Question

9.
The following information applies to Questions 9 and 10.

Rupe Company has two departments: Machining and Assembly. The following estimates are for the coming year:

Machining Assembly
Direct labor hours 30,000 40,000

Machine hours 150,000 200,000
Manufacturing Support costs $600,000 $800,000



A single predetermined manufacturing cost driver rate based on total plant direct labor hours is: (Points: 2)
        $ 4 per direct labor hour
        $10 per direct labor hour
        $20 per direct labor hour
        $40 per direct labor hour.


10. A predetermined manufacturing cost driver rate for the Machining Department based on the number of machine hours in that department is: (Points: 2)
        $ 4 per machine hour
        $10 per machine hour
        $20 per machine hour
        $40 per direct labor hour.


11.
The following information applies to Questions 11 and 12.

For 2005, Alex’s Animal Supply Manufacturing uses a normal job order costing system. The accounting records contain the following information:

Estimated manufacturing support (overhead) costs $100,000
Actual manufacturing support (overhead) costs $120,000
Estimated machine hours 20,000
Actual machine hours 25,000.
The only cost driver is machine hours.
Using normal job order costing, the 2005 predetermined manufacturing support cost driver rate is: (Points: 2)
        $4.00 per machine hour
        $4.80 per machine hour
        $5.00 per machine hour
        $6.00 per machine hour


12. Using normal job order costing, the amount of manufacturing support costs allocated to jobs during 2005 is: (Points: 2)
        $150,000
        $125,000
        $120,000
        $100,000


13.
The following information applies to Questions 13 and 14.

Wisconsin Electronics has received an order for 1,000 specially designed TV/VCR combinations. The following standards were compiled for this order:
Direct materials:
Part #123 - $25 per TV/VCR
Part #456 - $50 per TV/VCR
Direct labor:
2.0 hours per TV/VCR at $15 per hour
Manufacturing support:
$40 per direct labor hour

The estimated direct labor cost for this order is: (Points: 2)
        $30,000
        $40,000
        $80,000
        $115,000


14. The estimated manufacturing support cost assigned to this order totals: (Points: 2)
        $30,000
        $40,000
        $80,000
        $115,000