1a.Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:

Activities	Activity Rate
Setting up batches	$84.50		per batch
Processing customer orders	$75.57		per customer order
Assembling products	$10.71		per assembly hour

Data concerning two products appear below:

	Product V09X	Product A09X
Number of batches	70	13
Number of customer orders	21	10
Number of assembly hours	493	698

How much overhead cost would be assigned to Product V09X using the activity-based costing system?

$170.78

$127,820.00

$12,782.00

$5,915.00

1b.

Abraham Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 1,500 units and of Product B is 900 units. There are three activity cost pools, with estimated costs and expected activity as follows:

Activities	Estimated Overhead Cost	Expected Activity
		Product A	Product B	Total
Activity 1	$33,839	1,000	900	1,900
Activity 2	$53,703	2,000	700	2,700
Activity 3	$67,850	600	580	1,180

The overhead cost per unit of Product A is closest to:

$61.39

$64.75

$70.34

$42.20

1c.

Fullard, Inc., manufactures and sells two products: Product E2 and Product G3. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:

	Expected Production	Direct Labor-Hours Per Unit	Total Direct Labor-Hours
Product E2	1,000	6.0	6,000
Product G3	800	5.0	4,000
Total direct labor-hours			10,000

The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

		Estimated	Expected Activity
Activity Cost Pools	Activity Measures	Overhead Cost	Product E2	Product G3	Total
Labor-related	DLHs	$269,900	6,000	4,000	10,000
Machine setups	setups	74,178	500	400	900
General factory	MHs	865,080	4,300	4,600	8,900
		$1,209,158

The total overhead applied to Product E2 under activity-based costing is closest to:

$671,750

$417,960

$621,110

$725,520

1d.

Karsten, Inc., manufactures and sells two products: Product M8 and Product I2. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:

	Expected Production	Direct Labor-Hours Per Unit	Total Direct Labor-Hours
Product M8	700	9.0	6,300
Product I2	300	6.0	1,800
Total direct labor-hours			8,100

The direct labor rate is $21.20 per DLH. The direct materials cost per unit for each product is given below:

	Direct Materials Cost per Unit
Product M8	$211.30
Product I2	$242.90

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

		Estimated	Expected Activity
Activity Cost Pools	Activity Measures	Overhead Cost	Product M8	Product I2	Total
Labor-related	DLHs	$299,781	6,300	1,800	8,100
Machine setups	setups	46,514	600	700	1,300
General factory	MHs	462,981	4,900	4,800	9,700
		$809,276

The unit product cost of Product I2 under activity-based costing is closest to:

$1,133.78 per unit

$1,179.38 per unit

$1,439.33 per unit

$969.56 per unit