1 Assume that a company makes only two products: Product A and Product B. The company's activity-based costing system has allocated $60,000 to an activity called machine setups. It is considering allocating the machine setups cost its products using either the number of setups or setup hours as the activity measure. It gathered the following data with respect to these two potential activity measures: 1 points Product A 30 Product B 45 Skipped Number of machine setups Number of setup hours per setup 6 6 If the company uses number of machine setups as the activity measure, what is the activity rate for machine setups? eBook Print Multiple Choice References $800 O $2,000 O O $5,000 O $600 Chec 2 Assume a company produces and sells only two products14,000 units of Product A and 6,000 units of Product B. The selling prices are $65 per unit for Product A and $96 per unit for Product B. Product A's direct materials and direct labor costs per unit are $30 and $12, respectively. Product B's direct materials and direct labor costs per unit are $34 and $15, respectively. The company uses a plantwide overhead rate based on direct labor dollars. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to three cost pools. The following additional information is available for the company as a whole and for Products A and B: 1 points Skipped Activity Cost Pool Machining Machine setups Product design Activity Measure Machine-hours Number of setups Number of products Estimated Overhead Cost $ 300,000 $ 150,000 $ 80,000 Expected Activity 15,000 MH 200 Setups 2 Products eBook Activity Measure Machine-hours Number of setups Number of products Product A 9,000 50 Print Product B 6,000 150 1 1 References Using the company's plantwide approach, the product margin for Product A is closest to: Multiple Choice $(12,400) O $(14,400) O $(22,400) O $(2,400) Check 3 Assume that company makes only two products: Product A and Product B. The company's activity-based costing system has allocated $60,000 to an activity called machine setups. It is considering allocating the machine setups cost its products using either the number of setups or setup hours as the activity measure. It gathered the following data with respect to these two potential activity measures: 1 points Product A 30 Number of machine setups Number of setup hours per setup Product B 45 6 Skipped 6 If the company uses number of machine setups as the activity measure, how much machine setup activity cost would be allocated to Product B? eBook Print Multiple Choice References O $28,000 O $36.000 $36,000 $24,000 O $38,000 O Che 5 Assume a company is conducting a time-driven activity-based costing study in its Purchasing Department. To aid the study, the company provided the following data regarding its Purchasing Department, the activity demands of three of its many jobs, and the activity demands of all jobs: 1 points Number of employees Average salary per employee Weeks of employment per year Hours worked per week Practical capacity percentage 14 $ 39,312 52 40 90% Skipped eBook Requisition Processing 30 Bid Evaluation 15 Inspection 45 Minutes per unit of the activity Print JobA Job B 9 5 Job C 6 4 Number of requisitions processed Number of bid evaluations Number of inspections All Jobs 11,000 10,000 15,000 References 4 3 2 6 8 What is the unused capacity in minutes? Multiple Choice 412,780 O 408,880 O 417,480 O 404,680 404,680 7 Assume a company's activity-based costing system includes three activities. The following information is available with respect to those activities: 1 points Estimated Overhead Cost $ 150.000 $ 132.000 $ 220.000 Activity Cost Pool Travel Deliveries Customer service Skipped Expected Activity 100,000 miles driven 2.200 customer deliveries 10,000 phone calls eBook What is the activity rate for the Deliveries activity? Print Multiple Choice References $50 per delivery $60 per delivery $70 per delivery O $80 per delivery