Gem Systems

Gem Systems uses an activity-based costing system. The company has gathered the following information concerning various cost pools and activity drivers;

Activity cost pool	Normal Cost	Activity cost driver	Activity level
Material Handling	$25,000	Number of moves	5,000
Machine setups	$35,000	Number of setups	10,000
Inspections	$ 5,000	Number of Inspections	2,500
Electricity Costs	$15,000	Kilowatt Hours	5,000

The following data was collected and is specific to Job 150.

Direct Material Cost	$40,000
Direct Labor Cost	25,000 (@ $10 per hour)
Number of machine setups	3,000
Number of material moves	1,000
Number of inspections	100
Kilowatt hours of electricity used	1,000
Units produced	5,000

____ 12. Refer to Gem Systems. Calculate the unit cost for the Electricity Costs activity cost pool.

a.	$15.00
b.	$ 3.50
c.	$ 3.00
d.	$ 5.00

____ 13. Refer to Gem Systems. What is the amount of electricity cost allocated to Job 150?

a.	$ 1,000
b.	$15,000
c.	$ 3,000
d.	$ 5,000

____ 14. Refer to Gem Systems. What is the amount of machine handling cost allocated to Job 150?

a.	$ 1,000
b.	$ 5,000
c.	$25,000
d.	None of the above

____ 15. Refer to Gem Systems. Calculate the unit cost for the Material Handling activity cost pool.

a.	$5.00
b.	$25.00
c.	$10.00
d.	$ 3.50

____ 16. Refer to Gem Systems. Calculate the product cost of one unit of Job 150.

a.	$11.74
b.	$13.00
c.	$ 8.74
d.	$16.74