28.

At an activity level of 9,000 machine-hours in a month, Nooner Corporation's total variable production engineering cost is $796,500 and its total fixed production engineering cost is $235,290. What would be the total production engineering cost per unit, both fixed and variable, at an activity level of 9,300 machine-hours in a month? Assume that this level of activity is within the relevant range. (Do not round intermediate calculations.)

a. $113.45

b. $113.80

c. $112.91

d. $113.98

39.

A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $5,490 and is paid at the beginning of the first year. Seventy percent of the premium applies to manufacturing operations and thirty percent applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage?

Product

Period

a. $5,490

$0

b. $3,843

$1,647

c. $1,281

$549

d. $2,562

$1,098