Answer The Following Quiz Questions :

The controller forJack's Rabbits, lnc., estimates that the company's fixed overhead is $150,000 per year. He also has determined that the variable overhead is approximately $0.20 per rabbit raised and sold. Since the company has a single product, overhead is applied on the basis of output units, or in other words, rabbits raised and sold. What is the predetermined overhead rate per rabbit if the output estimate or prediction is 150,000 rabbits? Metalica Company applies overhead based on machine hours. At the beginning of 20x1, the company estimated that manufacturing overhead would be $450,000, and machine hours would total 30,000. By 20x1 year~end, actual overhead totaled $420,000, and actual machine hours were 25,000. On the basis of this information, the 20x1 predetermined overhead rate was: $18 per machine hour. $16.8 per machine hour. $28 per machine hour. $14 per machine hour. 65) $15 per machine hour. Osgood Company, which applies overhead at the rate of 'l 70% ofdirect material cost, began work on job no.101 duringjune. The job was completed in July and sold during August, having accumulated direct material and labor charges of $32,000 and $19,000, respectively. On the basis of this information, the total overhead applied to job no. 101 amounted to: $83,300. 0 $54,400. $86,700. $32,300. Which of the following is least likely to be classified as a facility-level activity in an activity-based costing system? (A) Plant maintenance. Plant management salaries. The following information pertains to the three product lines for next year: Economy Units to be produced 11,200 Orders to be shipped 1,120 Number of parts per unit 10 Machine hours per unit 2 Labor hours per unit 3 Under Barnett's activity-based costing system, what is the per-unit overhead cost of Deluxe? (9 None of the answers is correct. $267. Standard 6,200 620 15 Deluxe 3,200 320 25 Question 6 Barnett Products manufactures three types of remote~control devices: Economy, Standard, and Deluxe. The company, which uses activityvbased costing, has identied five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below. Activity Cost Material handling $ 285,000 Material insertion 2,850,000 Automated machinery 1,328,000 Finishing 247,200 Packaging 247,200 Total $ 4,957,400 The following information pertains to the three product lines for next year: Cost Driver Number of parts Number of parts Machine hours Direct labor hours Orders shipped \fAs soon as products are completed, their product costs are transferred from Raw Materials Inventory to Finished-Goods Inventory. Many traditional costing systems: trace manufacturing overhead to individual activities and require the development of numerous activity-costing rates. combine widely varying elements of overhead into a single cost pool. use a host of different cost drivers (e.g., number of production setups, inspection hours, orders processed) to improve the accuracy of product costing. produce results far superior to those achieved with activity-based costing