direct labor hours? much is the overhcad application rate if Barr bases the rate
ID: 2549611 • Letter: D
Question
direct labor hours? much is the overhcad application rate if Barr bases the rate on aHow per hour b. $15.00 per hour c. $14.50 per hour d. $15.54 per hour 18. Kinney Company applies overhead on the basis of 150% of direct labor cost. Job No. 176 is charged with $150,000 of direct materials costs and $180,000 of manufacturing overhead. The total manufacturing costs for Job No. 176 is a. $330,000. b. $600,000. c. $450,000. d. $405,000 19 The wages of a security guard in the factory would be classified as a. a period cost. b. direct labor. c. indirect labor d. compliance costs 20. Activity-based costing a. allocates overhead to activity cost pools, and it then assigns the activity cost pools to products b. accumulates overhead in one cost pool, then assigns the overhead to products and services by c. assigns activity cost pools to products and services, then allocates overhead back to the d. allocates overhead directly to products and services based on activity levels. and services by means of cost drivers. means of a cost driver. activity cost pools. 1. An "Ordering and Receiving Materials" cost pool would most likely have as a cost driver a. machine hours b. number of setups. c. number of purchase orders. d. number of inspection tests.Explanation / Answer
18. c. $450,000
Direct materials $150,000 + Direct Labor $120,000 ($180,000/150%) + manufacturing overhead $180,000
19. c. Indirect Labor
This is because a security guard is not directly involved in the factory or manufacture of the products.
20. a. Allocates overhead to activity-cost pools, and it then assigns the activity cost pools to products and services by means of cost drivers.
21. c. number of purchase orders
This is because the number of purchase orders is the cost driver for the purchases (ordering and receiving inward materials) cost pool.
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