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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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