5)

a company requires 800 kg of raw material Z for a contract it is evaluating. It has 400 kg of material Z in stock which were purchased last month. Since then the purchase price of material Z has risen by 8 per cent to 27 per kg. Raw material Z is used regularly by the company in normal production. What is the total relevant cost of raw material Z to the contract?

a.

16 200

b.

21 600

c.

15 336

d.

18 900

6)

x Companys activity cost pools is inspecting, with estimated overhead of $300,000. Matheny produces throw rugs (700 inspections) and area rugs (1,300 inspections). How much of the inspecting cost pool should be assigned to throw rugs?

a.

$120,000

b.

$105,000

c.

$70,000

d.

$125,000