Assume the following information for a company that produced and sold 10,000 units during its first year of operations: Per Unit Per Year Selling price $ 200 Direct materials $ 67 Direct labor $ 50 Variable manufacturing overhead $ 10 Fixed manufacturing overhead $ 300,000 Using variable costing, what is the companys unit product cost? Multiple Choice $127 $147 $117 $157

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	5
Customer service (number of phone calls)	20	12

How much cost would be assigned from the Deliveries activity to Customer B?

Multiple Choice

• $775

• $10

• $1,050

• $275