16.

Heathex Manufacturing Company manufactures two products (I and II). The overhead costs ($36,200) have been divided into three cost pools that use the following activity drivers:

Product	Number of Orders	Number of Labor Transactions	Labor Hours
I	12	35	290
II	8	125	1,250
Cost per pool	$10,200	$6,000	$20,000

What is the allocation rate per labor transaction using an activity-based costing (ABC) system? (Round to two decimal places.)

a.$291.43

b.$37.50

c.$75.55

d.$68.97

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17

Question Content Area

The following data are recorded by Alex Company:

	Year 1	Year 2
Output (units)	13,500	11,800
Input quantities:
Labor (hours)	5,250	4,150
Input prices:
Labor (per hour)	$6	$7

What is the partial operational productivity measure for labor (rounded to two decimal places) for Year 1?

a.2.24

b.3.25

c.2.25

d.2.57

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20.

Question Content Area

Information from the records of Abel Corporation for July was as follows:

Sales	$1,230,000
Selling and administrative expenses	210,000
Direct materials used	264,000
Direct labor	300,000
Factory overhead *	405,000

*Variable overhead is $205,000, fixed overhead is $200,000

	Inventories
	July 1	July 31
Direct materials	$36,000	$42,000
Work in process	75,000	84,000
Finished goods	69,000	57,000

The prime costs are

a.$264,000.

b.$210,000.

c.$300,000.

d.$564,000.