Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 8,000 units and of Product B is 6,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows:

Estimated

Expected Activity

Activity Cost Pool

Cost

Product A

Product B

Total

Activity 1

20,000

100

400

500

Activity 2

37,000

800

200

1,000

Activity 3

91,200

800

3,000

3,800

The cost per unit of Product A under activity-based costing is closest to:

2.40.

3.90.

10.59.

6.60.

Bridget Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 2,000 units and of Product B is 3,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows.

Estimated

Expected Activity

Activity Cost Pool

Cost

Product A

Product B

Total

Activity 1

9,000

400

350

750

Activity 2

12,000

100

400

500

Activity 3

48,000

400

1,200

1,600

The cost per unit of Product A under activity-based costing is closest to:

6.00.

9.60.

8.63.

13.80.

Angel Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:

Activity Cost Pools (and Activity Measures

Estimated

Overhead Cost

Machine related (machine-hours)

81,600

Batch setup (setups).

387,000

General factory (direct labour-hours).

274,800

Expected Activity

Activity Cost Pools

Total

Product X

Product Y

Machine related

8,000

3,000

5,000

Batch setup

10,000

2,000

8,000

General factory

12,000

7,000

5,000

48.40

38.70

74.30

193.50

Angel Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:

Activity Cost Pools (and Activity Measures

Estimated

Overhead Cost

Machine related (machine-hours)

81,600

Batch setup (setups).

387,000

General factory (direct labour-hours).

274,800

Expected Activity

Activity Cost Pools

Total

Product X

Product Y

Machine related

8,000

3,000

5,000

Batch setup

10,000

2,000

8,000

General factory

12,000

7,000

5,000

Assuming that actual activity turns out to be the same as expected activity, the total amount of overhead cost allocated to Product X would be closest to:

371,700

387,000

268,300

149,000

Forrest Florist specializes in large floral bouquets for hotels and other commercial spaces. The company has provided the following data concerning its annual overhead costs and its activity based costing system:

Overhead costs:

Wages and salaries

70,000

Other expenses.

40,000

Total

110,000

Distribution of resource consumption:

Activity Cost Pools

Making Bouquets

Delivery

Other

Total

Wages and salaries

55%

35%

10%

100%

Other expenses

45%

25%

30%

100%

The 'Other' activity cost pool consists of the costs of idle capacity and organisation-sustaining costs.

The amount of activity for the year is as follows:

Activity Cost Pool

Activity

Making bouquets

20,000 bouquets

Delivery

1,000 deliveries

What would be the total overhead cost per delivery according to the activity based costing system? In other words, what would be the overall activity rate for the deliveries activity cost pool? (Round your answer to the nearest whole pence).

27.50

38.50

33.00

34.50