MA1 - #27 Flashlight, Inc. makes two types of flashlights and is implementing an activity-based costing system. Previously, all overhead had been applied on the basis of machine hours. The company produces 11,250 units of the Deluxe model and 21,142 units of the Compact model. Additional data is as follows: Cost Pool Cost Driver and Estimated Estimated Level of Activity Equipment Setup 100 setups Use of Cost Driver by Use of Cost Driver Deluxe by Compact 35 setups Overhead Cost $20,000 65 setups Materials 140 orders $21,000 95 orders 45 orders Ordering Quality Control 200 inspections $22,000 150 inspections Mixing 9,000 machine hours $18,000 5,000 machine hours 50 inspections 4,000 machine hours Total Overhead Cost $81,000 What is the total overhead cost applied to Compact when all overhead is applied based on machine hours? $617 $45,000 $2,864 ○ $36,000 MA1 - #28 Flashlight, Inc. makes two types of flashlights and is implementing an activity-based costing system. Previously, all overhead had been applied on the basis of machine hours. The company produces 11,250 units of the Deluxe model and 21,142 units of the Compact model. Additional data is as follows: Use of Driver by Use of Cost Driver Deluxe by Compact Cost Driver and Estimated Cost Pool Level of Activity Equipment 100 setups Estimated Overhead Cost $20,000 65 setups 35 setups Setup Materials 140 orders $21,000 95 orders 45 orders Ordering Quality Control 200 inspections $22,000 150 inspections 50 inspections Machining 9,000 machine hours $18,000 5,000 machine 4,000 machine hours hours Total Overhead Cost $81,000 What is the overhead cost per unit for Deluxe when all overhead is applied based on machine hours? $7.20 ○ $18.00 ○ $4.00 $27.20 MA1 - #29 Flashlight, Inc. makes two types of flashlights and is implementing an activity-based costing system. Previously, all overhead had been applied on the basis of machine hours. The company produces 11,250 units of the Deluxe model and 21,142 units of the Compact model. Additional data is as follows: Use of Driver by Use of Cost Driver Deluxe by Compact Cost Pool Cost Driver and Estimated Level of Activity Estimated Overhead Cost Equipment 100 setups $20,000 65 setups 35 setups Setup Materials 140 orders $21,000 95 orders 45 orders Ordering Quality Control Machining 200 inspections $22,000 150 inspections 50 inspections 9,000 machine hours $18,000 5,000 machine 4,000 machine hours hours Total Overhead Cost $81,000 Using activity-based costing, what is the cost per order for the Materials Ordering activity? $462 $110 O $150 $200 MA1 - #30 Flashlight, Inc. makes two types of flashlights and is implementing an activity-based costing system. Previously, all overhead had been applied on the basis of machine hours. The company produces 11,250 units of the Deluxe model and 21,142 units of the Compact model. Additional data is as follows: Use of Driver by Use of Cost Driver Deluxe by Compact Cost Pool Cost Driver and Estimated Level of Activity Estimated Overhead Cost Equipment Setup 100 setups $20,000 65 setups 35 setups Materials 140 orders $21,000 95 orders 45 orders Ordering Quality Control 200 inspections $22,000 150 inspections 50 inspections Machining 9,000 machine hours $18,000 5,000 machine 4,000 machine hours hours Total Overhead Cost $81,000 What is the total overhead cost applied to Deluxe using activity-based costing? ○ $53,750 $57,564 ○ $23,945 $76,271 MA1 - #31 Diablo, Inc. uses the department approach for allocating overhead. The Assembly Department uses direct labor hours as its allocation base and the Finishing Department uses machine hours as its allocation base. The data for each is as follows: Estimated Cost Pool Allocation base Assembly Department Finishing Department $2,400,000 $900,000 300,000 direct labor hours 15,000 machine hours What is the allocation rate for each Department (round to the nearest cent)? Assembly = $11.00 per direct labor hour, Finishing = $220.00 per machine hour. Assembly = $8.00 per direct labor hour; Finishing = $60.00 per machine hour. Assembly = $0.13 per direct labor hour; Finishing = $0.02 per machine hour. ○ Assembly = $10.48 per direct labor hour, Finishing = $10.48 per machine hour. MA1 - #37 Metro, Inc. has two production departments (Sanding and Painting) and three service departments (Maintenance, Computer Support, and Purchasing). Service department costs are allocated to production departments using the direct method. The $400,000 costs for Maintenance are allocated based on the square footage in each production department. The $800,000 costs for Computer Support are allocated based on hours of technology support used by each production department. The $240,000 for Purchasing is allocated on the pounds of raw materials purchased for each production department. Information for each production department is as follows: Square Footage Sanding 4,000 Painting 12,000 Total 16,000 Technology Support Hours Pounds of Raw Materials 500 3,000 2,000 7,000 2,500 10,000 Using the direct method of allocating service department costs to production departments, how much of the Maintenance service department costs should be allocated to the Sanding Department? ○ $140,000 $100,000 $300,000 $80,000 MA1 - #38 Metro, Inc. has two production departments (Sanding and Painting) and three service departments (Maintenance, Computer Support, and Purchasing). Service department costs are allocated to production departments using the direct method. The $400,000 costs for Maintenance are allocated based on the square footage in each production department. The $800,000 costs for Computer Support are allocated based on hours of technology support used by each production department. The $240,000 for Purchasing is allocated on the pounds of raw materials purchased for each production department. Information for each production department is as follows: Square Footage Sanding Painting 4,000 12,000 Total 16,000 Technology Support Hours Pounds of Raw Materials 500 3,000 2,000 7,000 2,500 10,000 Using the direct method of allocating service department costs to production departments, how much of the Maintenance service department costs should be allocated to the Painting Department? ○ $140,000 $100,000 $300,000 ○ $320,000 MA1 - #41 The Mixing Department at Aspen, Inc. had 102,000 units in beginning inventory. During the period, the department started 480,000 units. Ending inventory consisted of 36,000 units. How many units were transferred out? 718,000 582,000 ○ 546,000 ○ 564,000 MA1 - #42 Assume Sanchez Corporation uses the weighted average process costing method. The Packaging Department had 17,000 units in beginning inventory. These units contained $176,000 in direct materials, $160,000 in direct labor, and $120,000 in overhead. During the period, the department incurred costs of $600,000 in direct materials, $800,000 in direct labor and $400,000 in overhead and started 80,000 units. Ending inventory consisted of 6,000 units which were 100% complete with respect to direct materials and 50% complete with respect to direct labor and overhead. What is the cost per equivalent unit for direct materials (rounded to the nearest cent)? $8.24 ○ $8.00 ○ $7.52 ○ $8.52 MA1 - #43 Randall Company had 24,000 units in WIP Inventory at March 1 that were 70% complete with respect to direct labor and overhead. During March, 80,000 units were completed. On March 31, the 28,000 units in WIP Inventory were 30% complete as to direct labor and overhead. Direct materials are added at the beginning of the process. How many units were started during March? 64,000 84,000 O 132,000 ○ 76,000