Question
6. Boesenhofer, Incorporated, manufactures and sells two products: Product N6 and Product N7. The company has an activity-based costing system with the following activity cost
6. Boesenhofer, Incorporated, manufactures and sells two products: Product N6 and Product N7. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Activity Cost Pools | Activity Measures | Estimated Overhead Cost | Expected Activity | ||
---|---|---|---|---|---|
Product N6 | Product N7 | Total | |||
Labor-related | DLHs | $ 345,060 | 2,100 | 5,000 | 7,100 |
Machine setups | setups | 128,534 | 600 | 800 | 1,400 |
Order size | MHs | 107,598 | 4,100 | 3,800 | 7,900 |
$ 581,192 |
The activity rate for the Machine Setups activity cost pool is closest to:
Multiple Choice
$73.57 per setup
$91.81 per setup
$26.24 per setup
$28.32 per setup
7. Vanvalkenburg, Incorporated, manufactures and sells two products: Product Q5 and Product J0. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Activity Cost Pools | Activity Measures | Estimated Overhead Cost | Expected Activity | ||
---|---|---|---|---|---|
Product Q5 | Product J0 | Total | |||
Labor-related | DLHs | $ 191,748 | 3,000 | 2,800 | 5,800 |
Production orders | orders | 70,536 | 300 | 500 | 800 |
Order size | MHs | 295,592 | 4,300 | 4,500 | 8,800 |
$ 557,876 |
The activity rate for the Order Size activity cost pool under activity-based costing is closest to:
Multiple Choice
$36.23 per MH
$68.48 per MH
$96.19 per MH
$33.59 per MH
8. Weirick, Incorporated, manufactures and sells two products: Product T8 and Product P4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Activity Cost Pools | Activity Measures | Estimated Overhead Cost | Expected Activity | ||
---|---|---|---|---|---|
Product T8 | Product P4 | Total | |||
Labor-related | DLHs | $ 109,500 | 2,000 | 1,000 | 3,000 |
Production orders | orders | 51,640 | 1,100 | 600 | 1,700 |
Order size | MHs | 807,690 | 3,400 | 3,600 | 7,000 |
$ 968,830 |
The total overhead applied to Product P4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
$756,050
$415,368
$470,096
$859,330
9. Wimpy Incorporated produces and sells a single product. The selling price of the product is $215.00 per unit and its variable cost is $66.65 per unit. The fixed expense is $405,099 per month.
The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
$1,306,771
$901,672
$587,100
$405,099
10. Majid Corporation sells a product for $145 per unit. The product's current sales are 41,300 units and its break-even sales are 32,625 units.
What is the margin of safety in dollars?
Multiple Choice
$3,736,965
$5,988,500
$4,730,625
$1,257,875
11. Mcdale Incorporated produces and sells two products. Data concerning those products for the most recent month appear below:
Product I49V | Product Z50U | |
---|---|---|
Sales | $ 51,000 | $ 56,000 |
Variable expenses | $ 13,900 | $ 26,760 |
The fixed expenses of the entire company were $39,050. The break-even point for the entire company is closest to:
Multiple Choice
$79,710
$62,984
$39,050
$46,1701
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