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A Company Employs 25 Full-Time Staff

Question 58
Multiple Choice

A company employs 25 full-time staff.The company spent $75,000 in advertising in the year (this amount is a period cost with a constant amount spent each year).Budgeted indirect manufacturing costs total $250,000 and the direct labour rate is $15 per hour.Budgeted labour hours were 500,000, and actual labour hours were 524,000.Actual indirect overhead was $274,600.What are the actual and normal indirect-cost rates respectively? A)$0.52 and $0.50 B)$0.50 and $0.52 C)$0.55 and $0.48 D)$0.67 and $0.65 E)$0.65 and $0.67

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Q 59
Budgeted fixed indirect costs remain constant at $150,000 per month.During high-output months variable indirect costs are budgeted at $120,000, and during low-output months budgeted variable costs are $60,000.What are the respective high and low indirect cost rates if budgeted professional labour-hours are 6,000 for high-output months and 2,000 for low-output months? A)$31.25 per hour, $87.50 per hour B)$45.00 per hour, $95.00 per hour C)$45.00 per hour, $105.00 per hour D)$56.20 per hour, $105.00 per hour E)$59.00 per hour, $105.00 per hour
Q 60
Fixed costs remain constant at $200,000 per month.During high-output months variable costs are $160,000, and during low-output months variable costs are $40,000.What are the respective high and low indirect cost allocation rates if professional labour-hours are 8,000 for high-output months and 2,000 for low-output months? A)$45.00 per hour; $120.00 per hour B)$45.00 per hour; $45.00 per hour C)$25.00 per hour; $20.00 per hour D)$56.20 per hour; $120.00 per hour E)$25.00 per hour; $100.00 per hour
Q 61
What is the overhead applied to jobs if the law office uses normal costing? A)$225,000 B)$350,000 C)$291,667 D)$270,000 E)$420,000
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