31)A company has two products: A1 and B2. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:

				Budgeted Activity
Activity Cost Pool	Budgeted Cost			Product A1			Product B2
Activity 1	$	57,000			2,100			5,700
Activity 2	$	72,000			3,140			5,660
Activity 3	$	98,000			8,100			1,700

Annual production and sales level of Product A1 is 9,380 units, and the annual production and sales level of Product B2 is 23,210 units. What is the approximate overhead cost per unit of Product B2 under activity-based costing?

Multiple Choice

$7.31

$8.18

$10.00

$13.01

$4.52

32)The first step in using the departmental overhead rate method requires that overhead be traced to each of the company's departments.

True or False

33)Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 566,667 units are expected to be produced taking .75 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts?

Estimated:	Department 1			Department 2
Manufacturing overhead costs	$	3,107,500		$	1,520,000
Direct labor hours		150,000	DLH		250,000	DLH
Machine hours		250,000	MH		175,000	MH

rev: 09_11_2017_QC_CS-99527

Multiple Choice

$11.57 per unit

$8.17 per unit

$5.61 per unit

$12.43 per unit

$10.89 per unit

34)Aztec Industries produces bread which goes through two operations, mixing and baking, before it is ready to be packaged. Next year's expected costs and activities are shown below.

	Mixing			Baking
Direct labor hours		400,000	DLH		80,000	DLH
Machine hours		800,000	MH		800,000	MH
Overhead costs	$	600,000		$	400,000

Compute Aztec's departmental overhead rate for the mixing department based on direct labor hours.

Multiple Choice

Top of Form

$1.50 per DLH.

$5.00 per DLH.

$0.75 per DLH.

$0.50 per DLH.

$2.08 per DLH.

35)Carver Packing Company reports total contribution margin of $58,560 and pretax net income of $24,400 for the current month. In the next month, the company expects sales volume to increase by 5%. The degree of operating leverage and the expected percent change in income, respectively, are:

Multiple Choice

2.5 and 13%

0.42 and 5%

0.42 and 2.2%

2.4 and 5%

2.4 and 12%

36)Flannigan Company manufactures and sells a single product that sells for $630 per unit; variable costs are $378. Annual fixed costs are $872,000. Current sales volume is $4,380,000. Flannigan Company management targets an annual pre-tax income of $1,305,000. Compute the dollar sales to earn the target pre-tax net income.

Multiple Choice

$5,949,600.

$5,442,500.

$3,628,333.

$3,195,333.

$2,762,333.

37)Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $450 and has a unit contribution margin of $180; the Adult model sells for $1,000 and has a unit contribution margin of $525; and the Recreational model sells for $1,150 and has a unit contribution margin of $575. The company's sales mix includes: 5 Youth models; 9 Adult models; and 6 Recreational models. If the firm's annual fixed costs total $6,650,000, calculate the firm's selling price per composite unit.

Multiple Choice

$1,630.

$18,150.

$11,325.

$2,550.

$15,600.

38)Mason Company manufactures and sells shoelaces for $3.00 per pair. Its variable cost per unit is $2.50. Mason's total fixed costs are $11,500. How many pairs must Mason Company sell to break even?

Multiple Choice

3,833.

4,600.

23,000.

38,333.

46,000.

39)Flannigan Company manufactures and sells a single product that sells for $650 per unit; variable costs are $390. Annual fixed costs are $880,000. Current sales volume is $4,400,000. Compute the break-even point in units.

Multiple Choice

4,231.

1,354.

3,385.

2,256.

1,128.

40)Flannigan Company manufactures and sells a single product that sells for $650 per unit; variable costs are $390. Annual fixed costs are $880,000. Current sales volume is $4,400,000. Compute the break-even point in dollars.

Multiple Choice

$2,024,000.

$2,200,000.

$1,468,923.

$4,402,256.

$2,904,000.