Assume the following information for a company that produced 10,000 units during its first year of operations and sold 8,000 units and then produced 8,000 units and sold 10,000 units during its second year of operations: Per Unit Per Year Direct materials $ 75 Direct labor $ 50 Variable manufacturing overhead $ 10 Fixed manufacturing overhead $ 300,000 If the companys absorption costing net operating income during its second year of operations was $15,000, what was its variable costing net operating income or loss during its second year of operations? Garrison 17e Rechecks 2021-10-23 Multiple Choice $(37,500) $75,000 $137,500 $37,500

pt 2

Assume a companys activity-based costing system includes three activities with the following activity rates:

Activity Cost Pool	Activity Rate
Travel	$ 2	per mile driven
Deliveries	$ 55	per delivery
Customer service	$ 22	per phone call

Two of the companys many customers include Customer A and Customer B. These two customers consumed the companys activities as follows:

	Total Expected Activity
	Customer A	Customer B
Travel (number of miles driven)	300	250
Deliveries (number of deliveries)	15	7
Customer service (number of phone calls)	20	12

How much total activity cost would be assigned to Customer B from the companys three activities?

Multiple Choice

• $1,379

• $1,109

• $1,259

• $1,149