The following information was drawn from the accounting records of marlin manufacturing co.

Product 1Product 2Product 3Direct Material Cost$ 25,000$ 30,000$ 35,000Direct Labor Cost$ 30,000$ 40,000$ 50,000Direct Labor Hours1,200 hours1,800 hours2,000 hoursFactory overhead is estimated to be $30,000 and is applied on a basis of direct labor dollars. Thisoverhead cost is not traceable to any particular product. Factory overhead allocated to Product 2is$10,000Allocation Base = $30,000 + $40,000 + $50,000 = $120,000 Total Direct Labor CostAllocation Rate = $30,000 Overhead Cost / $120,000 Total Direct Labor Cost = $0.25Per Direct Labor DollarAllocation Amount = $0.25 x $40,000 Direct Labor Dollars in Product 2 = $10,000 to beAllocated to Product 2The following information was drawn from the accounting records of Marlin ManufacturingCo.Product 1Product 2Product 3Direct Material Cost$ 25,000$ 30,000$ 35,000Direct Labor Cost$ 30,000$ 40,000$ 50,000Direct Labor Hours1,200 hours1,800 hours2,000 hoursFactory overhead is estimated to be $30,000 and is applied on a basis of direct labor dollars. Thisoverhead cost is not traceable to any particular product. The total cost of Product 1 is$62,500Allocation Base = $30,000 + $40,000 + $50,000 = $120,000 Total Direct Labor CostAllocation Rate = $30,000 Overhead Cost / $120,000 Total Direct Labor Cost = $0.25 Per DirectLabor DollarMaterials$25,000Labor30,000Overhead ($30,000 Labor Dollars x $0.25 allocationRate)7,500Total Cost of Product 1$62,500

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the following information was drawn from the accounting records of marlin manufacturing co. product 1 product 2 product 3 $65,000 $70,000 $75,000 direct material cost $110,000 $120,000 $130,000 direct labor cost direct labor hours 2,800 hours 3,400 hours 3,600 hours factory overhead is estimated to be $234,000 and is applied on a basis of direct labor dollars. this overhead cost is not traceable to any particular product. factory overhead allocated to product 2 is. a. $9,600b. $71,500c. $78,000d. $78,800

The following information was extracted from the accounting records of Roosevelt Manufacturing Company: $$\begin{array}{lr} \text { Direct materials purchased } & 80,000 \\ \text { Direct materials used } & 76,000 \\ \text { Direct manufacturing labor costs } & 10,000 \\ \text { Indirect manufacturing labor costs } & 12,000 \\ \text { Sales salaries } & 14,000 \\ \text { 0ther plant expenses } & 22,000 \\ \text { Selling and administrative expenses } & 20,000 \end{array}$$ What was the cost of goods manufactured? 1. $\$ 124,000$ 2. $\$ 120,000$ 3. $\$ 154,000$ 4. $\$ 170,000$

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he following information was drawn from the accounting records of Marlin Manufacturing Co. Product 1 Product 2 Product 3 Direct Material Cost $ 25,000 $ 30,000 $ 35,000 Direct Labor Cost $ 30,000 $ 40,000 $ 50,000 Direct Labor Hours 1,200 hours 1,800 hours 2,000 hours Factory overhead is estimated to be $30,000 and is applied on a basis of direct labor dollars. This overhead cost is not traceable to any particular product. The total cost of Product 1 is $ 7,500 $62,500 $64,400 $69,200 Product 1 Product 2 Product 3 Direct Material Cost $ 25,000 $ 30,000 $ 35,000 Direct Labor Cost $ 30,000 $ 4 ...
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the amount of the cost to be allocated is $82,000.

In this case the "cost to be allocated" is the total of the indirect costs. Specifically, $42,000 + $4,000 + $36,000 = $82,000. The object of concern is the cost of operating each department. Accordingly, the departments (not the students) are the cost objects. The number of students is the best available cost driver. The size of the student body drives the need for administrative staff (indirect salaries), the use of supplies, and the size of the rental space needed. Accordingly, the number of students (not the indirect cost) is the allocation base.

Direct Material Cost $ 25,000 $ 30,000 $ 35,000
Direct Labor Cost $ 30,000 $ 40,000 $ 50,000
Direct Labor Hours 1,200 hours 1,800 hours 2,000 hours

Factory overhead is estimated to be $30,000 and is applied on a basis of direct labor dollars. This overhead cost is not traceable to any particular product. Factory overhead allocated to Product 2 is

he following information was drawn from the accounting records of Marlin Manufacturing Co.

Product 1
Product 2
Product 3
Direct Material Cost
$ 25,000
$ 30,000
$ 35,000
Direct Labor Cost
$ 30,000
$ 40,000
$ 50,000
Direct Labor Hours
1,200 hours
1,800 hours
2,000 hours

Factory overhead is estimated to be $30,000 and is applied on a basis of direct labor dollars. This overhead cost is not traceable to any particular product. The total cost of Product 1 is

62,500

Allocation Base = $30,000 + $40,000 + $50,000 = $120,000 Total Direct Labor Cost
Allocation Rate = $30,000 Overhead Cost / $120,000 Total Direct Labor Cost = $0.25 Per Direct Labor Dollar

Materials
$
25,000
Labor

30,000
Overhead ($30,000 Labor Dollars x $0.25 allocation Rate)

7,500

Total Cost of Product 1 $ 62,500

Saylind Molding paid $280,000 in rent for the year. The company's three departments are Headrests, Armrests, and Floor Mats. The accountant has identified two possible cost drivers. The number of employees in each department and the square footage of space occupied by each department. The number of employees working in each department includes 60 in the Headrest Department, 30 in the Armrest Department and 110 in Floor Mats Department. The departments occupy 5,000, 6,300, and 2,700 square feet, for Headrests, Armrests, and Floor Mats respectively. How much of the rent cost should be allocated to the products made in the Floor Mats department?