1. County Bank had the following activities, traceable costs, and physical flow of driver units:

  Traceable Physical flow of
Activities Costs Driver Units
Open new accounts $50,000 1,000 accounts
Process deposits 36,000 400,000 deposits
Process withdrawals 15,000 200,000 withdrawals
Process loan applications 27,000 900 applications

The above activities are used by North county branch and South county branch:

 
North
South
New accounts
200
400
Deposits
40,000
20,000
Withdrawals
15,000
18,000
Loan applications
100
160

What is the cost per driver unit for the new account activity? 
      


2. For County Bank in #1, how much of the deposit cost will be assigned to South?
      

3. Brasie Corporation had the following activities, traceable costs, and physical flow of driver units:
Activities Traceable Costs Physical flow of Driver Units
Account inquiry (hours) $8,000 500 hours
Account billing (lines)   5,600 200,000 lines
Account verification (accounts)   3,000 2,000 accounts
Correspondence (letters)   1,000 200 letters
 
The above activities are used by departments A and B as follows:
  A B
Account inquiry (hours) 50 hours 80 hours
Account billing (lines) 25,000 lines 20,000 lines
Account verification (accounts) 200 contracts 100 contracts
Correspondence (letters) 20 letters 100 letters
What is the cost per driver unit for the account inquiry activity?  
      

4. For the Brasie Corporation in #3, how much of the account inquiry cost will be assigned to Department A?
      

5. The two key items in determining the budgeted factory-overhead rate are budgeted total overhead and
      

6. The budgeted factory-overhead rate is computed as  
      

7. To apply the budgeted overhead to a job, the budgeted overhead rate is multiplied by the  
      

8. Romani Company had the following information:
Budgeted factory overhead $75,000
Actual factory overhead   80,000
Budgeted direct-labor hours   20,000
Actual direct-labor hours   21,000
The budgeted factory-overhead rate using direct-labor hours as the cost driver is  
     

9. For the Romani Company in #8, overhead applied to a job requiring 2,000 direct-labor hours is
      

10. Wilbur Company had the following information:
Budgeted factory overhead $80,000
Actual factory overhead   82,000
Budgeted machine hours   40,000
Actual machine hours   39,500
The budgeted factory-overhead rate using machine hours as the cost driver is
      

11. For the Wilbur Company in #10, overhead applied to a job requiring 10,000 machine hours is
      

12. If a department identifies more than one cost driver for overhead costs, the department ideally should  
      

13. The cost driver chosen for applying factory overhead costs should be the cost driver that