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4. EDHC does an Activity Based Cost Analysis and identifies 3 major activities. Here is an analysis of their findings Expected Activity Activity/Measure Labor related/direct
4. EDHC does an Activity Based Cost Analysis and identifies 3 major activities. Here is an analysis of their findings Expected Activity Activity/Measure Labor related/direct labor hrs Machine related/machine hrs Production orderso. of orders Overhead S580,000 00Small 6,00020,000 200 Total 10,000 direct labor hrs 26,000 machine hrs 300 orders 4,000 6,000 S104,000 $96,000 100 S780,000 Under an Activity Based Costing System, what is the cost of one small doll house (rounded to nearest dollar)? a. $45 b. $94 c. $110 d. S92 e. $30 5. At a break-even point of 400 units sold, variable expenses were S4,000 and fixed expenses were $2,000. What will the 401st unit sold contribute to profit? a. $O b. S5 c. $10 d. $15 e. Cannot be determined from information provided 6. Danny's Consulting Company (DCC) bills clients by the hour. DCC bills clients $250 per hour of consulting provided. DCC has variable costs of S100 per hour. DCC has fixed costs of $300,000. How many hours must DCC bill to clients to break even? a. Cannot be determined with information provided. b. 1,200 c. 3,000 d. 2,500 e. 2,000
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