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A company produces numerous blends of coffee, two of which are known as the French Blend and the tallan Blend. The company's ABC system divides
A company produces numerous blends of coffee, two of which are known as the French Blend and the tallan Blend. The company's ABC system divides total manufacturing overhead of $1,082,500 into four activity cost pools as shown below Activity Purchasing Nateriale handling Quality control Roasting Activity Measure Purchase orders Number of setups Number of batches Roasting hours Data regarding production of the French and Italian blends is as follows: Expected sales Batch size Setups Purchase order size French Blend 100,000 pounds 10,000 pounds 3 per batch 20,000 pounds 0.5 hours. Expected Activity 1,500 orders 1,800 setupa 600 batches 95,000 hours Italian Blend 5,000 pounds 1,250 pounds 3 per batch Roasting time per 100 pounds 500 pounds 0.5 hours sume the company uses activity-based costing. What is the activity rate for Quality Control? Estinsted Cost $330,000 $540,000 $210,000 $ 902,500 Multiple Choice $350 Assume a service company has implemented an activity-based costing system with four activities as shown below. Activity Coat Pool (Activity Heasure) Customer deliveries (Number of deliveries) Manual order processing (Number of manual orders) Electronic order processing (Number of electronic orders) Line item picking (Number of line items picked) Total Cost $400,000 $ 280,000 $ 150,000 $450,000 Total Activity 8,000 deliveries 5,000 manual orders: 15,000 electronic orders 375,000 line items The company serves numerous customers, two of which include Hospital A and Hospital B. The activity demands pertaining to these two customers are as follows: Activity Activity Measure Number of deliveries Number of manual orders Hospital A Hospital B 8 25 30 Number of electronic orders Number of line items picked 15 0 115 250 much total activity cost should be assigned to Hospital A? Multiple Choice $688
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