13 Bond Company uses a plantwide overhead rate with direct l

13)

Bond Company uses a plantwide overhead rate with direct labor hours as the allocation base. Use the following information to solve for the amount of direct labor hours estimated per unit of product G2.

Multiple Choice

5.08 DLH per unit of G2.

17.85 DLH per unit of G2.

8.60 DLH per unit of G2.

0.52 DLH per unit of G2.

2.00 DLH per unit of G2.

14)

A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:

Annual production and sales level of Product A is 35,700 units, and the annual production and sales level of Product B is 70,950 units. What is the approximate overhead cost per unit of Product A under activity-based costing?

Multiple Choice

$3.68

$10.27

$11.74

$1.60

$2.35

Direct material cost per unit of G2	$	13
Total estimated manufacturing overhead	$	312,000
Total cost per unit of G2	$	28
Total estimated direct labor hours		156,000	DLH
Direct labor cost per unit of G2	$	4.85

Solution

Ans 13 Direct material+direct labor+applied overhead=Total cost $13+4.85+x=28 x=28-13-4.85 10.15 overhead per unit Estimated overhead rate 312000/156000 2.0 Direct labor hours=10.15/2 5.08 Correct option 5.08 DLH per unit of G2. ans 14 Activity Cost Pools Estimated Overhead O Expected Use of C Activity rate A=O/C Product A Cost allocated H*A Cost Drivers Activity 1 $101,000 8,600 $11.74 4,400 $51,674 Activity 2 76,000 12,800 $5.94 5,900 $35,031 Activity 3 121,000 10,550 $11.47 3,900 $44,730 Total overhead allocated T $131,436 No of units N\' 35700 Overhead cost per unit T/N $3.68 Option A $3.68 If satisfied you can rate. If doubt please comment