1. Privott, Inc., manufactures and sells two products: Product Z9 and Product N0. The company is considering adopting 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 Z9	Product N0	Total
Labor-related	DLHs	$	343,018	8,300	4,900	13,200
Product testing	tests		55,247	1,350	1,450	2,800
Order size	MHs		480,608	5,900	6,200	12,100
		$	878,873

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

rev: 03_25_2018_QC_CS-119201

Multiple Choice

• $38.10 per DLH

• $313.88 per DLH

• $40.92 per DLH

• $25.99 per DLH

2.

Ravelo Corporation has provided the following data from its activity-based costing system:

Activity Cost Pools	Estimated Overhead Cost		Expected Activity
Assembly	$	509,520	49,500	machine-hours
Processing orders	$	59,763	1,650	orders
Inspection	$	83,089	1,660	inspection-hours

Data concerning the company's product L19B appear below:

Annual unit production and sales		540
Annual machine-hours		1,100
Annual number of orders		180
Annual inspection hours		130
Direct materials cost	$	48.74	per unit
Direct labor cost	$	21.45	per unit

According to the activity-based costing system, the unit product cost of product L19B is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

• $70.19 per unit

• $112.02 per unit

• $115.27 per unit

• $67.96 per unit

3.

Mahaley, Inc., manufactures and sells two products: Product Q9 and Product F0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:

	Expected Production	Direct Labor-Hours Per Unit	Total Direct Labor-Hours
Product Q9	960	9.6	9,216
Product F0	960	7.6	7,296
Total direct labor-hours			16,512

The direct labor rate is $23.40 per DLH. The direct materials cost per unit for each product is given below:

	Direct Materials Cost per Unit
Product Q9	$176.50
Product F0	$148.30

The company is considering adopting 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 Q9	Product F0	Total
Labor-related	DLHs	$	395,680	9,216	7,296	16,512
Machine setups	setups		51,830	1,100	1,000	2,100
Order size	MHs		292,700	4,700	4,500	9,200
		$	740,210

The unit product cost of Product F0 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

rev: 03_22_2018_QC_CS-119201

Multiple Choice

• $758.10 per unit

• $683.10 per unit

• $401.14 per unit

• $505.26 per unit

4.

Belsky Corporation has provided the following data from its activity-based costing system:

Activity Cost Pools	Estimated Overhead Cost			Expected Activity
Assembly	$	968,150		67,000	machine-hours
Processing orders	$	92,625		1,900	orders
Inspection	$	132,060		1,860	inspection-hours

The company makes 440 units of product Q19S a year, requiring a total of 700 machine-hours, 41 orders, and 11 inspection-hours per year. The product's direct materials cost is $35.96 per unit and its direct labor cost is $29.70 per unit.

According to the activity-based costing system, the unit product cost of product Q19S is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

• $94.97 per unit

• $65.66 per unit

• $93.35 per unit

• $85.45 per unit