80. The Molding Department of Boswell Company has the following production data:

Question

80. The Molding Department of Boswell Company has the following production data: beginning work process 30,000 units (60% complete), started into production 510,000 units, completed and transferred out 480,000 units, and ending work in process 60,000 units (40% complete). Assuming materials are entered at the beginning of the process, equivalent units for materials are:
A) 540,000.
B) 450,000.
C) 480,000.
D) 570,000.

81. Racquet King Corporation manufactures titanium and aluminum tennis racquets. Racquet King's total overhead costs consist of assembly costs and inspection costs. The following information is available: Cost Titanium Aluminum Total Cost
Assembly 500 mach. hours 500 mach. hours $30,000
Inspections 350 150 $50,000
2,100 labor hours 1,900 labor hours


Racquet King is considering switching from one overhead rate based on labor hours to activity-based costing.
Using activity-based costing, how much inspections cost is assigned to titanium racquets?
A) $15,000.
B) $23,750.
C) $25,000.
D) $35,000.

82. AJ Accounting performs two types of services, Audit and Tax. AJ's overhead costs consist of computer support, $200,000; and legal support, $100,000. Information on the two services is: Audit Tax
Direct labor cost $50,000 $100,000
CPU minutes 40,000 10,000
Legal hours used 200 800


Overhead applied to audit services using traditional costing is
A) $100,000.
B) $120,000.
C) $180,000.
D) $200,000.

83. Racquet King Corporation manufactures titanium and aluminum tennis racquets. Racquet King's total overhead costs consist of assembly costs and inspection costs. The following information is available: Cost Titanium Aluminum Total Cost
Assembly 500 mach. hours 500 mach. hours $30,000
Inspections 350 150 $50,000
2,100 labor hours 1,900 labor hours


Racquet King is considering switching from one overhead rate based on labor hours to activity-based costing.
Total overhead costs assigned to titanium racquets, using a single overhead rate, are
A) $40,000.
B) $42,000.
C) $50,000.
D) $56,000.

84. In applying the high-low method, which months are relevant?Month Miles Total Cost
January 80,000 $ 96,000
February 50,000 80,000
March 70,000 94,000
April 90,000 130,000


A) January and February
B) January and April
C) February and April
D) February and March

Explanation / Answer

80. Assuming materials are entered at the beginning of the process, equivalent units for materials are:
         A) 540,000

81. Using activity-based costing, how much inspections cost is assigned to titanium racquets?
       D) $35,000   ($50,000 x 350 / 500)

82. Overhead applied to audit services using traditional costing is
       A) $100,000   [($200,000 + $100,000) x $50,000 / $150,000]

83. Total overhead costs assigned to titanium racquets, using a single overhead rate, are
       B) $42,000 [($50,000 + $30,000) x 2,100 / 4,000]

84. In applying the high-low method, which months are relevant?
        C) February and April

Related Questions

Navigate

• Browse (All)
• Browse 8
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.