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Ma1 > Exam 1 chp 5 more > Flashcards

Exam 1 chp 5 more Flashcards

1
Q

determine cost driver for product design

A

design hours

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2
Q

determine cost driver for sawing

A

machine hours

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3
Q

determine cost driver for sanding

A

direct labour hours

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4
Q

determine cost driver for superviors salary

A

direct labour hours

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5
Q

determine cost driver for depreciation on finishing equipment

A

Machine hours

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6
Q

determine cost driver for administration

A

number for employees

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7
Q

determine cost driver for advertising and marketing

A

sales revenue

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8
Q

determine cost driver for storage

A

square footage of storage used

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9
Q

determine cost driver for shipping

A

number of products shipped

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10
Q

determine cost driver for machine setup

A

setups

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11
Q

determine cost driver for order and receving

A

number of purchase orders

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12
Q

determine cost driver for packaging and shipping

A

number for boxes

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13
Q

determine cost driver for engineering design

A

engineer hours

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14
Q

determine cost driver for machining

A

machine hours

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15
Q

determine cost driver for assembly

A

number of assemblies

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16
Q

determine cost driver for human resources

A

number of employees

17
Q

determine cost driver for security

A

number of square meters

18
Q

determine cost driver for receving

A

number for shipments received

19
Q

determine cost driver for data processing

A

number of employee hours worked on data entry

20
Q

Two of the activity cost pools for Calgary Company are (a) machining ($150,000) and (b) inspections ($80,000). Possible cost drivers are direct labour hours (7,000), machine hours (7,500), square footage (10,000), and number of inspections (80).

Instructions
Calculate the overhead rate for each activity.

A

(a) Machining: —————————— = $20 per machine hour
7,500 machine hours

		$80,000 (b)	Inspections:  ———————- =  $1,000 per inspection
	80 inspections

Ma1 (39 decks)

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