10 Meester Corporation has an activity based costing system with three activity cost pools Machining, Order Filling, and Other In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption Data used in the first stage allocations follow Overhead costs Equipment depreciation $ 96,000 Supervisory expense $ 8,000 Distribution of Resource Consumption Across Activity Cost Pools Activity Cost Pools Machining Order Filling Other Equipment depreciation 0 30 0 10 0 60 Supervisory expense 0 60 0 10 0 30 Machining costs are assigned to products using machine hours (MHs) and Order Filling costs are assigned to products using the number of orders The costs in the Other activity cost pool are not assigned to products Activity data for the company's two products follow Activity MHs (Machining) Orders (Order Filling) Product M0 4,500 400 Product H2 5,500 600 Total 10,000 1,000 The activity rate for the Order Filling activity cost pool under activity based costing is closest to $104 00 per order $8 00 per order $10 40 per order $13 33 per order 11 Stut Corporation, a retailer, plans to sell 28,000 units of Product X during the month of August If the company has 6,000 units on hand at the start of the month, and plans to have 9,000 units on hand at the end of the month, how many units of Product X must be purchased from the supplier during the month 25,000 28,000 31,000 37,000 17 Marty's Merchandise has budgeted sales as follows for the second quarter of the year April $ 30,000 May $ 60,000 June $ 50,000 Cost of goods sold is equal to 70 of sales The company wants to maintain a monthly ending inventory equal to 120 of the cost of goods sold for the following month The inventory on March 31 was below this target and was only $22,000 The company is now preparing a Merchandise Purchases Budget for April, May, and June The desired beginning inventory for June is $35,000 $42,000 $50,000 $38,000

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#10 Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other. In the first stage allocations, costs in the

#10

Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow:

Overhead costs:
Equipment depreciation	$	96,000
Supervisory expense	$	8,000

Distribution of Resource Consumption Across Activity Cost Pools:

	Activity Cost Pools
	Machining	Order Filling	Other
Equipment depreciation	0.30	0.10	0.60
Supervisory expense	0.60	0.10	0.30

Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:

Activity:

	MHs (Machining)	Orders (Order Filling)
Product M0	4,500	400
Product H2	5,500	600
Total	10,000	1,000

The activity rate for the Order Filling activity cost pool under activity-based costing is closest to:

$104.00 per order

$8.00 per order

$10.40 per order

$13.33 per order

#11

Stut Corporation, a retailer, plans to sell 28,000 units of Product X during the month of August. If the company has 6,000 units on hand at the start of the month, and plans to have 9,000 units on hand at the end of the month, how many units of Product X must be purchased from the supplier during the month?

25,000

28,000

31,000

37,000

#17

Marty's Merchandise has budgeted sales as follows for the second quarter of the year:


April	$	30,000
May	$	60,000
June	$	50,000

Cost of goods sold is equal to 70% of sales. The company wants to maintain a monthly ending inventory equal to 120% of the cost of goods sold for the following month. The inventory on March 31 was below this target and was only $22,000. The company is now preparing a Merchandise Purchases Budget for April, May, and June.

The desired beginning inventory for June is:

$35,000

$42,000

$50,000

$38,000