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McCaskey Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 30,000 machine-hours Order processing 375

McCaskey Corporation uses an activity-based costing system with the following three activity cost pools:

Activity Cost Pool

Total Activity

Fabrication

30,000

machine-hours

Order processing

375

orders

Other

N/A

The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs.

The company has provided the following data concerning its costs:

Wages and salaries

$451,000

Depreciation

142,000

Occupancy

168,000

Total

$761,000

The distribution of resource consumption across activity cost pools is given below:

Activity Cost Pools

Fabrication

Order Processing

Other

Total

Wages and salaries

10%

80%

10%

100%

Depreciation

20%

15%

65%

100%

Occupancy

5%

75%

20%

100%

The activity rate for the Fabrication activity cost pool is closest to:

$6.34 per machine-hour

$2.73 per machine-hour

$0.34 per machine-hour

$1.94 per machine-hour

Spendlove Corporation has provided the following data from its activity-based costing system:

Activity Cost Pool

Total Cost

Total Activity

Assembly

$1,660,260

59,000

machine-hours

Processing orders

$69,455.70

2,290

orders

Inspection

$126,338

1,810

inspection-hours

The company makes 780 units of product S78N a year, requiring a total of 1,140 machine-hours, 64 orders, and 36 inspection-hours per year. The product's direct materials cost is $58.21 per unit and its direct labor cost is $14.69 per unit. The product sells for $124.00 per unit.

According to the activity-based costing system, the product margin for product S78N is: (Round your intermediate calculations to 2 decimal places.)

$39,858.00

$3,324.48

$5,837.28

$5,265.60

Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 10,000 units and of Product B is 8,500 units. There are three activity cost pools, with total cost and total activity as follows:

Total Activity

Activity Cost Pool

Total Cost

Product A

Product B

Total

Activity 1

$31,280

190

490

680

Activity 2

$47,040

880

240

1,120

Activity 3

$131,200

850

3,250

4,100

The activity-based costing cost per unit of Product A is closest to: (Round your intermediate calculations to 2 decimal places.)

$.79

$5.89

$11.28

$7.29

The controller of Ferrence Company estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data that are given below:

Wall Mirrors

Specialty Windows

Total expected units produced

14,300

1,900

Total expected material moves

1,430

1,800

Expected direct labor-hours per unit

14

4

The total materials handling cost for the year is expected to be $16,812.20.

If the materials handling cost is allocated on the basis of direct labor-hours, how much of the total materials handling cost would be allocated to the Wall Mirrors? (Round your intermediate calculations to 4 decimal places.)

$11,035

$9,386

$16,196

$14,363

A duration driver is:

A measure of the amount of time required to perform an activity.

An activity measure that is used for the life of the company.

An activity measure that is used for the life of an activity-based costing system.

A simple count of the number of times an activity occurs.

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