Solved > 11) In 2012, Alan’s Seafood Supply Manufacturing uses:1852901 …

11) In 2012, Alan’s Seafood Supply Manufacturing uses machine-hours as the only overhead cost-allocation base. The accountant reported the following information:


Manufacturing overhead costs$225,000$250,000


Using job costing, compute the 2012 actual indirect cost rate.

A) $3.85 per machine hour

B) $3.95 per machine hour

C) $4.45 per machine hour

D) $4.54 per machine hour

E) $4.85 per machine hour

12) The Operations Manager at Mary’s Pastry Shoppe requested a machine shop to build a special pastry machine to add extra jellies and sprinkles on their pastries. Mary estimated that the actual annual indirect-costs to make pastries in the new machine are $6,000 and the actual annual quantity of the cost-allocation base is 2,000. Compute the actual indirect-cost rate.

A) $1

B) $2

C) $3

D) $4

E) $5

13) The Meredith Company reported the following information.


Compute the Variable Indirect Cost Rate per Direct Professional Labor-Hour.

A) $2.00; $.80

B) $14.70; $1.11

C) $147; $111

D) $53,400; $1,111

E) $60,000; 1,111.11

14) The Meredith Company reported the following information:


Compute the Fixed Indirect Cost rate per Direct Professional-Labor Hour.

A) $2.58; $.70.

B) $20.58; $77.77

C) $200.58; $79.77

D) $2,000.58; $777.77

E) $2,058.00; $779.77

15) The Meredith Company reported the following information:

Required: Compute the Total Allocation Rate per Direct Professional Labor-Hour.

A) $3.52; $8.88

B) -$35.29; $88.88

C) $352.90; 888.88

D) $3,529.90; $8,888.88

E) $35,299.90; $88,888.88

16) The Frame Shoppe reported that fixed costs remain constant at $450,000 per month. During high-output months variable costs are $315,000, and during the low-output months variable costs are $60,000. What are the high and low indirect-cost rates if budgeted professional labor-hours are 15,000 for high-output months and 1,857 for low-output months?


Compute the budgeted indirect cost rate for the high-output month and the low-output month.

A) $51 per hour ;$201 per hour

B) $60 per hour;$206 per hour

C) $80 per hour;$210 per hour

D) $85 per hour;$215 per hour

E) $90 per hour;$220 per hour

17) Which of the following describes how managers compute the actual indirect-cost rate?

A) Add actual total indirect costs in the pool to the actual total quantity of the cost-allocation base.

B) Divide actual total indirect costs in the pool by the actual total quantity of the cost-allocation base.

C) Multiply actual indirect costs in the pool by the actual total quantity of the cost-allocation base

D) Subtract actual direct costs in the pool from the actual total quality of the cost-allocation base

E) Subtract actual indirect costs in the pool from the actual quantity of the cost-allocation base

18) Explain why the time-frame is important to managers that implement decisions about indirect-cost rates.

The denominator reason (quantity of the cost-allocation base) is the second reason why managers should consider the time frame associated with their decision to compute indirect-cost rates. Managers must avoid spreading the monthly fixed indirect costs over fluctuating levels of monthly output and fluctuation quantities of the cost-allocation base. is an online academic writing platform that provides extensive assistance to graduate school students as they work through their research projects, papers and dissertations. gives students access to experienced professionals who can provide the help they need in a timely and efficient manner. The service offers a wide range of services, including editing, proofreading, formatting, researching and more that can give students the confidence they need to write the perfect paper or dissertation for their chosen subject matter.

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