1.

An activity analysis has shown that the number of components added to Product A and Product B is the cost driver for support costs. Support costs are $10 per component. Product A has 5 components and Product B has 10 components. What amounts of support costs should be assigned to Product A and Product B?

Product A Product B

A) $50 $100

B) $75 $150

C) $100 $50

D) $150 $75

2.

To estimate the monthly maintenance cost for the maintenance department in a hospital, the following monthly costs are available:

Monthly Expense Costs

Supervisor Salary Expense $4,000

Depreciation ExpenseMaintenance Equipment $6,000

Repairs ExpenseMaintenance Equipment $6,000

Supplies Expense $7,000

Wages ExpenseMaintenance Workers $10,000

The Supervisor Salary Expense and the Depreciation Expense are fixed costs. The remaining expenses are variable costs. There are 1,000 patient days in a month, which is the cost driver for maintenance costs. Estimate the cost function where Y is the monthly maintenance cost and X is the variable cost per patient day.

A) Y = $8 + $22X

B) Y = $8,000 + $22,000X

C) Y = $10,000 + $23X

D) Y = $10,000 + $23,000X