Hails Corporation manufactures two products: Product Q21F and Product H44W. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Q21F and H44W.Activity Cost PoolActivity MeasureTotal CostTotal ActivityMachiningMachine-hours$195,00013,000MHsMachine setupsNumber of setups$90,000150setupsProduct designNumber of products$64,0002products??Order sizeDirect labor-hours$280,00010,000DLHsActivity MeasureProduct Q21FProduct H44WMachine-hours9,0004,000Number of setups8070Number of products11Direct labor-hours6,0004,000Using the plantwide overhead rate,
the percentage of the total overhead cost that is allocated to Product H44W is closest to:
A. 50.00%
B. 21.30%
C. 17.81%
D. 40.00%
Answer: D
You might also like to view...
As a manager, Corbin must inform his staff that all employees must now contribute more to their health insurance premiums. What advice should Corbin follow when delivering his message?
A) Avoid telling the employees the reason for the decision. B) Use a threatening tone so that employees know that this is a serious matter. C) Be honest and provide the important reasons for the increase in individual contributions. D) Tell the employees to "Suck it up" and deal with the increased individual costs.
In most states, arson includes the burning of one's own property to collect insurance proceeds
Indicate whether the statement is true or false
[The following information applies to the questions displayed below.]On January 1, Year 1, Hanover Corporation issued bonds with a $70,500 face value, a stated rate of interest of 8%, and a 5-year term to maturity. The bonds were issued at 97. Hanover uses the straight-line method to amortize bond discounts and premiums. Interest is payable in cash on December 31 each year.How much interest expense will Hanover report on its income statement on December 31, Year 1?
A. $5,640 B. $423 C. $6,063 D. $2,115
A tenant always has an implied duty to make repairs to the premises
Indicate whether the statement is true or false