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7. What are the activity rates for the three activities under activity based costing? A company uses activity-based costing to determine the costs of its
7. What are the activity rates for the three activities under activity based costing? A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table Budgeted Activity Budgeted Cost Product A Product B Product C Activity Cost Pool Activity 1 $70,000 6,000 9,000 20,000 Activity 2 $45,000 7000 15.000 8.000 Activity 3 $82,000 2500 1.000 1.625 A. (1) $2.00; (2) $3.00; (3) $3.50. B. (1) $3.50; (2) $1.50; (3) $32,80. C. (1) $3.50; (2) $3.00; (3) $16.00 D. (1) $2.00; (2) $1.50; (3) $16.00. E. (1) $2.00; (2) $1.50; (3) $32.80. 8. Annual production and sales level of Product A1 is 8,480 units, and the annual production and sales level of Product B2 is 22,310 units. What is the approximate overhead cost per unit of Product A1 under activity-based costing? A company has two products: A1 and B2. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools Budgeted Activity Cost Pool Budgeted Cos Product All Product B2 Activity $48,000 1,200 418001 Activity 2 $63.000 2.240 4.760 $80,000 7.200 A. $8.00 B. $9.00 C. $10.00 D. $12.00 E. $4.00 Assume that a pet food manufacturer is considering adding two types of pet food to its existing product line. Research had determined that good demand exists for dog food in 40-pound bags and cat food in 1/ pound can The company identified the following partial list of activities, costs, and activity drivers expected for the next year: Activity Expected Costs Cost Driver S105.000 Number of batches made Handling materials Storage costs S820,000 Weight of finished product Dog Food Cat Food Production volume 100,000 units 200,000 units Batches made 200 batches 150 batches 9. Refer to the data above. What are the overhead rates used to apply material handling (MH) and storage costs (SC) using activity-based costing? A. MH $300/batch; SC $2.73/unit. B. MH $300/batch; SC $.20/lb. C. MH $525/ batch; SC $.205/unit. D. MH $700/batch; SC $.205/lb. E. MH $700/ batch; SC $8.20/lb
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