1.) Ringing Solutions produces 12,000 units of a cell phone. The production requires prime costs of $400,000, uses2,500 machine hours, and takes 1,800 setup hours. The activity rates are $50 per machine hour and $130 per setup hour. What is the unit cost of a cell phone? (Note: Round answer to two decimal places.)

Select one:

a.$63.25

b.$40.35

c.$30.55

d.$60.15

e.$100.65

2.) Process costing would be most appropriate for which of the following?

Select one:

a.caterer

b.photocopy shop

c.custom home builder

d.soft drink bottler

3.) Firm X and Firm Y are competitors within the same industry. Firm X produces its product using large amounts of direct labor. Firm Y has replaced direct labor with investment in machinery. Projected sales for both firms are 15% less than in the prior year. Which statement regarding projected profits is true?

Select one:

a.Firm X will lose more profit than Firm Y.

b.Neither Firm X nor Firm Y will lose profit.

c.Firm X and Firm Y will lose the same amount of profit.

d.Firm Y will lose more profit than Firm X.