Overhead cost drivers: determination and use of unit cost

during june, assembly department no. 4 of hot tech produced 15,000 model 201 computer keyboards. assembly of these
units required 1,875 hours of direct labor at a cost of $45,000. direct materials costing 5121.000, and 400 hours of machine
time. based on an analysis of overhead costs at the beginning of the year, overhead is applied to keyboards using the
following formula:

overhead = 120% of dlrect labor cost + $350 per machlne hour

3. compute the total amount of overhead cost applied to the 15.000 keyboards.

b. compute the per-unit cost of manufacturing these keyboards.

c. briefly explain whythe department might use two separate activity bases in applying overhead costs to one type of
product

d. identify at least two types of overhead cost pools that might be "driven" by each of the two cost drivers indicated in this
situation.

e. what appears to be the pfima/ydriver of overhead costs in the manufacture of keyboards?

f. compute the gross profit that will result from the sale of 4.000 of these keyboards at a sales price of $40 each.

Gemini inc.'s optimal cash transfer amount, using the baumol model, is $60,000. the firm's fixed cost per cash transfer of marketable securities to cash is $180, and the total cash needed for transactions annually is $960,000. on what opportunity cost of holding cash was this analysis based?

The rybczynski theorem describes: (a) how commodity price changes influence real factor rewards (b) how commodity price changes influence relative factor rewards. (c) how changes in factor endowments cause changes in commodity outputs. (d) how trade leads to factor price equalization.

Alpha company uses the periodic inventory system for purchase & sales of merchandise. discount terms for both purchases & sales are, 2/10, n30 and the gross method is used. unless otherwise noted, fob destination will apply to all purchases & sales. the value of inventory is based on periodic system. on january 1, 2016, beginning inventory consisted of 350 units of widgets costing $10 each. alpha prepares monthly income statements. the following events occurred during the month of jan.: dateactivitya.jan. 3purchased on account 350 widgets for $11 each.b.jan. 5sold on account 400 widgets for $30 each. paid freight out with petty cash of $150.c.jan. 10purchased on account 625 widgets for $12 each.d.jan. 11shipping cost for the january 10 purchased merchandise was $400 was paid with a cheque by alpha directly to the freight company.e.jan. 12returned 50 widgets received from jan. 10 purchase as they were not the correct item ordered.f.jan. 13paid for the purchases made on jan. 3.g.jan. 21sold on account 550 widgets for $30 each. paid freight out with petty cash of $250.h.jan. 22authorize credit without return of goods for 50 widgets sold on jan. 21 when customer advised that they were received in defective condition.i.jan. 25received payment for the sale made on jan. 5.j.jan. 26paid for the purchases made on jan. 10.k.jan. 31received payment for the sale made on jan. 21.use this information to prepare the general journal entries (without explanation) for the january events. if no entry is required then enter the date and write "no entry required."