1. Juroc Incorporated has identified the following cost drivers for its expected overhead costs for the year: Cost Pools Budgeted Cost Cost Driver Cost Driver Level Setup $ 200,000 Number of setups 1,000 Ordering 100,000 Number of orders 5,000 Maintenance 250,000 Machine hours 25,000 Power 50,000 Kilowatt hours 50,000 Total direct labor hours budgeted = 10,000 hours. The following data applies to Product X, one of the products completed during the year. Direct materials $ 5,000 Direct labor $ 6,000 Units completed 500 Direct labor hours 200 Number of setups 20 Number of orders 40 Machine hours 250 Kilowatt hours 500 If the activity-based cost drivers are used to allocate overhead cost, the total overhead cost of Product X will be: 2. Tremain Company produces and sells two products, Wood and Iron. The following information is available relating to its setup activities: Wood Iron Units produced 240 19,000 Batch size (units) 20 500 Total direct labor hours 2,000 37,000 Cost per setup $ 2,000 $ 2,000 Use of activity-based costing would allocate the following amounts of setup cost to each unit: Note: Rounded to the nearest cent. Wood Iron A) $ 100.00 $ 4.00 B) $ 250.00 $ 775.64 C) $ 4.92 $ 5.00 D) $ 79.00 $ 12.00 E) $ 8.00 $ 0.11
1. Juroc Incorporated has identified the following cost drivers for its expected overhead costs for the year: Cost Pools Budgeted Cost Cost Driver Cost Driver Level Setup $ 200,000 Number of setups 1,000 Ordering 100,000 Number of orders 5,000 Maintenance 250,000 Machine hours 25,000 Power 50,000 Kilowatt hours 50,000 Total direct labor hours budgeted = 10,000 hours. The following data applies to Product X, one of the products completed during the year. Direct materials $ 5,000 Direct labor $ 6,000 Units completed 500 Direct labor hours 200 Number of setups 20 Number of orders 40 Machine hours 250 Kilowatt hours 500 If the activity-based cost drivers are used to allocate overhead cost, the total overhead cost of Product X will be: 2. Tremain Company produces and sells two products, Wood and Iron. The following information is available relating to its setup activities: Wood Iron Units produced 240 19,000 Batch size (units) 20 500 Total direct labor hours 2,000 37,000 Cost per setup $ 2,000 $ 2,000 Use of activity-based costing would allocate the following amounts of setup cost to each unit: Note: Rounded to the nearest cent. Wood Iron A) $ 100.00 $ 4.00 B) $ 250.00 $ 775.64 C) $ 4.92 $ 5.00 D) $ 79.00 $ 12.00 E) $ 8.00 $ 0.11
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 7EA: A company estimates its manufacturing overhead will be $750,000 for the next year. What is the...
Related questions
Question
1. Juroc Incorporated has identified the following cost drivers for its expected overhead costs for the year:
| Cost Pools | Budgeted Cost | Cost Driver | Cost Driver Level |
|---|---|---|---|
| Setup | $ 200,000 | Number of setups | 1,000 |
| Ordering | 100,000 | Number of orders | 5,000 |
| Maintenance | 250,000 | Machine hours | 25,000 |
| Power | 50,000 | Kilowatt hours | 50,000 |
Total direct labor hours budgeted = 10,000 hours.
The following data applies to Product X, one of the products completed during the year.
| Direct materials | $ 5,000 |
|---|---|
| Direct labor | $ 6,000 |
| Units completed | 500 |
| Direct labor hours | 200 |
| Number of setups | 20 |
| Number of orders | 40 |
| Machine hours | 250 |
| Kilowatt hours | 500 |
If the activity-based cost drivers are used to allocate overhead cost, the total overhead cost of Product X will be:
2. Tremain Company produces and sells two products, Wood and Iron. The following information is available relating to its setup activities:
| Wood | Iron | |
|---|---|---|
| Units produced | 240 | 19,000 |
| Batch size (units) | 20 | 500 |
| Total direct labor hours | 2,000 | 37,000 |
| Cost per setup | $ 2,000 | $ 2,000 |
Use of activity-based costing would allocate the following amounts of setup cost to each unit:
Note: Rounded to the nearest cent.
| Wood | Iron | |
|---|---|---|
| A) | $ 100.00 | $ 4.00 |
| B) | $ 250.00 | $ 775.64 |
| C) | $ 4.92 | $ 5.00 |
| D) | $ 79.00 | $ 12.00 |
| E) | $ 8.00 | $ 0.11 |
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