28 Refer to the Figure above What is the unit product cost f

28 Refer to the Figure above. What is the unit product cost for rug cleaners if a plantwide rate is used based on direct labor hours?

A $2.00 B $4.65 C $1.59 D $2.65

29 Refer to the Figure above. Manoli Company uses departmental overhead rates: Molding uses machine hours and Assembly uses labor hours. What is the unit product cost for sweepers if departmental overhead rates are used?

A $3.65 B $4.35 C $1.33 D $3.00

30 Refer to the Figure above. What are the consumption ratios for rug cleaners and sweepers respectively for the inspection of products activity?

A 0.44; 0.56 B 0.45; 0.55 C 0.53; 0.47 D 0.28; 0.72

31 Refer to the Figure above. What is the consumption ratio for the plantwide activity rate of direct labor hours?

A 0.72; 0.28 B 0.28; 0.72 C 0.44; 0.56 D 0.45; 0.55

32 Refer to the Figure above. What are the consumption ratios for rug cleaners for the departments on the basis of the departmental drivers (molding; assembly)?

A 0.727; 0.071 B 0.071; 0.929 C 0.727; 0.273 D 0.273; 0.929

33 Refer to the Figure above. What is the activity rate for moving materials?

A $666.67 B $500.00 C $342.86 D $571.43

34 Refer to the Figure above. What is the unit product cost for rug cleaners using activity based costing?

A $5.37 B $3.18 C $3.37 D $1.68

Please help me, thanks so much! I do appraciate!

The Manoli Company has collected the following data for use in calculating product costs Activity Data: (expected and actual) Rug cleaners Sweepers Total units produced prime costs direct labor hours machine hours number of setups inspection hours number of moves Departmental Data: (expected and actual) 180,000 600,000 42,000 14,000 20 800 45 240,000 $720,000 58,000 25,000 75 1,700 105 60,000 $120,000 16,000 11,000 900 60 Molding Assembly Total direct labor hours rug cleaners Sweepers Total 5,000 11,000 16,000 3,000 39,000 42,000 8,000 50,000 58,000 machine hours rug cleaners Sweepers Total 8,000 3,000 11,000 12,000 2,000 14,000 20,000 5,000 25,000 overhead costs Machining moving materials setting up inspecting products 60,000 30,000 $20,000 $10,000 $80,000 30,000 $40,000 $12,000 140,000 $60,000 $60,000 $22,000 Page 5 of 14 BUS 509 MID-TERM: CHAPTERS 1-7 Total $120,000 S162,000 5282,000

Solution

Since, there are multiple parts to the question, I have answered the first six (from Question 28 to Question 33).

_____

Question 28:

The unit product cost for rug cleaners if a plantwide rate is used based on direct labor hours is calculated as below:

Plantwide Rate = Total Overheads/Total Direct Labor Hours = 282,000/58,000 = $4.86 per direct labor hour

Now, we can calculate unit product cost as follows:

Unit Product Cost for Rug Cleaners = (Plantwide Rate*Number of Direct Labor Hours (Departmental Data) + Prime Costs for Rug Cleaners)/Units Produced = (4.86*8,000 + 120,000)/60,000 = $2.65 (which is Option D)

_____

Question 29:

The departmental rates are calculated as below:

Molding = Total Overheads for Molding/Total Machine Hours = 120,000/11,000 = $10.91 per machine hour

Assembly = Total Overheads for Assembly/Total Direct Labor Hours = 162,000/42,000 = $3.86 per direct labor hour

Now, we can calculate the unit product cost for sweepers as follows:

Unit Product Cost for Sweepers = (Number of Machine Hours For Molding*Departmental Rate for Molding + Number of Direct Labor Hours for Assembly*Departmental Rate for Assembly + Prime Costs for Sweepers)/Units Produced = (3,000*10.91 + 39,000*3.86 + 600,000)/180,000 = $4.35 (which is Option B)

_____

Question 30:

The consumption ratios for rug cleaners and sweepers are calculated as below:

Consumption Ratio (Rug Cleaners) = Inspection Hours for Rug Cleaners/Total Inspection Hours = 900/1,700 = 0.53

Consumption Ratio (Sweepers) = Inspection Hours for Rug Cleaners/Total Inspection Hours = 800/1,700 = 0.47

Answer is Option C (0.53; 0.47)

_____

Question 31:

The consumption ratio for the plantwide activity rate of direct labor hours is determined as below:

Consumption Ratio for Plantwide Activity Rate of Direct Labor Hours (Rug Cleaners) = Total Direct Labor Hours for Rug Cleaners (Activity Data)/Total Direct Labor Hours = 16,000/58,000 = 0.28

Consumption Ratio for Plantwide Activity Rate of Direct Labor Hours (Sweepers) = Total Direct Labor Hours for Sweepers (Activity Data)/Total Direct Labor Hours = 42,000/58,000 = 0.72

Answer is Option B (0.28; 0.72)

_____

Question 32:

The consumption ratios for rug cleaners for the departments on the basis of the departmental drivers (molding; assembly) are arrived as below:

Molding (Machine Hours) = Machine Hours for Rug Cleaners/Total Machine Hours for Molding = 8,000/11,000 = 0.727

Assembly (Direct Labor Hours) = Direct Labor Hours for Rug Cleaners/Total Direct Labor Hours for Assembly = 3,000/42,000 = 0.071  

Answer is Option A (0.727; 0.071)

_____

Question 33:

The activity rate for moving materials is calculated as follows:

Activity Rate for Moving Materials = Moving Materials Overhead Costs/Total Number of Moves = 60,000/105 = $571.43 (which is Option D)