the machine hours take place in the Fabricationdepartment, which has an estimated overhead of $84,000. All of thelabor hours take place in the Assembly department, which has anestimated total overhead of $72,000. The Ramapo Company uses asingle overhead rate to apply all overhead costs. What would thesingle plantwide rate be if it was based on machine hours insteadof labor hours?
Answer
$4.00 | ||
$7.43 | ||
$19.50 | ||
$9.00 |
Stewart Marketing Inc. manufactures two products, A andB. Presently, the company uses a single plant-wide factory overheadrate for allocating overhead to products. However, management isconsidering moving to a multiple department rate system forallocating overhead. From the following information, using a singleplant-wide rate, determine the overhead rate per unit for ProductA:
|
|
| ||
A | B | |||
| Painting Dept. | $248,000 | 10,000 dlh | 16 dlh | 4 dlh |
| Finishing Dept. | 72,000 | 10,000 | 4 | 16 |
| Totals | $320,000 | 20,000 dlh | 20 dlh | 20 dlh |
======== | ========== | ====== | ====== | |
| $496.00 per unit |
| $320.00 per unit |
| $144.00 per unit |
| $640.00 per unit |
Stewart Marketing Inc. manufactures two products, A andB. Presently, the company uses a single plant-wide factory overheadrate for allocating overhead to products. However, management isconsidering moving to a multiple department rate system forallocating overhead. From the following information, using a singleplant-wide rate, determine the overhead rate per unit for ProductB:
| Overhead | Direct Labor Hours (dlh) | Product | ||
| A | B | |||
| Painting Dept. | $248,000 | 10,000 dlh | 16 dlh | 4 dlh |
| Finishing Dept. | 72,000 | 10,000 | 4 | 16 |
| Totals | $320,000 | 20,000 dlh | 20 dlh | 20 dlh |
| ======== | ========== | ====== | ====== | |
| $320.00 |
| $496.00 |
| $144.00 |
| $640.00 |
The single plantwide factory overhead rate is $52 perdirect labor hour. The company implements activity-based costingusing four different activity bases, including direct labor hours(and three others). What can be said about the direct labor rateunder activity-based costing relative to the single plantwiderate?
| The direct labor rate under activity-based costing will beequal to $52 per direct labor hour. |
| The direct labor rate under activity-based costing cannot becompared meaningfully to the $52 per direct labor hour rate. |
| The direct labor rate under activity-based costing must be lessthan $52 per direct labor hour. |
| The direct labor rate under activity-based costing must begreater than $52 per direct labor hour. |
The Nite Lite Factory produces two products - smalllamps and desk lamps. It has two separate departments - finishingand production. The overhead budget for the finishing department is$550,000, using 500,000 direct labor hours. The overhead budget forthe production department is $400,000 using 80,000 direct laborhours. If the budget estimates that a desk lamp will require 1hours of finishing and 2 hours of production, how much factoryoverhead will be allocated to each unit of desk lamps using themultiple production department factory overhead rate method with anallocation base of direct labor hours?
| $11.10 |
| $10.00 |
| $4.91 |
| $5.00 |
The Delph Company produces two products, Blinks andDinks. They are manufactured in two departments, Fabrication andassembly. Data for the products and departments are listedbelow.
| Product | Number of units | Labor hrs per unit | Machine hours per unit |
| Blinks | 1,000 | 4 | 5 |
| Dinks | 2,000 | 2 | 8 |
All of the Machine hours take place in the Fabricationdepartment, which has an estimated overhead of $84,000. All of thelabor hours take place in the Assembly department, which has anestimated total overhead of $72,000.
The Delph Company usesa departmental overheadrates. The fabrication department uses machinehours for an allocation base, and the assembly department useslabor hours. What is the overhead cost per unit forDinks?
| $64 |
| $44 |
| $56 |
| $50 |
