Question

1)

The Botosan Factory has determined that its budgeted factory overhead budget for the year is $615,420 and budgeted direct labor hours are 473,400. If the actual direct labor hours for the period are 430,800, how much overhead would be allocated to the period? Oa, $576,841 Ob. $560,040 Oc. $476,034 Od. $677,648

2)

3)

4)

5)

Answer 1

Answers

• Question 1
  Correct Answer = Option ‘b’ $ 560,040

A	Estimated overhead	$615,420.00
B	Estimated total DLHs	473,400
C = A/B	Overhead rate per DLHs	$1.30
D	Actual DLHs by small lamp production	430,800
E = C x D	Overhead alloccated	$560,040.00

• Question 2
  Correct Answer = Option ‘d’ $ 64.68
  

Working		Painting
A	Overhead	$241,500
B	DLHs	11200
C = A/B	Overhead rate per DLHs	$21.56
D	DLHs used by 'Product B'	3
E = CxD	Overhead allocated	$64.68

• Question 3

Correct Answer = Option ‘b’ $ 260,610

A	Estimated overhead	$644,000.00
B	Estimated total DLHs	542,000
C = A/B	Overhead rate per DLHs	$1.19
D	Actual DLHs by small lamp production	219,000
E = C x D	Overhead alloccated	$260,610.00

• Question 4

Correct Answer = Option ‘d’ $ 279.57

	Overhead cost	Total drivers	Activity rates	Cost drivers for Disk drives	Overhead allocated
Producrement	$        370,000.00	20000	$                 18.50	4000	$        74,000.00
Scheduling	$        250,000.00	1250	$               200.00	300	$        60,000.00
Material handling	$        500,000.00	6200	$                 80.65	1400	$      112,910.00
Product development	$        730,000.00	45	$         16,222.22	10	$      162,222.20
Production	$    1,500,000.00	20000	$                 75.00	2000	$      150,000.00
Total Overhead allocated					$      559,132.20
Total units of Disk drivers					2000
Overhead cost per unit					$              279.57

• Question 5

Correct answer = Option ‘a’ $ 5.17 per MH

A	Estimated overhead	$268,490.00
B	Estimated total machine hours	51,910
C = A/B	Overhead rate per machine hours	$5.17