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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
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 Activity Cost Pool Budgeted Cost Product A Product B Product C Activity 1 $ 86,000 7,600 10,600 21,600 Activity 2 $ 61,000 8,600 16,600 9,600 Activity 3 $114,000 4,100 2,600 3,225 How much overhead will be assigned to Product B using activity-based costing? Multiple Choice O $81.866.20 O $100.543.77 $76,190.90 $261,000.00 $86,000.00 Gray Company uses a plantwide overhead rate with machine hours as the allocation base. Use the following information to solve for the amount of machine hours estimated per unit of product Q. Direct material cost per unit of Q Total estimated manufacturing overhead Total cost per unit of Q Total estimated machine hours Direct labor cost per unit of Q $ 19 $116,000 $ 40 232,000 MH $ 20 Multiple Choice 33 MH per unit of Q o O 0.50 MH per unit of Q. 0.75 MH per unit of Q O 11.70 MH per unit of Q. 20 MH per unit of a Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 670,000 units are expected to be produced taking 0.70 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts? Estimated: Manufacturing overhead costs Direct labor hours Machine hours Department 1 $3, 121,500 157,000 DLH 257,000 MH Department 2 $1,541,000 257,000 DLH 182,000 MH Multiple Choice $11.26 per unit O O $7.43 per unit O O $5.99 per unit $12.15 per unit $10.62 per unit O A company uses activity-based costing 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: Activity Cost Pool Activity 1 Activity 2 Activity 3 Budgeted Activity Budgeted Cost Product A Product B Product C $72,000 6,200 9,200 20,200 $47,000 7,200 15,200 8,200 $86,000 2,700 1,200 1,825 Which of the following statements is true regarding this company's activity rates? Multiple Choice The activity rate under the activity-based costing system for Activity 2 is $2.02. The activity rate under the activity-based costing system for Activity 2 is $15.02. The activity rate under the activity-based costing system for Activity 2 is $1.54. The activity rate under the activity-based costing system for Activity 2 is $18.58 The activity rate under the activity-based costing system for Activity 2 is $2.89
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