1) Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows: Production and sales volume T-SHIRTS 64,000 units SWEATSHIRTS 40,000 units Selling price Direct material Direct labor Manufacturing overhead Gross profit Selling and administrative Operating profit $16.00 $2.50 $29.00 $5.00 $4.30 $7.20 $1.70 $3.00 $7.50 $13.80 $4.30 $3.20 $7.00 $6.80 Tiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information: Activity Supervision Inspection Activity cost $107,520 $70,200 Activity-cost driver Direct labor hours (DLH) Inspections Activities demanded T-SHIRTS SWEATSHIRTS 0.75 DLH/unit 1.20 DLH/unit 48,000 DLHS 48,000 DLHS 40,000 inspections 18,500 inspections Under the revised ABC system, overhead costs per unit for the Sweatshirts will be, interim calculations. Round the final answer to the nearest cent) A) $1.19 per unit B) $1.90 per unit C) $1.20 per unit (Do not round D) $1.58 per unit 2) Wilde Corporation budgeted the following costs for the production of its one and only product for the next fiscal year: Direct materials $1,150,000 Direct labor 775,000 Manufacturing overhead Variable 850,000 Fixed 670,000 Selling and administrative Variable Fixed 410,000 490 000 Total costs $4.345.000 Wilde has an annual target operating income of $920,000. The markup percentage for setting prices as a percentage of variable manufacturing costs is. A) 21.17% B) 65.31% C) 89.73% D) 52.83% Answer the following questions using the information below: The Lumbar Chair Company manufacturers a standard rediner. During February, the firm's Assembly Department started production of 150.000 chairs During the month, the firm completed 170,000 chairs and transferred them to the Finishing Department. The firm ended the month with 20,000 chairs in ending inventory. All direct materials costs are added at the beginning of the production cyde Weighted-average costing is used by Lumbar 3) How many chairs were in inventory at the beginning of the month? Conversion costs are incurred uniformly over the production cyde A) 30,000 chairs B) 10,000 chairs 4) What were the equivalent units for materials for February? A) 170.000 chairs B) 150.000 chairs C) 40,000 chairs C) 160,000 chairs D) 20,000 chairs D) 190,000 chairs 5) What were the equivalent units for conversion costs for February if the beginning inventory was 70% complete as to conversion costs and the ending inventory was 40% complete as to conversion costs? A) 150,000 B) 170,000 C) 190,000 D) 178,000 6) Of the 150.000 units Lumbar started during February, how many were finished during the month? A) 130,000 B) 150,000 C) 190,000 D) 170,000 7) Weighty Steel processes a single type of steel. For the current period the following information is given: Units Material Costs Conversion Costs Beginning Inventory 3,000 $4,500 $5,400 Started During the Current Period 20,000 32.000 78,200 Ending Inventory 2.500 All materials are added at the beginning of the production process. The beginning inventory was 40% complete as to conversion, while the ending inventory was 30% completed for conversion purposes Weighty uses the weighted average costing method. What is the total cost assigned to the units completed and transferred this period? A) $109,440 B) $120,100 2 C) $113,160 D) $107,010