Question
43. Consider the following production and cost data for two products, L and C: Product L Product C Contribution margin per unit $35 $40 Machine-hours
43.
Consider the following production and cost data for two products, L and C: |
Product L | Product C | |
Contribution margin per unit | $35 | $40 |
Machine-hours needed per unit | 7 hours | 5 hours |
The company can only perform 14,700 machine hours each period, due to limited skilled labor and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period? |
rev: 01_23_2015_QC_CS-5061
a. $103,340
b. $117,600
c. $132,300
d. $102,900
45.
Ollivier Corporation has an activity-based costing system with three activity cost pools-Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: |
Overhead costs: | |
Equipment expense | $73,000 |
Indirect labor | $6,900 |
Distribution of Resource Consumption Across Activity Cost Pools: | |||
Activity Cost Pools | |||
Processing | Supervising | Other | |
Equipment expense | 0.40 | 0.40 | 0.20 |
Indirect labor | 0.40 | 0.50 | 0.10 |
Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: |
Activity: | ||
MHs (Processing) | Batches (Supervising) | |
Product C4 | 10,900 | 920 |
Product L7 | 1,780 | 1,430 |
Total | 12,680 | 2,350 |
What is the overhead cost assigned to Product L7 under activity-based costing? (Round your intermediate calculations to 2 decimal places and your final answer to nearest whole dollar.) |
a. $24,348
b. $4,486
c. $34,326
d. $19,863
46.
HarrisCorporation produces a single product. Last year, Harris manufactured 26,030 units and sold 20,700 units. Production costs for the year were as follows: |
Fixed manufacturing overhead | $494,570 |
Variable manufacturing overhead | $210,843 |
Direct labor | $143,165 |
Direct materials | $192,622 |
Sales were $983,250, for the year, variable selling and administrative expenses were $120,060, and fixed selling and administrative expenses were $161,386. There was no beginning inventory. Assume that direct labor is a variable cost. |
The contribution margin per unit would be: (Do not round intermediate calculations.) |
a. $21.80 per unit
b. $26.50 per unit
c. $16.20 per unit
d. $20.70 per unit
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