Pasternik Company produces and sells two products, Alpha and Zeta. The following information is available relating to its setup activities:AlphaUnits producedBatch size (units)Total direct labor hoursCost per setupA)이이이이티B)With a volume-based costing system that applies overhead based on direct labor hours, the setup cost portion of overhead for each unit is(rounded to the nearest cent):C)D)27010E)1,100$2,180AlphaZeta$3.43$13.96$4.43$14.96$9.1922,13054043,120$2,260Zeta$3.43$6.68$4.43$7.68$5.55

A volume based costing system of allocation of costs is the method in which first of all the…

Answered: With a volume-based costing system that…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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When using a normal costing system direct material and direct labor are recorded at standard cost and overhead is treated as a period cost. direct material and direct labor are recorded at actual cost and overhead is treated as a period cost. direct material and direct labor are recorded at standard cost and overhead is applied to products using a predetermined overhead rate. direct material and direct labor are recorded at actual cost and overhead is applied to products using a predetermined overhead rate.
Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor costs to allocate overhead costs.
24: Seat Belt Inc., produces three sizes of seat belts: small, medium, and large. A seat belt pattern is first stenciled onto fabric in the Pattern Department. The stenciled patterns are then sent to the Cut and Sew Department, where the seat belt is cut and sewed together. Seat Belt Inc. uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead costs were budgeted as follows: Overhead Dollars Direct Labor Hours Pattern Department: Cut and Sew Department Overhead: 40,000 dh 60,000 dlb $300,000 $600,000 $900,000 Totals: 100,000 The Company decides to use the Multiple Department Overhead method, and Direct Labor Hours are used to allocate the overhead. We know the following for each type of seatbelt: Small Medium 1.0 dlh 1.5 dlb 2.5 dlh Large 2.0 dlh 3.0 dlb 5.0 dla Pattern Department: Cut and Sew Department: 1.5 dla 2.5 dlh 4.0 dlk Total Per Unit Part I: Calculate the Departmental Factory Overhead Rate for each…
During production, how are the costs in process costing accumulated?A. to cost of goods soldB. to each individual productC. to manufacturing overheadD. to each individual department
In activity-based costing, the activity rate for an activity cost pool is computed by dividing the total overhead cost in the activity cost pool by: Multiple Choice the direct labor-hours required by the product. the machine-hours required by the product. the total activity for the activity cost pool. the total direct labor-hours for the activity cost pool.
Use the cost per equivalent unit to assign costs to the work completed during the period.
When computing the cost per equivalent unit under the wighted-average method of process costing, the cost per equivalent unit for direct material is computed by dividing the total direct-material cost by the total equivalent units. True or False?
Which costing method is likely to provide the most accurate product cost? a. Volume-based costing using direct labor hours to allocate overhead b. Volume-based costing using a plantwide overhead rate c. Normal costing using a plantwide overhead rate d. Activity-based costing
Assuming the use of normal costing, determine the predetermined overhead rates used in the Machining Department and the Assembly Department.
1. Overhead is most often applied to production on the basis ofa. direct labor hours.b. machine hours.c. raw material usage.d. number of units made.e. direct labor costs.
An operations costing system: Multiple Choice O O assigns materials equally to each operation. assigns conversion costs equally to each operation. assigns conversion costs separately to jobs. assigns materials and conversion costs in the same manner.
Using the current traditional system of allocating overhead costs based on a single rate based on labor hours, determine the gross profit per unit for the brass style of faucet.

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With a volume-based costing system that applies overhead based on direct labor hours, the setup cost portion of overhead for each unit is (rounded to the nearest cent):