Please mind helping me with these questions

1. Arrojo Corporation manufactures two products: Product X71B and Product C91I. 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 X71B and C91I.

Activity Cost Pool	Activity Measure	Total Cost		Total Activity
Machining	Machine-hours	$	275,000	11,000	MHs
Machine setups	Number of setups	$	210,000	350	setups
Product design	Number of products	$	48,000	2	products
Order size	Direct labor-hours	$	300,000	10,000	DLHs

Activity Measure	Product X71B	Product C91I
Machine-hours	5,000	6,000
Number of setups	220	130
Number of products	1	1
Direct labor-hours	6,000	4,000

Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product X71B?

rev: 03_17_2018_QC_CS-119201

Multiple Choice

$416,500

$499,800

$333,200

$372,000

2. Scheuer Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts--equipment expense and indirect labor--to three activity cost pools--Processing, Supervising, and Other--based on resource consumption. Data to perform these allocations appear below:

Overhead costs:
Equipment expense	$	55,000
Indirect labor	$	7,000

Distribution of Resource Consumption Across Activity Cost Pools:

	Activity Cost Pools
	Processing	Supervising		Other
Equipment expense	0.10	0.70		0.20
Indirect labor	0.50	0.10		0.40

In the second stage, Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:

Activity:

	MHs (Processing)	Batches (Supervising)
Product Q1	1,000	700
Product S6	19,000	1,300
Total	20,000	2,000

Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins.

Sales and Direct Cost Data:

	Product Q1		Product S6
Sales (total)	$	134,600	$	186,300
Direct materials (total)	$	76,000	$	64,800
Direct labor (total)	$	40,800	$	78,400

How much overhead cost is allocated to the Processing activity cost pool under activity-based costing in the first stage of allocation?

Multiple Choice

$3,500

$5,500

$9,000

$13,800

3. Goertz Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow:

Overhead costs:
Equipment depreciation	$	51,000
Supervisory expense	$	3,000

Distribution of Resource Consumption Across Activity Cost Pools:

	Activity Cost Pools
	Machining	Order Filling		Other
Equipment depreciation	0.40	0.10		0.50
Supervisory expense	0.20	0.30		0.50

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 data for the company's two products follow:

Activity:

	MHs (Machining)	Orders (Order Filling)
Product J3	9,100	100
Product F7	900	900
Total	10,000	1,000

Finally, the costs of Machining and Order Filling are combined with the following sales and direct cost data to determine product margins.

Sales and Direct Cost Data:

	Product J3		Product F7
Sales (total)	$	145,200	$	90,700
Direct materials (total)	$	81,400	$	38,600
Direct labor (total)	$	37,700	$	42,400

What is the product margin for Product F7 under activity-based costing?

Multiple Choice

$2,410

$2,710

$10,600

$9,700