BABA Inc. produces six products. Under their traditional costing system using a single volume-based cost driver, Product A costs $168.00 per unit. An analysis of activities and their costs revealed four cost drivers would be used under BABA's new activity-based costing (ABC) system. Onder ABC, the new cost of Product A was determined to be $178.00 per unit. FILL IN THE BLANK: The total amount of indirect costs assigned to Product A using the traditional method is the total amount of indirect costs assigned to Product A using ABC. greater than less than equal to None of the above Hostin Corporation manufactures two models of commercial lawn mowers, a standad and a deluxe model. The following activity and cost data have been compiled: Model Number of Number of Number of Direct Setups Components Labor Hours 3 30 650 Standard Deluxe 7 50 150 In the first stage allocation, $40,000 of overhead costs were allocated to the Setups activity pool and $120,000 of overhead costs were allocated to the Installing Components activity pool. Number of setups has been identified as the activity driver for Setups costs and number of components has been identified as the activity driver for Installing Components costs. What is the total amount of overhead cost assigned to the standard model under activity-based costing? $57.000 $103.000 $160,000 $130,000 None of the above NVDA Corp. provides the following data from its activity-based costing (ABC) system: Activity Pool Total Cost Total Activity 75,000 machine hours Assembly $1,200,000 Machine Setups $155,000 10,000 setups The company produces and sells 5,545 units of Product 55B per year, requiring a total of 10,000 machine hours and 1,000 setups per year. Direct materials cost for Product 55B is $25 per unit and direct labor cost is $60 per unit. The product sells for $299 per unit. According to the ABC system, the total product cost for Product 55B is: $175,500 $332,700 $646,825 $1,355,000 None of the above Alpha Technology produces two products: a laptop under the label Gamma Laptops and a desktop under the label Beta Computers. The company uses the following two activity pools to accumulate overhead costs: $2,945 Setting Up Equipment Machining $14.991 The controller has collected the expected annual prime costs for each product, the machine hours, the setup hours, and the expected production. Gamma $25,000 $20,000 Beta $10,000 $5,000 Direct materials Direct labor Expected production (in units) Machine hours Setup hours 3,355 2,389 2,000 850 80 75 If the controller allocates costs in the Setting Up Equipment pool based on setup hours and allocates costs in the Machining pool base on machine hours, then what will be the total overhead cost assigned to Beta Computers under activity-based costing? O $17.936 $10,520 O $1.425 $11,945 O None of the above
