I don't understand questions 4 and 5 for chapter 2; I know the answer is given, but am not sure how to get to the answer.

Chapter 4 1.Lynwood, Inc. produces two different products (Product A and Product X) 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 activity rate for Machining is $125 per machine hour, and the activity rate for Inspection is $500 per batch. Usage of the activity drivers are as follows: What is the amount of Inspection cost assigned to Product A? A. $7,50 0 B. $22,50 0 C. $30,00 0 D. $125,00 0 2. Washington, Inc. produces two different products (Product C and Product 2) 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 $750,000, while the cost of Inspection is $90,000. Usage of the activity drivers are as follows: What is the activity rate for Machining? A. $187.50 per machine hour B. $166.67 per machine hour C. $250.00 per machine hour D. $5750.00 per machine hour 3. 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 $500,000, while the cost of Inspection is $30,000. Standard uses 30% of total machine hours and 70% of total batches. What is the total activity cost assigned to Luxury? A. $7,50 0 B. $171,00 0 C. $375,00 0 D. $359,00 0 4. Jefferson, Inc. produces two different products (Product 5 and Product Z) 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 $500,000, while the cost of Inspection is $30,000. Usage of the activity drivers are as follows: What proportion of Inspection activity is used by Product Z? A. 25% B. 33% C. 67% D. 75% 5.Hadley, Inc. manufactures a product that uses $15 in direct materials and $5 in direct labor per unit. Under the traditional costing system Hadley uses, manufacturing overhead applied to each unit is $12. However, Hadley is considering switching to an ABC system. Under the ABC system, the total activity cost would be $25. What is the total manufacturing cost per unit for Hadley under the ABC system? A. $2 0 B. $2 5 C. $3 2 D. $4 5 6.Sherman, Inc. manufactures chainsaws that sell for $58. Each chainsaw uses $10 in direct materials and $3 in direct labor per unit. Sherman has two activities: Machining, which is applied at the rate of $2 per machine hour, and Finishing, which is applied at the rate of $20 per batch. This month, Sherman made 200 chainsaws, using 1,000 machine hours in 40 batches. What is the gross profit for one chainsaw? A. $1 3 B. $2 7 C. $3 1 D. $4 7 7.Parsons and Sons Woodworks manufactures baseball bats and wooden tops. Currently, Parsons and Sons makes 5,000 baseball bats each month. Each bat uses $1.00 in direct materials and $0.50 in direct labor. Parsons and Sons uses two activities in manufacturing the baseball bats: Cutting and Finishing. The cost associated with Cutting is $7,500 a month, allocated on the basis of direct labor hours. The cost associated with Finishing is $12,000 a month, allocated on the basis of batches. Baseball bats use 1/3 of the direct labor hours, and 40% of total batches. What is the total manufacturing cost for one baseball bat? A. $1.4 6 B. $1.5 0 C. $2.9 6 D. $3.9 4 Chapter 2 1. Manufacturing overhead was estimated to be $500,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $450,000, actual direct labor hours were 19,000. The amount of manufacturing overhead applied to production would be. A. $500,00 0 B. $450,00 0 C. $427,50 0 D. $475,00 0 2.Sawyer Company had the following information for the year: Sawyer Company used a predetermined overhead rate using estimated overhead of $320,000 and 8,000 estimated direct labor hours. Assume the only inventory balance is an ending Finished Goods balance of $9,000. How much overhead was applied during the year? A. $245,00 0 B. $273,00 0 C. $280,00 0 D. $320,000 3. Manufacturing overhead was estimated to be $400,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $415,000, and actual labor hours were 21,000. Which of the following would be correct? A. Overhead is underapplied by $15,000 B. Overhead is underapplied by $5,000 C. Overhead is overapplied by $5,000 D. Overhead is overapplied by $15,000 4. McGown Corp has the following information: Additional information for the year is as follows: Compute the direct materials used in production. A. $20,00 0 B. $30,00 0 C. $110,00 0 D. $90,00 0 5. McGown Corp has the following information: Additional information for the year is as follows: Compute the cost of goods manufactured (completed). A. $248,00 0 B. $242,00 0 C. $265,00 0 D. $235,00 0 ANSWERS: Ch 4 1.B, 2.A, 3.D, 4.A, 5.D, 6.C, 7.C Ch2 1.D, 2.C, 3.C, 4.D, 5.B