1) Ollivier Corporation has an activity-based costing system with three activity cost pools-Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow:

Overhead costs:
Equipment expense	$123,000
Indirect labor	$7,100

Distribution of Resource Consumption Across Activity Cost Pools:
	Activity Cost Pools
	Processing	Supervising	Other
Equipment expense	0.50	0.40	0.10
Indirect labor	0.50	0.30	0.20

Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:

Activity:
	MHs (Processing)	Batches (Supervising)
Product C4	17,400	710
Product L7	1,330	1,330
Total	18,730	2,040

The activity rate for the Supervising activity cost pool under activity-based costing is closest to:

a $10.23 per batch

b $20.46 per batch

c $25.16 per batch

d $63.77 per batch

---------------------------------------------------------------------

2) A company produces a single product. Variable production costs are $14.0 per unit and variable selling and administrative expenses are $5.0 per unit. Fixed manufacturing overhead totals $56,000 and fixed selling and administration expenses total $60,000. Assuming a beginning inventory of zero, production of 6,000 units and sales of 4,600 units, the dollar value of the ending inventory under variable costing would be:

a $19,600

b $32,200

c $26,600

d $12,600

---------------------------------------------------------------------

3) A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Selling price	$181
Units in beginning inventory	0
Units produced	13,100
Units sold	12,500
Units in ending inventory	600
Variable cost per unit:
Direct materials	$56
Direct labor	$48
Variable manufacturing overhead	$12
Variable selling and administrative	$10
Fixed costs:
Fixed manufacturing overhead	$471,600
Fixed selling and administrative	$187,500

What is the total period cost for the month under variable costing?

a $471,600

b $312,500

c $659,100

d $784,100

---------------------------------------------------------------------

4) A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Selling price	$148
Units in beginning inventory	0
Units produced	3,200
Units sold	2,870
Units in ending inventory	330
Variable cost per unit:
Direct materials	$45
Direct labor	$23
Variable manufacturing overhead	$7
Variable selling and administrative	$19
Fixed costs:
Fixed manufacturing overhead	$112,000
Fixed selling and administrative expenses	$34,440

The total gross margin for the month under absorption costing is:

a $109,060

b $20,090

c $144,180

d $154,980

---------------------------------------------------------------------

5) Khanam Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price	$147
Units in beginning inventory	0
Units produced	6,900
Units sold	6,600
Units in ending inventory	300
Variable costs per unit:
Direct materials	$24
Direct labor	$54
Variable manufacturing overhead	$18
Variable selling and administrative	$18
Fixed costs:
Fixed manufacturing overhead	$186,300
Fixed selling and administrative	$27,600

The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.

What is the unit product cost for the month under absorption costing?

a $123 per unit

b $96 per unit

c $114 per unit

d $141 per unit