Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing system with three activity cost pools. The activity rate for the Size-Related activity cost pool is $1.25 per guest. The greater the number of guests, the larger the cake.) The activity rate for the Complexity-Related cost pool is $3721 per tier (Cakes with more tiers are more complex.) Finally, the activity rate for the Order-Related activity cost pool is $78.95 per order (Each wedding involves one order for a cake.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately. Data concerning two recent orders appear below: Ericson Haupt Wedding Wedding Number of reception guests 73 199 Number of tiers on the cake Cost of purchased decorations for cake $18.90 $81.35 Assuming that all of the costs listed above are avoidable costs in the event that an order is turned down what amount would the company have to charge for the Ericson wedding cake to just break even? . Multiple Choice $1890 578.95 5575.58 552399 Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts-equipment depreciation and supervisory expense--to three activity cost pools--Machining Order Filling, and Other-based on resource consumption Data to perform these allocations appear below. Overhead costs: Equipment depreciation Supervisory expense $95, eee $10,300 Distribution of Resource Consumption Across Activity Cost Pools: Equipment depreciation Supervisory expense Activity Cost Pools Machining Order Filling 0.60 0.30 0.60 0.20 other 0.10 0.2 In the second stage, Machining costs are assigned to products using machine-hours (MHS) and Order Filing costs are assigned to products using the number of orders. The costs in the other activity cost pool are not assigned to products Help Save & Exit Submit Supervisory expense 0.60 0.20 In the second stage, Machining costs are assigned to products using machine-hours (MHS) and Order Filling costs are assigned to products using the number of orders. The costs in the other activity cost pool are not assigned to products, Activity MHS (Machining) 6,180 14,900 21,080 Orders (Order Filling) 197 927 Product wi Product Me Total 1,124 Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins, Sales and Direct Cost Data: Product W1 Product Me Help Sove & Exit Submit Sales (total) Direct materials (total) Direct labor (total) Product W1 $84,300 $33,600 $24, eee Product MO $65,500 $18,500 $32,100 What is the overhead cost assigned to Product W1 under activity-based costing? (Round your intermediate calculations to 2 decimal places and your final answer to nearest whole dollar amount.) Multiple Choice O 0 $5.356 O O $18.540 Multiple Choice 55,356 S18,540 S63,180 O 523,896