1. Tatman Corporation uses an activity-based costing system with the following three activity cost pools:

Activity Cost Pool	Total Activity
Fabrication	10,000 Machine-hours
Order Processing	800 Orders
Other	N/A

The other activity pool is used to accumulate costs of idle capacity and organization-sustaining costs.

The company has provided the following data concerning its costs:

Wages and Salaries	320,000
Depreciation	220,000
Occupancy	120,000
Total	660,000

The distribution of resource consumptions across activity cost pools is given below: (Activity Cost Pools/Order)

	Fabrication	Processing	Other	Total
Wages and salaries	20%	65%	15%	100%
Depreciation	15%	35%	50%	100%
Occupancy	5%	70%	25%	100%

The activity rate for the Fabrication activity cost pool is closest to:

$3.30 per machine-hour

$13.20 per machine-hour

$10.30 per machine-hour

$8.80 per machine-hour

2. Mayeux Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system:

Costs:

Wages & salaries $320,000

Depreciation $160,000

Utilities $240,000

TOTAL $720,000

Distribution of resource consumption:

	Assembly	Setting Up	Other	Total
Wages & salaries	50%	40%	10%	100%
Depreciation	10%	55%	35%	100%
Utilities	15%	50%	35%	100%

How much cost, in total, would be allocated in the first-stage allocation to the Setting Up activity cost pool?

$360,000

$336,000

$288,000

$348,000

3. Feldpausch Corporation has provided the following data from its activity-based costing system:

Activity Cost Pool	Total Cost	Total Activity
Assembly	$1,137,360	84,000 machine-hours
Processing orders	$28,479	1,100 orders
Inspection	$97,155	1,270 inspection-hours

The company makes 470 units of product W26B a year, requiting a total of 660 machine-hours, 50 orders, and 40 inspection-hours per year. The products direct materials cost is $40.30 per unit and its direct labor cost is $42.22 per unit. The product sells for $118.00 per unit. According to the activity-based costing system, the product margin for product W26B is:

$6,444.70 per unit

$4,679.20 per unit

$3,384.70 per unit

$16,675.60 per unit

4. Francis Manufacturing Company is currently preparing its cash budge for the next month and has gathered the following information:

Expected cash receipts	$39,400
Expected disbursements:
Direct Materials	$12,000
Direct Labor	$9,000
Manufacturing Overhead	$11,500
Selling/Administrative Expenses	$22,000

The beginning cash balance will be $6,000 and the company requires a minimum cash balance at the end of the month of $5,000. How much will Francis Manufacturing need to borrow to meet its cash needs for the month?

$9,100

$14,100

$20,100

None of these