9)

younger, Inc. manufactures recliners for the hotel industry. It has two products, the Heater and the Massager, and total overhead is $3,160,000. The company plans to manufacture 400 Heaters and 100 Massagers this year. In manufacturing the recliners, the company must perform 600 material moves for the Heater and 400 for the Massager; it processes 900 purchase orders for the Heater and 700 for the Massager; and the companys employees work 1,400 direct labor hours on the Heater product and 3,400 on the Massager. Youngers total material handling costs are $2,000,000 and its total processing costs are $1,160,000. Using ABC, how much overhead would be assigned to the Heater product?

a.

$1,307,500

b.

$2,238,332

c.

$1,852,500

d.

$1,580,000

10)

one of Stine Companys activity cost center is machine setups, with estimated overhead of $360,000. Stine produces sparklers (300 setups) and lighters (700 setups). How much of the machine setup cost center should be assigned to sparklers?

a.

$360,000

b.

$108,000

c.

$144,000

d.

$252,000