Ben Corporation manufactures two products: Product E05G and Product L64Y. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products E05G and L64Y. Activity Cost Pool Activity Measure Total Cost Total Activity Machining Machine-hours $ 285,000 15,000 MHs Machine setups Number of setups $ 180,000 300 setups Product design Number of products $ 64,000 2 products Order size Direct labor-hours $ 350,000 10,000 DLHs Activity Measure Product E05G Product L64Y Machine-hours 12,000 3,000 Number of setups 170 130 Number of products 1 1 Direct labor-hours 3,000 7,000 Using the plantwide overhead rate, the percentage of the total overhead cost that is allocated to Product E05G is closest to: A. 27.87% B. 19.00% C. 30.00% D. 50.00% 1.5 points QUESTION 4 Mayeux Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity-based costing system: Costs: Wages and salaries $ 320,000 Depreciation 160,000 Utilities 240,000 Total $ 720,000 Distribution of resource consumption: table of assessment How much cost, in total, would be allocated in the first-stage allocation to the Setting Up activity cost pool? A. $360,000 B. $336,000 C. $288,000 D. $348,000 1.5 points QUESTION 5 Leaper Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 40,000 machine-hours Order processing 200 orders Other Not applicable The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. The company has provided the following data concerning its costs: Wages and salaries $ 360,000 Depreciation 140,000 Occupancy 160,000 Total $ 660,000 The distribution of resource consumption across activity cost pools is given below: ABC Allocation Table The activity rate for the Order Processing activity cost pool is closest to: A. $1,485 per order B. $1,540 per order C. $1,465 per order D. $1,320 per order 1.5 points QUESTION 6 Nick Company has two products: A and B. The company uses activity-based costing. The total cost and activity for each of the company's three activity cost pools are as follows: Total Activity Activity Cost Pool Total Cost Product A Product B Total Activity 1 $ 32,600 700 300 1,000 Activity 2 $ 17,600 600 200 800 Activity 3 $ 52,500 400 100 500 The activity rate under the activity-based costing system for Activity 3 is closest to: A. $525.00 B. $44.65 C. $105.00 D. $205.00 1.5 points QUESTION 7 Data concerning three of the activity cost pools of Salcido LLC, a legal firm, have been provided below: Activity Cost Pool Total Cost Total Activity Researching legal issues $ 20,480 640 research hours Meeting with clients $ 1,182,239 7,253 meeting hours Preparing documents $ 91,840 5,740 documents The activity rate for the "meeting with clients" activity cost pool is closest to: A. $95 per meeting hour B. $61 per meeting hour C. $163 per meeting hour D. $1,182,239 per meeting hour 1.5 points QUESTION 8 Dobles Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 228,060 18,000 machine-hours Processing orders $ 34,068 1,200 orders Inspection $ 125,560 1,720 inspection-hours The company makes 420 units of product D28K a year, requiring a total of 460 machine-hours, 80 orders, and 10 inspection-hours per year. The product's direct materials cost is $48.96 per unit and its direct labor cost is $25.36 per unit. According to the activity-based costing system, the average cost of product D28K is closest to: A. $95.34 per unit B. $93.60 per unit C. $74.32 per unit D. $89.93 per unit 2 points (Extra Credit) QUESTION 9 Kulka Corporation manufactures two products: Product F82D and Product T05P. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products F82D and T05P Activity Cost Pool Activity Measure Total Cost Total Activity Machining Machine-hours $ 180,000 9,000 MHs Machine setups Number of setups $ 125,000 250 setups Product design Number of products $ 44,000 2 products Order size Direct labor-hours $ 260,000 10,000 DLHs Activity Measure Product F82D Product T05P Machine-hours 5,000 4,000 Number of setups 160 90 Number of products 1 1 Direct labor-hours 4,000 6,000 Using the ABC system, how much total manufacturing overhead cost would be assigned to Product T05P? A. $156,000 B. $303,000 C. $147,000 D. $304,500 1.5 points QUESTION 10 Fletes Corporation manufactures two products: Product O95C and Product M31N. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products O95C and M31N. Activity Cost Pool Activity Measure Total Cost Total Activity Machining Machine-hours $ 207,000 9,000 MHs Machine setups Number of setups $ 140,000 350 setups Product design Number of products $ 98,000 2 products Order size Direct labor-hours $ 340,000 10,000 DLHs Activity Measure Product O95C Product M31N Machine-hours 6,000 3,000 Number of setups 190 160 Number of products 1 1 Direct labor-hours 4,000 6,000 Using the ABC system, how much total manufacturing overhead cost would be assigned to Product O95C? A. $392,500 B. $136,000 C. $399,000 D. $263,000 1.5 points QUESTION 11 Annika Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 4,000 units and of Product B is 1,000 units. There are three activity cost pools, with total cost and activity as follows: Total Activity Activity Cost Pool Total Cost Product A Product B Total Activity 1 $ 18,000 700 300 1,000 Activity 2 $ 24,000 500 100 600 Activity 3 $ 60,000 800 400 1,200 The activity-based costing cost per unit of Product A is closest to: A. $20.40 B. $10.00 C. $18.15 D. $17.00 2 points (Extra Credit) QUESTION 12 Leber 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) $ 5.65 per DLH Processing batches Number of batches $ 180.00 per batch Processing orders Number of orders $ 68.55 per order Serving customers Number of customers $ 2,423.00 per customer The cost of serving customers, $2,423.00 per customer, is the cost of serving a customer for one year. Solecki Corporation buys only one of the company's products. The details of last year's purchases of this product are listed below: Number of units purchased 900 units Number of batches 4 batches Number of orders 1 order Direct labor-hour requirement 0.20 DLHs per unit Selling price $ 30.00 per unit Direct materials cost $ 6.65 per unit Direct labor cost $ 3.85 per unit According to the ABC system, the total overhead cost for this customer this past year was closest to: A. $1,805.55 B. $4,228.55 C. $13,678.55 D. $9,450.00 1.5 points