Cost Flows and Cost Terminology 72. Bass Boss Manufacturing Company manufactures

Question

Cost Flows and Cost Terminology 72. Bass Boss Manufacturing Company manufactures two types of bass boats. Bass Boss provides the following data, pertinent to allocating its annual overhead cost of $435,000: Boss Hog 15,000 3.0 Boss Bear 20,000 5.0 Bass Boss Product Units per year Machine hours/unit $1,500 $2,000 Materials cost/unit Labor cost/unit 800 $1,000 What is the amount of manufacturing overhead allocated to Boss Bear? A. $435,000 B. $217,500 C. $100,000 D. $300,000 E. $135,000 LOS-D (20,000 x 5) x $3 73. Which of the following costs are added to work-in-process during the period? Raw materials. Labor Administrative costs Both A and B E. A, B, and C LO4-D tion rate is $4; the cost object is boats; and the number of boats is the cost driver. The is $40. There are 4 red boats and 6 blue boats produced. How much cost is allocated to red 74. The allocat cost pool boats? A. $16 B. $4 C. $40 D. $20 L05-Post-test-A 75. Harms Shoe Company applies manufacturing overhead based on the number of units as the cost driver. Information concerning costs for July follows: Direct labor costs Manufacturing overhead Direct materials 800 hours @$14 $8,000 $45,000 3-13

Explanation / Answer

72) total machine hours Hog 15000*3 45,000 Bear 20000*5 100,000 145,000 overhead rate = 435,000/145000 3 amount of overhead allocated to Boss bear machine hr * overhead rate 100,000*3 300,000 answer ) option d $300,000 74) overhead rate = $40/(4+6) $4 per boat hence cost allocated to red boat 4boats * $4 per boat $16 option ) A

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---