*Amazon makes a variety of products that it sells to other businesses. The company's activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that ABC system are listed below:

Activity Cost Pool	Activity Measure	Activity Rate
Supporting assembly	Direct labor-hours (DLHs)	$	3.20	per DLH
Processing batches	Number of batches	$	103.80	per batch
Processing orders	Number of orders	$	98.65	per order
Serving customers	Number of customers	$	1,488.00	per customer

The cost of serving customers, $1,488.00 per customer, is the cost of serving a customer for one year. Yousif Corporation buys only one of the company's products which Bertsche Enterprises sells for $25.00 per unit. Last year Yousif Corporation ordered a total of 900 units of this product in 3 orders. To fill the orders, 11 batches were required. The direct materials cost is $8.20 per unit and the direct labor cost is $7.65 per unit. Each unit requires 0.40 DLHs. According to the ABC system, the total cost of the activity "Supporting assembly" for this customer this past year was closest to:

Select one:

a.

$360.00

b.

$1.28

c.

$1,152.00

d.

$2,880.00

*Last year, Amazons variable costing net operating income was $63,400. Fixed manufacturing overhead costs released from inventory under absorption costing amounted to $10,700. What was the absorption costing net operating income last year?

Select one:

a.

$63,400

b.

$52,700

c.

$74,100

d.

$10,700

*Amazon Enterprises makes a variety of products that it sells to other businesses. The company's activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that ABC system are listed below:

Activity Cost Pool	Activity Measure	Activity Rate
Supporting assembly	Direct labor-hours (DLHs)	$	6.55	per DLH
Processing batches	Number of batches	$	138.20	per batch
Processing orders	Number of orders	$	52.60	per order
Serving customers	Number of customers	$	1,191.00	per customer

The cost of serving customers, $1,191.00 per customer, is the cost of serving a customer for one year. Latif Corporation buys only one of the company's products which Scholfield Enterprises sells for $15.60 per unit. Last year Latif Corporation ordered a total of 1,100 units of this product in 2 orders. To fill the orders, 7 batches were required. The direct materials cost is $7.85 per unit and the direct labor cost is $1.90 per unit. Each unit requires 0.10 DLHs. According to the ABC system, the total overhead cost for this customer this past year was closest to:

Select one:

a.

$2,984.10

b.

$1,793.10

c.

$10,725.00

d.

$13,709.10

*Amazon just inherited a 1958 Chevy Impala from its late Aunt Joop. Aunt Joop purchased the car 40 years ago for $8,000. Walsh is either going to sell the car for $10,000 or have it restored and then sell it for $22,000. The restoration will cost $9,000. Walsh would be financially better off by:

Select one:

a.

$6,000 to have the vehicle restored

b.

$11,000 to have the vehicle restored

c.

$3,000 to have the vehicle restored

d.

$9,000 to have the vehicle restored