1.

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

Activity Cost Pool	Total Cost			Total Activity
Assembly	$	942,480		66,000	machine-hours
Processing orders	$	85,050		1,800	orders
Inspection	$	126,854		1,820	inspection-hours

The company makes 430 units of product O37W a year, requiring a total of 690 machine-hours, 40 orders, and 10 inspection-hours per year. The product's direct materials cost is $35.72 per unit and its direct labor cost is $29.46 per unit.

According to the activity-based costing system, the average cost of product O37W is closest to:

$94.11 per unit.

$89.72 per unit.

$65.18 per unit.

$92.49 per unit.

2.

Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information:

Activity	Cost Driver	Amount			M		XY
Production setups	Number of setups	$	82,000		8		12
Material handling	Number of parts		48,000		56		24
Packaging costs	Number of units		130,000		80,000		50,000
		$	260,000

What is the total overhead allocated to Product M using the current system?

3.

Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information:

Activity	Cost Driver	Amount			M		XY
Production setups	Number of setups	$	82,000		8		12
Material handling	Number of parts		48,000		56		24
Packaging costs	Number of units		130,000		80,000		50,000
		$	260,000

What is the total overhead per unit allocated to Product M using activity-based costing (ABC)?