Question 1
1. ABC Company listed the following data for 2007. Use this information for questions 1 - 8
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Yearly Budgeted Overhead
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ABC Driver
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Budgeted General Cost Pool
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$150,000.00
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Direct Labor Hours
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Budgeted Machine Cost Pool
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$350,000.00
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Machine Hours
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Total Budgeted Factory Overhead
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$500,000.00
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Product A
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Product B
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Total
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Total Budgeted Direct labor Hours
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42,000
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30,000
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72,000
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Total Budgeted Machine Hours
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13,000
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11,000
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24,000
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Product A
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Product B
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Total
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Actual Direct Labor Hours (January)
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3,500.00
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2,500.00
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6,000.00
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Actual Machine Hours (January)
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1,100.00
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1,000.00
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2,100.00
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1.Assuming the company uses a traditional overhead application method based on direct labor hours, the company's predetermined overhead rate for 07 is calculated to be:
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A.
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$7.34 per direct labor hour.
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B.
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$4.38 per direct labor hour.
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C.
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$7.24 per direct labor hour.
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D.
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$6.94 per direct labor hour.
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7 points
Question 2
- Assuming the company uses a traditional overhead application method based on direct labor hours, $__________ of overhead will be applied to Product A in January.
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A.
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$24,290
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B.
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$25,567
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C.
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$26,290
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D.
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$14,900
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7 points
Question 3
- Assuming the company uses a traditional overhead application method based on direct labor hours, $__________ of overhead will be applied to Product 5 in January.
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A.
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$18,000
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B.
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$17,350
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C.
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$14,250.45
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D.
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$5,678.43
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7 points
Question 4
- Assuming the company uses the ABC overhead application method, the predetermined overhead rate for the General Cost Pool is calculated to be:
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A.
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$2.58 per direct labor hour.
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B.
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$3.08 per direct labor hour.
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C.
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$2.00 per direct labor hour.
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D.
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$2.08 per direct labor hour.
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7 points
Question 5
- Assuming the company uses the ABC overhead application method, the predetermined overhead rate for the Machine Cost Pool is calculated to be:
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A.
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$14.58
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B.
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$14.00
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C.
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$15.50
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D.
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$7.45
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7 points
Question 6
- Assuming the company uses the ABC overhead application method, the General Cost overhead applied to Product A in January would be:
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A.
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$7,280
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B.
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$3,458
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C.
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$45,678
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D.
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$3,457
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7 points
Question 7
- Assuming the company uses the ABC overhead application method, the Machine Cost overhead applied to Product A in January would be:
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A.
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$14,876
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B.
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$16,038
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C.
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$16,124
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D.
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$17,456
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7 points
Question 8
- Assuming the company uses the ABC overhead application method, the total overhead applied to Product A in January would be:
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A.
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$23,567
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B.
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$23145
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C.
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$23,245
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D.
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$23,318
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7 points
Question 9
- Use this information to answers questions 9-12.
You have been provided with a list of budgeted costs and asked to devide them into two different cost pools as part of your accounting process. You use the ABC method and accummulate costs into logical cost pools. The list of costs need to be divided into two cost pools. The first cost pool is a facility cost pool and will be driven by square footage used. The second cost pool is a machinery cost pool driven by machine hours. You have been provided with the following information:
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Machine Repair and Maintenance
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$50,000.00
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Electric Cost to Heat the Facility
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$115,000.00
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Electric Cost to Run Machines
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$75,000.00
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Depreciation of Machinery and Equipment
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$150,000.00
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Depreciation of the Facility
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$250,000.00
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Insurance on the Building
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$25,000.00
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Lubrication Cost for Equipment
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$25,000.00
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Cleaning and Janitorial Services for the Faciltiy
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$10,000.00
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What would be the total budgeted cost of the Facility Cost Pool:
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A.
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$300,000
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B.
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$400,000
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C.
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$325,000
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D.
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$275,000
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6 points
Question 10
- __________________ would likely drive the cost of the Facility Cost Pool best.
6 points
Question 11
- What would be the total budgeted cost of the Machinery and Equipment Cost Pool:
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A.
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$375,000
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B.
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$300,000
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C.
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$450,000
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D.
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$325,000
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6 points
Question 12
- __________________ would likely drive the cost of the Machinery and Equipment Cost Pool best.
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A.
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Direct Labor hours
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B.
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Square footage
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C.
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Machine hours
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D.
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Engineering hours
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6 points
Question 13
- Answer questions 13 - 15 on the following information related to a semi-variable cost that has both variable and fixed costs.
Fixed Cost $100,000
Variable Cost ???????
Semi-Variable Cost $150,000
Activity driver is KW hours used. At the activity above, the KW hours used is 25,000
Based on the above information, the Variable Cost would equal:
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A.
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$150,000
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B.
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$50,000
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C.
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$100,000
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D.
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$40,000
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6 points
Question 14
1. If the KW hours used is 25,000 at the above activity, the variable cost per KW hours is:
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A.
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$200,000
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B.
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$2,000
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C.
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$2
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D.
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$20
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7 points
Question 15
- Predict the Total Cost at an activity of 26,000 KW hours used:
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A.
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$170,000
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B.
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$152,000
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C.
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$153,000
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D.
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$150,000
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