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Bradford, Inc., expects to sell 10,000 ceramic vases for $21.00 each. Direct materials costs are $2.00, direct manufacturing labor is $12.00, and manufacturing overhead is
Bradford, Inc., expects to sell 10,000 ceramic vases for $21.00 each. Direct materials costs are $2.00, direct manufacturing labor is $12.00, and manufacturing overhead is $3.00 per vase. The following inventory levels apply to 2019 Direct materials Work-in-process inventory Finished goods inventory Beginning inventory 6,000 units O units 200 units Ending inventory 6.000 units 0 units 700 units How many ceramic vases should be produced in 2019? OA. 10,000 vases OB. 16,000 vases OC. 10,500 vases OD. 9,500 vases Extreme Manufacturing Company provides the following ABC costing information: Activities Account inquiry Account billing Account verification accounts Correspondence letters Total costs Total Costs $800,000 $280,000 $112,500 $38,500 $1,231,000 Activity - cost drivers 16,000 hours 7,000,000 lines 60,000 accounts 7,000 letters The above activities are used by Departments A and B as follows: Account inquiry hours Account billing lines Account verification accounts Correspondence letters Department A 2,800 hours 500 000 lines 8,000 accounts 1,400 letters Department B 4,300 hours 350,000 lines 6,000 accounts 1,800 letters How much of the account inquiry cost will be assigned to Department A? O A. $400,000 OB. $140,000 OC. $215,000 OD. $800,000
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