Tarnish Industries produces miniature models of farm equipment. These collectibles are in great demand. It takes two operations, molding and finishin to complete the miniatures. Next year's expected activities are shown in the following table: Direct labor hours Machine hours Multiple Choice Tarnish Industries uses departmental overhead rates and is planning on a $5.30 per direct labor hour overhead rate for the Finishing department Compute the budgeted manufacturing overhead cost for the Finishing department given the information shown in the table. $461,300 Molding 87,000 DIN 110,000 M $914.250 Finishing 172,500 DLH 93,500 MH

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 7E: The management of Nova Industries Inc. manufactures gasoline and diesel engines through two...
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Tarnish Industries produces miniature models of farm equipment. These collectibles are in great demand. It takes two operations, molding and finishing.
to complete the miniatures. Next year's expected activities are shown in the following table:
Direct labor hours
Machine hours
Multiple Choice
Tarnish Industries uses departmental overhead rates and is planning on a $5.30 per direct labor hour overhead rate for the Finishing department.
Compute the budgeted manufacturing overhead cost for the Finishing department given the information shown in the table.
$461,300
$914.250
$583.000
$495,550
Molding
87,000 DLH
110,000 MH
Finishing
172,500 DLH
93,500 MH
Multiple Choice
Zoe Company reports the following for its overhead cost for the year.
Activity
Budgeted Cost
Budgeted Activity Usage
Engineering support
$101,500
Electricity
195,000
70 design changes
3,900 machine hours
400 setups
Setup
260,000
Compute the activity rate for engineering support using activity-based costing.
$1,450 per design change.
$650 per design change.
$800 per design change.
$1,950 per design change.
Transcribed Image Text:kes Tarnish Industries produces miniature models of farm equipment. These collectibles are in great demand. It takes two operations, molding and finishing. to complete the miniatures. Next year's expected activities are shown in the following table: Direct labor hours Machine hours Multiple Choice Tarnish Industries uses departmental overhead rates and is planning on a $5.30 per direct labor hour overhead rate for the Finishing department. Compute the budgeted manufacturing overhead cost for the Finishing department given the information shown in the table. $461,300 $914.250 $583.000 $495,550 Molding 87,000 DLH 110,000 MH Finishing 172,500 DLH 93,500 MH Multiple Choice Zoe Company reports the following for its overhead cost for the year. Activity Budgeted Cost Budgeted Activity Usage Engineering support $101,500 Electricity 195,000 70 design changes 3,900 machine hours 400 setups Setup 260,000 Compute the activity rate for engineering support using activity-based costing. $1,450 per design change. $650 per design change. $800 per design change. $1,950 per design change.
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the
company's three activities are shown in the following table:
Activity
Activity 1
Activity 2
Activity 3
Budgeted Cost Activity Cost Driver
$ 89,000
Square feet
$ 64,000
Units inspected
$ 120,000
Setups
Multiple Choice
$86,280.11
$104,713.55
$79,072.90
Budgeted Activity
Product B
How much overhead will be assigned to Product 8 using activity-based costing? (Do not round intermediate calculations and round the final answer to
2 decimal places.)
$273.000.00
Product A
7,900
8,900
4,400
10,900
16,900
2,900
Jave & EXIT
Product C
21,900
9,900
3,525
Transcribed Image Text:A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activities are shown in the following table: Activity Activity 1 Activity 2 Activity 3 Budgeted Cost Activity Cost Driver $ 89,000 Square feet $ 64,000 Units inspected $ 120,000 Setups Multiple Choice $86,280.11 $104,713.55 $79,072.90 Budgeted Activity Product B How much overhead will be assigned to Product 8 using activity-based costing? (Do not round intermediate calculations and round the final answer to 2 decimal places.) $273.000.00 Product A 7,900 8,900 4,400 10,900 16,900 2,900 Jave & EXIT Product C 21,900 9,900 3,525
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