50 MCQ Practice T T O-X Module Book 15) The following information pertains to Wilson Company for the year: Estimated overhead Estimated machine hours Actual overhead Actual machine hours $320,000 40,000 $337,500 45,000 Using machine hours as the basis, calculate the pre-determined overhead rate. $8/machine hour a) b) c) $7.50/machine hour $7.11/machine hour b) $8.44/machine hour 16) Using the information from Question 15. What is the total applied overhead? a) $360,000 b) $300,000 c) $284,400 b) $379,800 17) Using the information from Question 15. What is the overhead variance? a) $37,500 under-applied b) $22,500 over-applied c) $22,500 under-applied d) $17,500 under-applied 18) Activity-based costing is preferred over normal costing as it is able to provide a more accurate product cost. Normal costing is affected by non-unit related overheads degree of product diversity b) c) (a) and (b) d) None of the above 50 T 19) Honeycomb Company produces two products, a high end laptop computer under the label Bunsen Laptops, and an inexpensive desktop computer under the label Beaker Computers The two products use two overhead activities, with the following costs: Setting up equipment Machining $ 2,000 12,000 The controller has collected the expected annual prime costs for each product, the machine hours, the setup hours, and the expected production. Direct labour Direct materials Units Machine hours Setup hours Bunsen Beaker $20,000 $5,000 15,000 4,000 2,000 2,000 750 1,500 50 50 Calculate the overhead cost per unit for Bunsen Laptops, using a plant-wide rate based on direct labour costs. a) $9.63 per laptop b) $5.60 per laptop c) $7.22 per laptop d) $22.45 per laptop 20) Using the information from Question 19. Calculate the overhead cost per unit for Beaker Laptops, using activity-based costing. a) $2.23 per laptop b) $4.00 per laptop c) $4.50 per laptop d) $2.00 per laptop 21) Using the information from Question 19. Calculate the unit product costs for Beaker Laptops, using activity-based costing. a) $9.00 per laptop b) $11.00 per laptop 6606 $23.50 per laptop d) $11.50 per laptop