Extracts from cost information of Hebar Corp.: Simple L3 ...

[Medesa]

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 Pack	Complex L7 Pack	Total ​
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

[smrtceo]

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[Medesa]

Thanks for the timely response, appreciate it

[billybob123]

Excellent