19. Zimmerman Company manufactures two products, Board 12 and Case 165. Zimmermans overhead costs consist of setting up machines, $2320000; machining, $5650000; and inspecting, $1740000. Information on the two products is:

	Board 12	Case 165
Direct labor hours	15000	25000
Machine setups	600	400
Machine hours	24000	26000
Inspections	800	700

Overhead applied to Board 12 using activity-based costing is

$4678000.

$5826000.

$5032000.

$3641250.

20. What is the primary benefit of activity-based costing?

Arbitrary allocations of overhead costs

More accurate product costing

The cost of implementation

More cost pools

23. Sales are $400000 and variable costs are $260000. What is the contribution margin ratio?

65%.

Cannot be determined because amounts are not expressed per unit.

54%.

35%.

24. The following information is available for Bramble Corp.:

Sales	$520000		Total fixed expenses	$150000
Cost of goods sold	300000		Total variable expenses	260000

A CVP income statement would report

contribution margin of $260000.

gross profit of $260000.

gross profit of $220000.

contribution margin of $370000.

26. A company desires to sell a sufficient quantity of products to earn a profit of $200000. If the unit sales price is $16, unit variable cost is $12, and total fixed costs are $800000, how many units must be sold to earn net income of $200000?

100000 units

212500 units

425000 units

250000 units

34. Vaughn Manufacturing determines that 61000 pounds of direct materials are needed for production in July. There are 4000 pounds of direct materials on hand at July 1 and the desired ending inventory is 3400 pounds. If the cost per unit of direct materials is $3, what is the budgeted total cost of direct materials purchases?

$181200.

$188400.

$177600.

$184800.