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Author Question: Extracts from cost information of Hebar Corp.: Simple L3 PackComplex L7 PackTotal Setup cost ... (Read 81 times)

Medesa

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on: Mar 6, 2021

Question 1

Dalrymple Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $68,750. The budgeted number of nozzles to be inserted is 11,000. What is the budgeted indirect cost allocation rate for this activity?
◦ $0.16
◦ $0.32
◦ $1.16
◦ $6.25

Question 2

Extracts from cost information of Hebar Corp.:

​Simple L3 PackComplex L7 PackTotal
​
Setup cost allocated using direct labor-hours$19,250$5,750$25,000
Setup cost allocated using setup-hours$13,400$11,600$25,000

Assuming that setup-hours is considered a more effective cost drive for allocating setup costs than direct labor-hours. Which of the following statements is true of Hebar's setup costs under traditional costing?
◦ L3 pack is undercosted by $5,850
◦ L7 pack is undercosted by $5,750
◦ L3 pack is overcosted by $5,850
◦ L7 pack is overcosted by $5,850
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by Medesa on Mar 6, 2021

smrtceo

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Medesa

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it

mochi09

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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