45. Miller Company has identified the following activities related to indirect production costs:

Activity Activity Costs Cost Drivers

Machine Setup $175,000 1,000 setup hours

Materials Handling $50,000 12,500 pounds of materials

Electric Power $20,000 20,000 kilowatt hours

Miller Company has obtained the following data concerning two products:

Product 1 Product 2

Number of units produced 4,000 20,000

Direct materials cost $20,000 $25,000

Direct labor cost $12,000 $20,000

Number of setup hours 120 160

Pounds of materials used 500 1,500

Kilowatt-hours 1,000 2,000

Using activity-based costing, what amount of machine setup cost is assigned to Products 1 and 2?

Product 1 Product 2

A) $12,000 $14,400

B) $31,000 $45,000

C) $21,000 $28,000

D) $21,500 $26,250

46. Goldman Company has identified the following activities related to indirect production costs:

Activity Activity Costs Cost Drivers

Machine Setup $150,000 1,000 setup hours

Materials Handling $80,000 10,000 pounds of materials

Electric Power $25,000 25,000 kilowatt hours

Goldman Company has obtained the following data concerning two products:

Product A Product B

Number of units produced 4,000 20,000

Direct materials cost $20,000 $25,000

Direct labor cost $12,000 $20,000

Number of setup hours 100 120

Pounds of materials used 500 1,500

Kilowatt-hours 1,000 2,000

Using activity-based costing, what is the total production cost per unit for Product B?

A) $8.00 per unit

B) $3.85 per unit

C) $3.75 per unit

D) $7.50 per unit

47. In activity-based costing systems, the system first accumulates indirect costs for ________, and then assigns these costs to ________.

A) cost objects; types of customers

B) products; departments

C) products; territories

D) activities; cost objects