Question
1. Boesenhofer, Inc., manufactures and sells ... Boesenhofer, Inc., manufactures and sells two products: Product N6 and Product N7. The company has an activity-based costing
1. Boesenhofer, Inc., manufactures and sells ...
Boesenhofer, Inc., manufactures and sells two products: Product N6 and Product N7. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
|
| Estimated | Expected Activity | |||
Activity Cost Pools | Activity Measures | Overhead Cost | Product N6 | Product N7 | Total | |
Labor-related | DLHs | $ | 345,060 | 2,100 | 5,000 | 7,100 |
Machine setups | setups |
| 128,534 | 600 | 800 | 1,400 |
Order size | MHs |
| 107,598 | 4,100 | 3,800 | 7,900 |
|
| $ | 581,192 |
|
|
|
The activity rate for the Machine Setups activity cost pool is closest to:
Multiple Choice
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$73.57 per setup
$91.81 per setup
$26.24 per setup
$28.32 per setup
2. Vanvalkenburg, Inc., manufactures and ...
Vanvalkenburg, Inc., manufactures and sells two products: Product Q5 and Product J0. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
|
| Estimated | Expected Activity | |||
Activity Cost Pools | Activity Measures | Overhead Cost | Product Q5 | Product J0 | Total | |
Labor-related | DLHs | $ | 191,748 | 3,000 | 2,800 | 5,800 |
Production orders | orders |
| 70,536 | 300 | 500 | 800 |
Order size | MHs |
| 295,592 | 4,300 | 4,500 | 8,800 |
|
| $ | 557,876 |
|
|
|
The activity rate for the Order Size activity cost pool under activity-based costing is closest to:
Multiple Choice
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$36.23 per MH
$68.48 per MH
$96.19 per MH
$33.59 per MH
3. Weirick, Inc., manufactures and sells ...
Weirick, Inc., manufactures and sells two products: Product T8 and Product P4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
|
| Estimated | Expected Activity | |||
Activity Cost Pools | Activity Measures | Overhead Cost | Product T8 | Product P4 | Total | |
Labor-related | DLHs | $ | 130,500 | 2,400 | 1,200 | 3,600 |
Production orders | orders |
| 61,530 | 1,300 | 400 | 1,700 |
Order size | MHs |
| 962,370 | 3,300 | 3,100 | 6,400 |
|
| $ | 1,154,400 |
|
|
|
The total overhead applied to Product P4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
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$900,840
$466,147
$524,123
$1,023,900
4. Wimpy Inc. produces and sells a single ...
Wimpy Inc. produces and sells a single product. The selling price of the product is $230.00 per unit and its variable cost is $78.20 per unit. The fixed expense is $390,456 per month.
The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
Top of Form
$1,148,400
$757,944
$591,600
$390,456
5. Majid Corporation sells a product for ...
Majid Corporation sells a product for $135 per unit. The product's current sales are 41,100 units and its break-even sales are 32,115 units.
What is the margin of safety in dollars?
Multiple Choice
$3,387,722
$5,548,500
$4,335,525
$1,212,975
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