41.

Question Content Area

Longview Manufacturing Company manufactures two products (I and II). The overhead costs ($60,500) have been divided into three cost pools that use the following activity drivers:

Product	Number of Orders	Number of Labor Transactions	Labor Hours
I	15	50	500
II	10	150	2,000
Cost per pool	$12,500	$8,000	$40,000

Using functional-based costing, what is the amount of overhead cost to be assigned to Product II using labor hours as the allocation base?

a.$11,600

b.$43,500

c.$58,000

d.$48,400

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43.

Question Content Area

Davidian Company uses a joint process to produce Products W, X, Y, and Z. Each product may be sold at its split-off point or processed further. Additional processing costs of specific products are entirely variable. Joint processing costs for a single batch of joint products are $120,000. Other relevant data are as follows:

	Sales Value	Additional	Sales Value of
Product	at Split-Off	Processing Costs	Final Product
W	$ 40,000	$ 60,000	$ 80,000
X	12,000	4,000	20,000
Y	20,000	32,000	120,000
Z	28,000	20,000	32,000
	$100,000	$116,000	$252,000

Which product(s) should Davidian process further?

a.all except Z

b.none

c.all

d.X and Y

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66.

Question Content Area

At the end of Year 1, Diatomic Company implemented a new labor process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of Year 2, the president of the company wants an assessment of the changes on the company's productivity. The data needed for the assessment are as follows:

	Year 1	Year 2
Output	45,000	54,000
Output prices	$10	$10
Materials (lbs.)	22,500	22,950
Materials unit price	$3	$4
Labor (hrs.)	18,000	16,875
Labor rate per hour	$5	$5
Power (kwh)	11,250	14,625
Price per kwh	$2	$3

What is the partial operational measure for labor (rounded to two decimal places) for Year 1?

a.1.00

b.3.20

c.2.50

d.1.25