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28 Sep 2019
One of Stellar Company's activity cost pools is machine setups,with estimated overhead of $180,000. Stellar produces sparklers(400 setups) and lighters (600 setups). How much of the machinesetup cost pool should be assigned to sparklers?
A) $180,000
B) $72,000
C) $90,000
D) $108,000
21. Bichon Company manufactures two products, Tini A and Tall B.Bichon's overhead costs consist of setting up machines, $1,200,000;machining, $2,700,000; and inspecting, $900,000. Information on thetwo products is: Tini A Tall B
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
Inspections 800 700
Overhead applied to Tini A using traditional costing using directlabor hours is
A) $1,800,000.
B) $2,304,000.
C) $2,505,000.
D) $2,880,000.
22. Bichon Company manufactures two products, Tini A and Tall B.Bichon's overhead costs consist of setting up machines, $1,200,000;machining, $2,700,000; and inspecting, $900,000. Information on thetwo products is: Tini A Tall B
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
Inspections 800 700
Overhead applied to Tall B using traditional costing using directlabor hours is
A) $1,920,000.
B) $2,304,000.
C) $2,505,000.
D) $3,000,000.
23. Bichon Company manufactures two products, Tini A and Tall B.Bichon's overhead costs consist of setting up machines, $1,200,000;machining, $2,700,000; and inspecting, $900,000. Information on thetwo products is: Tini A Tall B
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
Inspections 800 700
Overhead applied to Tini A using activity-based costing is
A) $1,800,000.
B) $2,304,000.
C) $2,496,000.
D) $2,880,000.
24. Bichon Company manufactures two products, Tini A and Tall B.Bichon's overhead costs consist of setting up machines, $1,200,000;machining, $2,700,000; and inspecting, $900,000. Information on thetwo products is: Tini A Tall B
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
Inspections 800 700
Overhead applied to Tall B using activity-based costing is
A) $1,920,000.
B) $2,304,000.
C) $2,496,000.
D) $3,000,000.
25. Simpson Co. produces three products: Earth, Wind, and Fire.Earth requires 80 machine setups, Wind requires 60 setups, and Firerequires 180 setups. Simpson has identified an activity cost poolwith allocated overhead of $480,000 for which the cost driver ismachine setups. How much overhead is assigned to each product?EarthWind Fire
A) $160,000 $160,000 $160,000
B) $100,000 $75,000 $225,000
C) $120,000 $90,000 $270,000
D) $90,000 $160,000 $230,000
26. Tierra Co, incurs $240,000 overhead costs each year in itsthree main departments, setup ($15,000), machining ($165,000), andpacking ($60,000). The setup department performs 40 setups peryear, the machining department works 5,000 hours per year, and thepacking department packs 500 orders per year. Information aboutTierra's two products is as follows: Product A1 Product B1
Number of setups 20 20
Machining hours 1,000 4,000
Orders packed 150 350
Number of products manufactured 600 400
If machining hours are used as a base, how much overhead isassigned to Product A1 each year?
A) $48,000
B) $120,000
C) $82,500
D) $72,000
27. Tierra Co, incurs $240,000 overhead costs each year in itsthree main departments, setup ($15,000), machining ($165,000), andpacking ($60,000). The setup department performs 40 setups peryear, the machining department works 5,000 hours per year, and thepacking department packs 500 orders per year. Information aboutTierra's two products is as follows: Product A1 Product B1
Number of setups 20 20
Machining hours 1,000 4,000
Orders packed 150 350
Number of products manufactured 600 400
Using ABC, how much overhead is assigned to Product A1 eachyear?
A) $120,000
B) $181,500
C) $48,000
D) $58,500
28. Tierra Co, incurs $240,000 overhead costs each year in itsthree main departments, setup ($15,000), machining ($165,000), andpacking ($60,000). The setup department performs 40 setups peryear, the machining department works 5,000 hours per year, and thepacking department packs 500 orders per year. Information aboutTierra's two products is as follows: Product A1 Product B1
Number of setups 20 20
Machining hours 1,000 4,000
Orders packed 150 350
Number of products manufactured 600 400
Using ABC, how much overhead is assigned to Product B1 eachyear?
A) $120,000
B) $96,000
C) $181,500
D) $192,000
One of Stellar Company's activity cost pools is machine setups,with estimated overhead of $180,000. Stellar produces sparklers(400 setups) and lighters (600 setups). How much of the machinesetup cost pool should be assigned to sparklers?
A) $180,000
B) $72,000
C) $90,000
D) $108,000
21. Bichon Company manufactures two products, Tini A and Tall B.Bichon's overhead costs consist of setting up machines, $1,200,000;machining, $2,700,000; and inspecting, $900,000. Information on thetwo products is: Tini A Tall B
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
Inspections 800 700
Overhead applied to Tini A using traditional costing using directlabor hours is
A) $1,800,000.
B) $2,304,000.
C) $2,505,000.
D) $2,880,000.
22. Bichon Company manufactures two products, Tini A and Tall B.Bichon's overhead costs consist of setting up machines, $1,200,000;machining, $2,700,000; and inspecting, $900,000. Information on thetwo products is: Tini A Tall B
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
Inspections 800 700
Overhead applied to Tall B using traditional costing using directlabor hours is
A) $1,920,000.
B) $2,304,000.
C) $2,505,000.
D) $3,000,000.
23. Bichon Company manufactures two products, Tini A and Tall B.Bichon's overhead costs consist of setting up machines, $1,200,000;machining, $2,700,000; and inspecting, $900,000. Information on thetwo products is: Tini A Tall B
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
Inspections 800 700
Overhead applied to Tini A using activity-based costing is
A) $1,800,000.
B) $2,304,000.
C) $2,496,000.
D) $2,880,000.
24. Bichon Company manufactures two products, Tini A and Tall B.Bichon's overhead costs consist of setting up machines, $1,200,000;machining, $2,700,000; and inspecting, $900,000. Information on thetwo products is: Tini A Tall B
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
Inspections 800 700
Overhead applied to Tall B using activity-based costing is
A) $1,920,000.
B) $2,304,000.
C) $2,496,000.
D) $3,000,000.
25. Simpson Co. produces three products: Earth, Wind, and Fire.Earth requires 80 machine setups, Wind requires 60 setups, and Firerequires 180 setups. Simpson has identified an activity cost poolwith allocated overhead of $480,000 for which the cost driver ismachine setups. How much overhead is assigned to each product?EarthWind Fire
A) $160,000 $160,000 $160,000
B) $100,000 $75,000 $225,000
C) $120,000 $90,000 $270,000
D) $90,000 $160,000 $230,000
26. Tierra Co, incurs $240,000 overhead costs each year in itsthree main departments, setup ($15,000), machining ($165,000), andpacking ($60,000). The setup department performs 40 setups peryear, the machining department works 5,000 hours per year, and thepacking department packs 500 orders per year. Information aboutTierra's two products is as follows: Product A1 Product B1
Number of setups 20 20
Machining hours 1,000 4,000
Orders packed 150 350
Number of products manufactured 600 400
If machining hours are used as a base, how much overhead isassigned to Product A1 each year?
A) $48,000
B) $120,000
C) $82,500
D) $72,000
27. Tierra Co, incurs $240,000 overhead costs each year in itsthree main departments, setup ($15,000), machining ($165,000), andpacking ($60,000). The setup department performs 40 setups peryear, the machining department works 5,000 hours per year, and thepacking department packs 500 orders per year. Information aboutTierra's two products is as follows: Product A1 Product B1
Number of setups 20 20
Machining hours 1,000 4,000
Orders packed 150 350
Number of products manufactured 600 400
Using ABC, how much overhead is assigned to Product A1 eachyear?
A) $120,000
B) $181,500
C) $48,000
D) $58,500
28. Tierra Co, incurs $240,000 overhead costs each year in itsthree main departments, setup ($15,000), machining ($165,000), andpacking ($60,000). The setup department performs 40 setups peryear, the machining department works 5,000 hours per year, and thepacking department packs 500 orders per year. Information aboutTierra's two products is as follows: Product A1 Product B1
Number of setups 20 20
Machining hours 1,000 4,000
Orders packed 150 350
Number of products manufactured 600 400
Using ABC, how much overhead is assigned to Product B1 eachyear?
A) $120,000
B) $96,000
C) $181,500
D) $192,000
A) $180,000
B) $72,000
C) $90,000
D) $108,000
21. Bichon Company manufactures two products, Tini A and Tall B.Bichon's overhead costs consist of setting up machines, $1,200,000;machining, $2,700,000; and inspecting, $900,000. Information on thetwo products is: Tini A Tall B
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
Inspections 800 700
Overhead applied to Tini A using traditional costing using directlabor hours is
A) $1,800,000.
B) $2,304,000.
C) $2,505,000.
D) $2,880,000.
22. Bichon Company manufactures two products, Tini A and Tall B.Bichon's overhead costs consist of setting up machines, $1,200,000;machining, $2,700,000; and inspecting, $900,000. Information on thetwo products is: Tini A Tall B
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
Inspections 800 700
Overhead applied to Tall B using traditional costing using directlabor hours is
A) $1,920,000.
B) $2,304,000.
C) $2,505,000.
D) $3,000,000.
23. Bichon Company manufactures two products, Tini A and Tall B.Bichon's overhead costs consist of setting up machines, $1,200,000;machining, $2,700,000; and inspecting, $900,000. Information on thetwo products is: Tini A Tall B
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
Inspections 800 700
Overhead applied to Tini A using activity-based costing is
A) $1,800,000.
B) $2,304,000.
C) $2,496,000.
D) $2,880,000.
24. Bichon Company manufactures two products, Tini A and Tall B.Bichon's overhead costs consist of setting up machines, $1,200,000;machining, $2,700,000; and inspecting, $900,000. Information on thetwo products is: Tini A Tall B
Direct labor hours 15,000 25,000
Machine setups 600 400
Machine hours 24,000 26,000
Inspections 800 700
Overhead applied to Tall B using activity-based costing is
A) $1,920,000.
B) $2,304,000.
C) $2,496,000.
D) $3,000,000.
25. Simpson Co. produces three products: Earth, Wind, and Fire.Earth requires 80 machine setups, Wind requires 60 setups, and Firerequires 180 setups. Simpson has identified an activity cost poolwith allocated overhead of $480,000 for which the cost driver ismachine setups. How much overhead is assigned to each product?EarthWind Fire
A) $160,000 $160,000 $160,000
B) $100,000 $75,000 $225,000
C) $120,000 $90,000 $270,000
D) $90,000 $160,000 $230,000
26. Tierra Co, incurs $240,000 overhead costs each year in itsthree main departments, setup ($15,000), machining ($165,000), andpacking ($60,000). The setup department performs 40 setups peryear, the machining department works 5,000 hours per year, and thepacking department packs 500 orders per year. Information aboutTierra's two products is as follows: Product A1 Product B1
Number of setups 20 20
Machining hours 1,000 4,000
Orders packed 150 350
Number of products manufactured 600 400
If machining hours are used as a base, how much overhead isassigned to Product A1 each year?
A) $48,000
B) $120,000
C) $82,500
D) $72,000
27. Tierra Co, incurs $240,000 overhead costs each year in itsthree main departments, setup ($15,000), machining ($165,000), andpacking ($60,000). The setup department performs 40 setups peryear, the machining department works 5,000 hours per year, and thepacking department packs 500 orders per year. Information aboutTierra's two products is as follows: Product A1 Product B1
Number of setups 20 20
Machining hours 1,000 4,000
Orders packed 150 350
Number of products manufactured 600 400
Using ABC, how much overhead is assigned to Product A1 eachyear?
A) $120,000
B) $181,500
C) $48,000
D) $58,500
28. Tierra Co, incurs $240,000 overhead costs each year in itsthree main departments, setup ($15,000), machining ($165,000), andpacking ($60,000). The setup department performs 40 setups peryear, the machining department works 5,000 hours per year, and thepacking department packs 500 orders per year. Information aboutTierra's two products is as follows: Product A1 Product B1
Number of setups 20 20
Machining hours 1,000 4,000
Orders packed 150 350
Number of products manufactured 600 400
Using ABC, how much overhead is assigned to Product B1 eachyear?
A) $120,000
B) $96,000
C) $181,500
D) $192,000
Lelia LubowitzLv2
28 Sep 2019