3) XYZ Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 21,000 units in its beginning work in process inventory that were 60% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $8,500. An additional 108,000 units were started into production during the month and 120,000 units were completed in the Welding Department and transferred to the next processing department. The ending work in process inventory of the Welding Department was 80% complete with respect to conversion costs. A total of $295,500 in conversion costs were incurred in the department during the month. What is the cost per equivalent unit for conversion costs for the month? Note: Your answer should be in the format of $***.**. Round interim calculations and your final answer to 2 decimal places. Use commas to separate thousands.

Answer: $2.39

4) For 2018, XYZ Company decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs, it was determined that number of design changes, setups, and inspections are the primary manufacturing overhead cost drivers. The following information was gathered during the analysis: Cost pool Manufacturing overhead costs Activity level Design changes $128,000 400 design changes Setups 550,000 1,600 setups Inspections 70,000 35,000 inspections Total manufacturing overhead costs $748,000 During 2018, two customers, Money Managers and Hospital Systems, are expected to use the following printing services: Activity Money Managers Hospital Systems Pages 70,000 86,000 Design changes 13 5 Setups 20 12 Inspections 450 600 Under Activity-based Costing, what is the setup cost allocated to Money Managers?

Answer: $6,875

5) XYZ manufactures and sells two products: Product S6 and Product S7. The direct labor rate is $18.5 per direct labor hour. XYZ plans to produce 1,000 units of S6 and each unit requires 6 direct labor hours. It also plans to produce 200 units of S7, and each unit requires 9 direct labor hours. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity cost pools Activity measures Estimated overhead cost Expected activity Product S6 Product S7 Labor-related DLHs $170,664 6,000 1,800 Production orders Orders $59,040 400 500 Order size MHs $252,648 3,400 3,200 What is the total overhead applied to Product S7 under activity-based costing? Note: Your answer should be in the format of $***. Round interim calculations to 2 decimal places. Round the final answer to the nearest whole dollar. Use commas to separate thousands.

Answer: $194,680