Question: ABC Company makes four toys: a car, a boat, a plane and a train. The overhead costs for the period include the following:

Question:ABC Company makes four toys: a car, a boat, a plane and a train. The overhead costs for the period include the following:

Production Manager's Salary$20,100Utilities$2,300Supplies$1,600

ABC Company uses machine hours as the cost driver to allocate indirect costs. Machine hours for the products are as follows:

Cars500Boats800Planes600Trains500

How much indirect cost should be allocated to cars? Round answer to nearest whole dollar.

  $6,000 

  $6,316 

  $4,188 

Correct!

  $5,000 

Question 2

0 / 1 pts

ABC Company makes two products, fig bars & granola bars.  Fig bars are made by Department F and granola bars are made by Department G. ABC Company has provided the following data associated with these two products:

Salary for supervisor of Department F$67,000Salary for supervisor of Department G$57,000Salary for plant manager$32,200Factory utilities$21,000Materials used for fig bars$25,000Materials used for granola bars$43,000Machine hours for Department F310Machine hours for Department G450Number of fig bars produced1,700Number of granola bars produced1,300

If machine hours is used as the cost driver for indirect costs, how much total cost will be allocated to Department F? Round answer to nearest whole dollar.

  $145,200 

Correct Answer

  $113,700 

You Answered

  $118,600 

  $245,200 

Question 3

0 / 1 pts

ABC Manufacturing produces a product that includes four tasks: cutting, drilling, sanding and painting. The production supervisor wants to know the cost of each task for this months production run of 1,000 units. She has identified several costs that must be allocated to these tasks including: $50,000 of depreciation on manufacturing equipment, $40,000 of utilities, $30,000 of rent and $2,000 of supplies. She has chosen to distribute all these costs to the four tasks based on machine hours. Cutting these 1,000 units required 900 hours, drilling them required 300 hours, sanding 800 hours and painting 400 hours. Which one of the following is a weight of base?

  4 

Correct Answer

  900 

  2,400 

You Answered

  1,000 

Question 4

0 / 1 pts

ABC Company makes two products, fig bars & granola bars.  Fig bars are made by Department F and granola bars are made by Department G. ABC Company has provided the following data associated with these two products:

Salary for supervisor of Department F$67,000Salary for supervisor of Department G$57,000Salary for plant manager$32,200Factory utilities$21,000Materials used for fig bars$25,000Materials used for granola bars$43,000Machine hours for Department F310Machine hours for Department G450Number of fig bars produced1,700Number of granola bars produced1,300

If machine hours is used as the cost driver, what is the allocation rate that will be used to attribute a portion of the indirect costs to Department F? Round answer to nearest whole dollar.

  $191 

You Answered

  $172 

  $82 

Correct Answer

  $70 

Unanswered

Question 5

0 / 1 pts

ABC Company makes two products, fig bars & granola bars.  Fig bars are made by Department F and granola bars are made by Department G. ABC Company has provided the following data associated with these two products:

Salary for supervisor of Department F$67,000Salary for supervisor of Department G$57,000Salary for plant manager$32,200Factory utilities$21,000Materials used for fig bars$25,000Materials used for granola bars$43,000Machine hours for Department F310Machine hours for Department G450Number of fig bars produced1,700Number of granola bars produced1,300

If machine hours is used as the cost driver, how much indirect cost will be allocated to Department F? Round answer to nearest whole dollar.

  $59,226 

Correct Answer

  $21,700 

  $138,947 

  $30,147 

Question 6

0 / 1 pts

ABC Company consists of three departments: A, B and C. Which cost driver is the manager of Department A likely to prefer for allocating overhead costs?

ABCMachine Hours2,1003,9005,700Units Produced400,000160,000420,000Square Footage43,00036,00010,000

Correct Answer

  Machine Hours 

You Answered

  All of these drivers would be equally desirable to Department A's manager. 

  Square Footage 

  Units Produced 

Unanswered

Question 7

0 / 1 pts

ABC Company consists of two divisions. Division D and E. Division D is 4,400 square feet and Division E is 4,600 square feet. ABC Company paid rent expense of $99,000 for Year 1. Determine the amount of rent expense that should be allocated to Division D if square footage is used as the cost driver. Round all numbers to the nearest whole dollar.

  $49,500 

  $99,000 

Correct Answer

  $48,400 

  $94,696 

Question 8

1 / 1 pts

The weight of base is used:

  The weight of base is not used to allocate costs. 

  as the denominator of the allocation rate. 

Correct!

  multiplied by the allocation rate. 

  as the numerator of the allocation rate. 

Question 9

1 / 1 pts

ABC Company grows and sells fruit. ABC is organized into three divisions: Apple, Cherry and Peach. Each division grows several varieties:

• Apple: Macintosh, Golden Delicious and Granny Smith
• Cherry: Bing, Hanson and Wax
• Peach: Yellow and White

 Is the salary of the apple orchard manager a direct or indirect cost to the Apple division?

  Indirect 

Correct!

  Direct 

Unanswered

Question 10

0 / 1 pts

ABC Company makes two products, fig bars & granola bars.  Fig bars are made by Department F and granola bars are made by Department G. ABC Company has provided the following data associated with these two products:

Salary for supervisor of Department F$67,000Salary for supervisor of Department G$57,000Salary for plant manager$32,200Factory utilities$21,000Materials used for fig bars$25,000Materials used for granola bars$43,000Machine hours for Department F310Machine hours for Department G450Number of fig bars produced1,700Number of granola bars produced1,300

If machine hours is used as the cost driver to allocate indirect costs, what is the total unit cost of each unit produced by Department F? Round answer to nearest whole dollar.

Correct Answer

  $67 

  $85 

  $144 

  $70