Acme Company uses an activity-based costing system to apply…

Acme Company uses an activity-based costing system to apply manufacturing overhead to jobs. The estimated total annual overhead costs of $550,000 is divided into three cost pools, as follows: Fabrication – The allocation rate is $22 per machine hour based on estimated machine hours of 10,000. Assembly – The allocation rate is $40 per direct labor hour. Finishing – Total costs are $80,000 and the estimated units of the allocation base is 5,000. All of Acme’s machine hours are in Fabrication and all of Acme’s direct labor hours are in Assembly. If Acme used a single overhead rate based on direct labor hours rather than an activity-based costing system, what would be the plantwide overhead rate?

Acme Company produces widgets and applies manufacturing over…

Acme Company produces widgets and applies manufacturing overhead to jobs using a single plantwide rate of $30 per direct labor hour. Acme is switching to an activity-based costing system which divides the company’s total estimated overhead of $900,000 into two cost pools, Fabrication and Final Assembly. The cost driver for Fabrication will be machine hours and the cost driver for Final Assembly will be direct labor hours. Fabrication is machine-intensive and comprises 80% of Acme’s total machine hours, whereas Final Assembly is labor-intensive and comprises 80% of Acme’s total direct labor hours. On a per unit basis, each widget requires 4 direct labor hours and is assigned a total of $84 of overhead from the Final Assembly cost pool. What is the total amount of overhead costs included in the Final Assembly cost pool? 

The scenario (perhaps again, since questions are shuffled):…

The scenario (perhaps again, since questions are shuffled): Joni is upset about her roommate John who expects her to pay half of the recent electric bill.  Joni is pretty upset when she tells John that she thinks he should pay ¾ of the bill.  As they argue, Joni realizes that John really has been covering for her in the past year, and so, Joni and John agree to each pay half of the bill. During the fight Joni also realizes that re-establishing roommie bonds would be good over the next months. With respect to the TRIP goals, how would you best describe Joni’s goal(s)?