11 Management Accounting. Please answer all ASAP. Thank you.

11. Here is information on the indirect manufacturing costs of the Brico company. It uses an activity-based accounting system.

Production :

MOD: $145,000

Amortization of machinery: $25,000

Electricity and insurance: $30,000

Factory rent: $55,000

Administration:

Administrative staff salary: $60,000

Amortization of office equipment: $8,000

Selling fees :

Sellers commission: $45,000

Advertising costs: $10,000

Total costs: $378,000

Manufacturing is divided into three business clusters:

	Processing	Packaging	Shipping
Production
MOD	45%	35%	20%
amortized machinery	55%	35%	10%
Electricity, ass.	35%	35%	30%
Factory rent	40$	40%	20%
Administration
Administrative salary	15%	35%	50%
Amortized equipment	15%	35%	50%
Selling fee
Com. sellers	0%	0%	100%
Advertising	0%	0%	100%

What is the total manufacturing cost per business center for Processing, Packaging and Shipping?

Please choose an answer.

a. Processing: $121,700; Packaging: $115,800; Shipping: $140,500

b. Processing: $0; Packaging: $0; Shipping: $378,000

c. Processing: $126,000; Packaging: $126,000; Shipping: $126,000

d. Processing: $255,000; Packaging: $68,000; Shipping: $55,000

12. What are the cost object support cost allocation methods? Please choose an answer.

a. The substantial method, the direct method and the reciprocal method.

b. The interrelations method, the indirect method and the sequential method.

c. The reciprocal method, the direct method and the sequential method.

d. The indirect method, the substantial method and the interrelations method.

13. BQ-Plus is a company specializing in the sale of barbecues. It uses the variable cost method to make its financial sales forecasts. Here is some financial information for the month of June.

Average unit selling price: $450.

Unit variable cost: $250.

Fixed monthly costs: $10,000.

Quantity sold in June: 225 units.

If sales increase by 10% for next July, how much will the net profit be in July if fixed costs remain the same as in June?

Please choose an answer.

a. $35,000

b. $45,000

c. $49,400

d. $39,400

14. Stylo Plus makes two premium pens for senior executives. The first model, the "Work Companion", is designed for office use and includes a pen holder, while the other model, the "Travel Companion", is aimed at executives on the go due to its light weight and the fact that he can easily pass through airport security. The following table presents data relating to the two models offered:

	Work Companion	Travel Companion
Expected Production	35 000	115 000
Cost of raw materials	17,00 $	9,25 $
Direct labor cost	3,75 $	4,10 $

Stylo Plus is considering adopting an activity-based costing system in its factory and has identified the following three main activities:

	work companion	Compagnon de voyage	Budgeted cost
Assembly	3 000 labor hours	4 100 labor hours	110 000 $
Quality Assurance	190 inspection hours	150 inspection hours	370 000 $
Packaging	125 boxes	265 boxes	34 000 $

What is the per unit indirect cost of Work Companion pens?

Please choose an answer.

a. $3.42

b. $7.55

c. $14.70

d. $22,673

15. he company Transport Rapide delivers various packages throughout Quebec. It does business with two distribution centers, one in Montreal and one in Quebec. It incurs variable costs of $2 per kilometer traveled and fixed costs of $55,000 per month. The Montreal division requires 65% of the transport and the Quebec City division, 35%. For the month of September, 5,000 km were traveled for the Montreal division and 14,000 for the Quebec City division. Calculate the total costs that will need to be billed to each division. Please choose an answer.

a. Montreal Division: $27,500 and Quebec Division: $27,500

b. Montreal Division: $10,000 and Quebec Division: $28,000

c. Montreal Division: $35,750 and Quebec Division: $19,250

d. Montreal Division: $45,750 and Quebec Division: $47,250