Wanger, Inc., manufactures and sells two products: Product G1 and Product F2. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-HoursProduct G1800 9.0 7,200 Product F2800 11.0 8,800 Total direct labor-hours 16,000 The direct labor rate is $15.30 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per UnitProduct G1$100.50 Product F2$292.00 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:Activity Cost PoolsActivity MeasuresEstimated Overhead
CostExpected Activity???Product G1Product F2TotalLabor-relatedDLHs$732,480 7,2008,80016,000Machine setupssetups 53,809 400300700Order sizeMHs 600,525 3,8003,7007,500 $1,386,814 If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to:
A. $86.68 per DLH
B. $76.87 per DLH
C. $80.07 per DLH
D. $45.78 per DLH
Answer: A
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Answer the following statements true (T) or false (F)
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Victoria is a budget analyst at Young Industries. She used the least squares regression method to separate the plant's monthly utilities cost into its fixed and variable components. The results were as follows: Y = 3,250 + .054 X X = the number of units produced R2 = .892 Based on these results, the December budget for plant utilities cost if Young Industries plans to produce 200,00 . units in
that month would be: a. $10,800 b. $14,050 c. $ 3,250 d. $10,920
Which of the following is used to measure the difference between a customer's expectations of service quality and what actually occurred?
A) break-even analysis B) SERVQUAL C) the critical incident technique D) gap analysis E) SWOT analysis
Some assets, such as a nuclear power plant, are not readily salable at the end of their useful lives, and retiring them may impose substantial costs. Which of the following is/are true?
a. Firms must estimate the fair value of the dismantling costs and include that amount in the initial measurement of the asset. b. Firms recognize a liability, referred to as an asset retirement obligation at the estimated fair value of the dismantling costs. c. Firms compute depreciation based on the combined cost of the plant assets, including the fair value of the dismantling obligations. d. all of the above e. none of the above