1) Sheffield Corp. sells two types of computer hard drives. The sales mix is 30% (Q-Drive) and 70% (Q-Drive Plus). Q-Drive has variable costs per unit of $90 and a selling price of $150. Q-Drive Plus has variable costs per unit of $105 and a selling price of $195. Sheffields fixed costs are $1296000. How many units of Q-Drive would be sold at the break-even point?

4800.

11200.

16000.

6480.

2)

Marigold Corp. has a weighted-average unit contribution margin of $30 for its two products, Standard and Supreme. Expected sales for Marigold are 70000 Standard and 30000 Supreme. Fixed expenses are $1200000. How many Standards would Marigold sell at the break-even point?

28000.

70000.

12000.

40000.

3)Marigold Corp. has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Marigold incurs $6690000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. The weighted-average contribution margin ratio is

37%.

40%.

43%.

50%.

4)Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year.

Activity Cost Pool	Cost Driver	Est. Overhead		Cost Driver Activity
Ordering and Receiving	Orders	$ 55000		500 orders
Machine Setup	Setups	238500		450 setups
Machining	Machine hours	1337500		125000 MH
Assembly	Parts	1070000		1000000 parts
Inspection	Inspections	235000		500 inspections

If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is

$10.70.

$29.36.

$8.14.

$13.38.

5)Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year.

Activity Cost Pool	Cost Driver	Est. Overhead		Cost Driver Activity
Ordering and Receiving	Orders	$ 110000		500 orders
Machine Setup	Setups	288000		450 setups
Machining	Machine hours	1475000		125000 MH
Assembly	Parts	1180000		1000000 parts
Inspection	Inspections	290000		500 inspections

If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is

$1.10 per direct labor hour.

$6686 per order.

$0.11 per part.

$220 per order.