12. Hartley Company produces two products, Flower and Planter. Flower is a high-
ID: 2564636 • Letter: 1
Question
12. Hartley Company produces two products, Flower and Planter. Flower is a high-volume item totaling 20000 units annually. Planter is a low-volume iterm totaling only 6000 units per year. Flower requires 1 hour or are 2000 completion, while each unit of Planter requires 2 hours. Therefore, total annual direct labor hours are 32000 12000). Expected annual manufacturing overhead costs are $960000. Hartey uses a traditional costing system and assigns overhead based on direct labor hours. Each unit of Planter would be assigned overhead or a. need more information to compute. b. $60. C. $30. d. $36.92 13. Reynoso Corporation manufactures titanium and aluminum tennis racquets. Reynoso's total overhead costs consist of assembly costs and inspection costs. The following information is avaiab Cost Assembly Inspections Iotal Cost 60000 $100000 Titanium 500 mach. hours500 mach. hours 150 1900 labor hours 350 2100 labor hours overhead rate based on labor hours t activity-based costing. is considering switching from one Using activity-based costing, how much assembly cost is assigned to titanlum racquets? a. $42000. b. $21000. c $30000. d $31500. 14. An example of an activity cost pool is a. number of setups. b. setting up machines. c. number of inspections d. machine hours 15. One of Matheny Company's activity cost pools is inspecting, with estimated overhead of $200000. Matheny throw rugs (700 inspections) and area rugs (1300 inspections). How much of the inspecting cost pool should assigned to throw rugs? . $200000. Page 4Explanation / Answer
12 Flower Planter Total Direct labor hours 20000 12000 32000 Manufacturing overheads assigned 600000 360000 960000 (960000*20000/32000) (960000*12000/32000) Number of units 20000 12000 Cost per unit 30 30 Cost per unit for planter is $30 Correct answer is C 13 Assembly cost to titanium 30000 (60000*500/1000) Correct answer is C 14 Setting up machine Correct answer is B 15 Inspecting cost to throw rugs 70000 (200000*700/2000) Correct answer is 70,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.