Merone Company allocates materials handling cost to the company's two products using the below data:
Modular Homes Prefab Barns
Total expected units produced 5,900 8,900
Total expected material moves 590 190
Expected direct labor-hours per unit 790 290
The total materials handling cost for the year is expected to be $325,890.
If the materials handling cost is allocated on the basis of material moves, the total materials handling cost allocated to the modular homes is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
$246,507.90
$160,629.00
$213,514.00
$238,382.50
Merone Company allocates materials handling cost to the company's two products using the below data:
Modular Homes Prefab Barns
Total expected units produced 6,000 9,000
Total expected material moves 600 200
Expected direct labor-hours per unit 800 300
The total materials handling cost for the year is expected to be $300,000.
If the materials handling cost is allocated on the basis of direct labor-hours, the total materials handling cost allocated to the prefab barns is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
$105,000.00
200,000.00
$150,204.00
$108,000.00
Spates, Incorporated, manufactures and sells two products: Product H2 and Product E0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours
Product H2 190 6.9 1,311
Product E0 190 5.9 1,121
Total direct labor-hours 2,432
The company’s expected total manufacturing overhead is $270,968.
If the company allocates all of its overhead based on direct labor-hours, the overhead assigned to each unit of Product H2 would be closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
$222.84 per unit
$126.48 per unit
$768.80 per unit
$96.36 per unit
Doles Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.
Activity Cost Pools Activity Rate
Setting up batches $ 70.72 per batch
Processing customer orders $ 27.78 per customer order
Assembling products $ 12.81 per assembly hour
Data concerning two products appear below:
Product K52W Product X94T
Number of batches 66 53
Number of customer orders 46 31
Number of assembly hours 419 162
Required:
How much overhead cost would be assigned to each of the two products using the company's activity-based costing system? (Round your intermediate calculations and final answers to 2 decimal places.)
