exam 2 math quetions Flashcards
ABC Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using machine hours.
ABC Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using direct labor dollars.
ABC Inc., manufactures clear and tinted sport glasses. The manufacturing of clear glasses takes 45,000 direct labor hours and involves 1,700 parts and 115 inspections. The manufacturing of tinted glasses takes 115,000 direct labor hours and involves 1,400 parts and 450 inspections. The traditional method applies $560,000 of overhead on the basis of direct labor hours. What is the amount of overhead per direct labor hour applied to the clear glass products?
ABC Co. implemented activity-based costing. Costs in the shipping department have been divided into three cost pools.
The first cost pool contains costs that are related to packaging and shipping. ABC determined that the number of boxes shipped is an appropriate cost driver for these costs.
The second cost pool is made up of costs related to the final inspection of each item before it is shipped. The cost driver for this pool is the number of individual items that are inspected.
The third cost pool is used for the general operations of the department, and the cost driver is the number of orders.
ABC Manufacturing uses activity-based costing. Each product consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information is as follows:
What is the cost of materials handling per product? Enter your response with two decimals but without a comma or $ sign.
A company estimated 100,000 direct labor hours and $800,000 in overhead. The actual overhead was $805,100, and there were 99,900 direct labor hours.
ABC Enterprises has been approached about providing a new service to its clients. The company will bill clients $190 per hour; the related hourly variable costs are $62, and the related fixed operating costs are $13. If all employees are currently working at full capacity on other client matters, the per-hour opportunity cost of being unable to provide this new service is:
If ABC were to discontinue production, fixed manufacturing costs would be reduced by 80%. The relevant cost of deciding whether the division should purchase the product from an outside supplier is:
ABC Company is trying to decide whether to replace an old machine with a new one. The following data were analyzed.
The purchase of a new machine would have what effect on net income?
ABC Corp., which has excess capacity, received a special order for 5,043 units at a price of $16 per unit. Currently, production and sales are anticipated to be 12,000 units without considering the special order. The budget information related to the current year is as follows:
The cost of goods sold includes $36,000 of fixed manufacturing costs. If the special order is accepted, the company’s income will increase by:
multiply to the order units by the CM per unit
Direct material costs $1 per unit, direct labor costs $9 per unit, and overhead is applied at the rate of 100% of the direct labor cost.
What is the value of the inventory transferred to the next department if beginning inventory was 2,000 units; 9,000 units were started; and 1,000 units were in ending inventory?
The initial processing department had a beginning inventory of 758 units and an ending inventory of 1,379 units, and it started 9,500 units into production. How many were transferred out to the next department?
A company calculated the predetermined overhead based on an estimated overhead of $70,000, and the activity for the cost driver was estimated as 2,500 hours. If product A utilized 1,293 hours and product B utilized 1,040 hours, what was the total amount of overhead assigned to the products?
Damon purchased a $140 ticket to a December game of the Jacksonville Jaguars in July. Parking for the game was expected to cost approximately $21, and Damon would probably spend another $11 for food. Is it now December, the Jaguars have had a miserable season, and the weather for the game looks terrible. Damon is thinking of skipping the game and going out to eat with friends. Damon expects the dinner to cost $100. The amount of sunk cost that should influence Damon’s decision to hang out with friends is:
The Shoe Department at the Knights Department Store is being considered for closure. The following information related to shoe department activity:
If 80% of the fixed operating costs are avoidable, should the shoe department be closed?
