1. Company uses activity-based costing to determine product cost. The accounting department identified the following overhead activities, costs, and activity drivers for the coming year.

   Activity	Estimated cost	Activity driver	Activity capacity
   Setting up equipment	$120,000	Number of setups	300
   Ordering materials	90,000	Number of orders	9,000
   Maintaining machines	210,000	Machine hours	21,000
   Total overhead	$420,000

   The following actual results were collected for the production of Model X and Model Y during the year.

   	Model X	Model Y
   Units produced	8,000	4,000
   Prime costs	$160,000	$100,000
   Number of setups	200	100
   Number of orders	3,000	6,000
   Machine hours	12,000	9,000

   Determine the unit cost of Model X.

   Note: Give your answer using dollar signs, commas, and decimal points (cents).

   Example: $123.45

QUESTION 2

1. Company uses activity-based costing to determine product cost. The accounting department identified the following overhead activities, costs, and activity drivers for the coming year.

   Activity	Estimated cost	Activity driver	Activity capacity
   Setting up equipment	$120,000	Number of setups	300
   Ordering materials	90,000	Number of orders	9,000
   Maintaining machines	210,000	Machine hours	21,000
   Total overhead	$420,000

   The following actual results were collected for the production of Model X and Model Y during the year.

   	Model X	Model Y
   Units produced	8,000	4,000
   Prime costs	$160,000	$100,000
   Number of setups	200	100
   Number of orders	3,000	6,000
   Machine hours	12,000	9,000

   Determine the unit cost of Model Y.

   Note: Give your answer using dollar signs, commas, and decimal points (cents).

   Example: $123.45

QUESTION 3

1. Company produces a component that requires 2 hours of machining time at a cost of $15 per hour. By redesigning the component, the machine hours can be reduced by 15 minutes with no reduction in the quality of functionality of the component.

   Determine the nonvalue-added cost per unit of the component for the machining activity.

   Note: Give your answer using dollar signs, commas, and decimal points (cents).

   Example: $123.45

QUESTION 4

1. During the most recent shift, Company produced 50 units in 10 hours. Determine the velocity for the production process.

   		5 hours per unit
   		0.2 units per hour
   		5 units per hour
   		0.2 hours per unit

QUESTION 5

1. Company reported a cycle time of 12 minutes per unit. Determine the projected output if Company expects to operate for 160 hours for the next month.

   		13 units
   		800 units
   		1,920 units
   		115,200 units