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Cottonwood, Inc. produces two different products (Standard and Luxury) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which
Cottonwood, Inc. produces two different products (Standard and Luxury) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The cost of Machining is $82,000, while the cost of Inspection is $3,400. Standard uses 34% of total machine hours and 80% of total batches. What is the total activity cost assigned to Standard? $30,600 $54,800 $2,720 $27,880 Hadley, Inc. manufactures a product that uses $16 In direct materials and $11 In direct labor per unit. Under the traditional costing system Hadley uses, manufacturing overhead applied to each unit is $22. However, Hadley is considering switching to an ABC system. Under the ABC system, the total activity cost would be $33. What is the total manufacturing cost per unit for Hadley under the ABC system? $27 $33 O $60 Sherman, Inc. manufactures chainsaws that sell for $250. Each chainsaw uses $19 in direct materials and $11 in direct labor per unit. Sherman has two activities: Machining, which is applied at the rate of $10 per machine hour, and Finishing, which is applied at the rate of $22 per batch. This month, Sherman made 250 chainsaws, using 412 machine hours In 40 batches. What is the total manufacturing cost for one chainsaw? (Do not round intermediate calculations.) $50 O $20 O $53 $30 Sherman, Inc. manufactures chainsaws that sell for $70. Each chainsaw uses $12 In direct materials and $7 In direct labor per unit. Sherman has two activities: Machining, which is applied at the rate of $5 per machine hour, and Finishing, which is applied at the rate of $23 per batch. This month, Sherman made 250 chainsaws, using 1,250 machine hours In 50 batches. What is the gross profit for one chainsaw? (Do not round intermediate calculations.) $71.60 O $21.40 $19.00 O $48.60
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