Homework answers / question archive /   When calculating the total amount of manufacturing overhead to allocate to a particular job, the company would multiply each departmental overhead rate by ____ and then ____ together the allocated amounts from each department (a) the actual amount of the plantwide allocation based used by the job; add (b) the actual amount of the departmental allocation base used by the job; multiply (c) the actual amount of the departmental allocation cased used by the job; add (d) the actual amount of the plantwide allocation base used by the job; multiply When overhead is allocated to every product using the same manufacturing overhead rate, this rate is called the departmental overhead rate TRUE FALSE James Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs

  When calculating the total amount of manufacturing overhead to allocate to a particular job, the company would multiply each departmental overhead rate by ____ and then ____ together the allocated amounts from each department (a) the actual amount of the plantwide allocation based used by the job; add (b) the actual amount of the departmental allocation base used by the job; multiply (c) the actual amount of the departmental allocation cased used by the job; add (d) the actual amount of the plantwide allocation base used by the job; multiply When overhead is allocated to every product using the same manufacturing overhead rate, this rate is called the departmental overhead rate TRUE FALSE James Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs

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1. When calculating the total amount of manufacturing overhead to allocate to a particular job, the company would multiply each departmental overhead rate by ____ and then ____ together the allocated amounts from each department
   (a) the actual amount of the plantwide allocation based used by the job; add
   (b) the actual amount of the departmental allocation base used by the job; multiply
   (c) the actual amount of the departmental allocation cased used by the job; add
   (d) the actual amount of the plantwide allocation base used by the job; multiply
2. When overhead is allocated to every product using the same manufacturing overhead rate, this rate is called the departmental overhead rate
   TRUE
   FALSE
3. James Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $35 per machine hour and the sanding department uses a departmental overhead rate of $20 per direct labor hour. Job 603 used the following direct labor and machine hours in the two departments...
   Assembly Sanding
   Department Department
   direct labor 8 5
   machine 10 7
   
   The cost for direct labor is $30 per direct labor hour and the cost of the direct materials used by job 603 is $1,400.
   
   How much manufacturing overhead would be allocated to Job 603 using the departmental overhead rates?
   (a) $715
   (b) $390
   (c) $380
   (d) $450
4. Using departmental overhead rates is generally less accurate than using a single plantwide overhead rate.
   
   TRUE
   FALSE
5. The plantwide overhead cost allocation rate is computed by dividing the estimated total manufacturing overhead costs by the estimated total quantity of the cost allocation base
   TRUE
   FALSE
6. It is easier to allocated indirect costs to the products that actually caused those costs if an ABC system is used rather than a traditional costing system
   TRUE
   FALSE
7. Two main benefits of ABD are (1) more accurate product cost information and (2) more detailed information on the costs of activities and the drivers of those costs
   TRUE
   FALSE
8. Machine set-up would most likely be classified as a ____ cost
   (a) facility level
   (b) unit level
   (c) product level
   (d) batch level
9. As compared to traditional volume-based costing using a single plantwide overhead rate, activity-based costing (ABC) is a more refined costing system that reduces cost distortion
   TRUE
   FALSE
10. Kramer company manufacturer coffee tables and uses an activity costing system to allocate all manufacturing conversion costs. Each coffee table consists of 20 separate parts totaling $240 in direct materials, and requires 5 hours of machine time to produce.
    
    Materials handling (#of parts) $2 per part
    Machining (machine hrs) $2.75 per machine hour
    Assembling (# of parts) $1 per part
    Packaging (# of finished units) $3 per finished unit
    
    What is the cost of assembling per coffee table?
    (a) $15
    (b) $7.75
    (c) $20
    (d) $40