1. CraftMade Company expects to produce 22,000 total units during the current period. The costs and cost drivers associated with four activity cost pools are given below:

ACTIVITIES: Unit Level Batch Level Product Level Facility Level

Cost $39,000 $29,000 $15,000 $179,000

Cost Driver 3,000 labor Hrs. 200 setups % 0f use $22,000.

Production of 1,000 units of an auto towing tool required 600 labor hours, 20 setups, and consumed 25 % of the product sustaining activities. How much total overhead cost will be allocated to this product if the company allocates overhead on the basis of a single overhead allocation rate based on direct labor hours? (Do not round intermediate calculations.)

A. $8,000

B. $51,800

C. $39,000

D. $12,850

2. Scott Tools produces a variety of scissors and other cutting instruments at its Statesboro manufacturing plant. The plant is highly automated and uses an activity-based costing system to allocate overhead costs to its various product lines. The company expects to produce 29,000 total units during the current period. The costs and cost drivers associated with four activity cost pools are given below:

ACTIVITIES: Unit Level Batch Level Product Level Facility Level

Cost $65,000 ? $22,000 $203,000

Cost Driver 5,000 labor Hrs. 100 setups % of use 29,000 units

Production of 2,000 units of a pipe-cutting tool required 800 labor hours, 15 setups, and consumed 20 % of the product sustaining activities and resulted in an overhead allocation of $31,800. What amount of batch-level overhead costs was expected during the period? (Do not round intermediate calculations.)

A. $3,000

B. $20,000

C. $28,800

D. None of these answers is correct.

3. Max bought a ticket to the championship baseball game for $145. Someone approaches him outside the stadium and offers him $315 for his ticket. If Max decides to go to the game, instead of selling his ticket, how much does it cost Max to go to the game?

A. $315

B. $170

C. $145

D. None of the above.

4. Lucinda purchased a raffle ticket for $21. Just before the grand prize drawing two people tried to buy her ticket. The first person offered $90, and another offered $125. What is Lucinda's opportunity cost of keeping the raffle ticket?

A. $42

B. $111

C. $146

D. $125