Paulis Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During February, the kennel budgeted for 2,500 tenant-days, but its actual level of activity was 2,480 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting: Fixed element per month Variable element per tenant-day Revenue $ 0 $ 35.30 Wages and salaries $ 2,500 $ 5.90 Food and supplies 400 13.80 Facility expenses 8,900 3.40 Administrative expenses 7,800 0.40 Total expenses $ 19,600 $ 23.50 Actual results for February: Revenue $ 85,654 Wages and salaries $ 16,992 Food and supplies $ 33,084 Facility expenses $ 16,682 Administrative expenses $ 8,732 The net operating income in the planning budget for February would be closest to: Multiple Choice $10,083 $9,900 $10,246 $9,664 Hails Corporation manufactures two products: Product Q21F and Product H44W. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Q21F and H44W. Activity Cost Pool Activity Measure Total Cost Total Activity Machining Machine-hours $ 195,000 13,000 MHs Machine setups Number of setups $ 90,000 150 setups Product design Number of products $ 64,000 2 products Order size Direct labor-hours $ 280,000 10,000 DLHs Activity Measure Product Q21F Product H44W Machine-hours 9,000 4,000 Number of setups 80 70 Number of products 1 1 Direct labor-hours 6,000 4,000 Using the ABC system, the percentage of the total overhead cost that is assigned to Product H44W is closest to: Multiple Choice 50.00% 17.81% 21.30% 39.11% Nissley Wedding Fantasy Corporation makes very elaborate wedding cakes to order. The owner of the company has provided the following data concerning the activity rates in its activity-based costing system: Activity Cost Pools Activity Rate Size-related $ 1.13 per guest Complexity-related $ 28.22 per tier Order-related $ 74.72 per order The measure of activity for the size-related activity cost pool is the number of planned guests at the wedding reception. The greater the number of guests, the larger the cake. The measure of complexity is the number of tiers in the cake. The activity measure for the order-related cost pool is the number of orders. (Each wedding involves one order.) 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: Tijerina Wedding Twersky Wedding Number of reception guests 49 126 Number of tiers on the cake 2 4 Cost of purchased decorations for cake $ 28.60 $ 54.64 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 Tijerina wedding cake to just break even? Multiple Choice $28.60 $215.13 $74.72 $260.31