Question 1: Maxx Inc. has provided the following data from its activity based costing system

Activity Cost Pools Total Cost Total Activity

Designing Products $383,300 Z6,530 product design hours

Setting up batches $52,678 7366 batch set up

Assembling products $25,122 4,108 assembly hours

The activity rate for the designing products activity cost pool is?____________

Question 2.Sasha company allocates the estimated $184,900 of its accounting department costs department since the accounting department support s the other tow departments payroll accounts payable functions. The costs will be allocated based on the number of employeesinformation regarding cots and employees follows:

Department Employees

Accounting 4

Production 40

Sales 11

How much of the accounting department costs will be allocated to the production?

Question 3. Medusa Company allocates costs from the payroll department (S1)and the maintenance department(S2) to the (P1), finishing (p2), and packaging (p3) departments. Payroll department costs are allocated based on the number of employees in the department and maintenance department costs are allocated based on the number of square footage, the production department occupies within the factory. Information about the departments is prescribed below:

Department cost # of employees number of square fee occupied

Payroll (S1) 139,000 2 2,000

Maintenance( S2) $220,000 8 $64,000

Molding (P1) $ 73 $100,000

Finishing (P2) 50 $60,000

Packaging (P3) 25 $40,000

Medusa uses the direct method to allocate costs. Round all answers to the nearest dollar. What amount of the payroll deparment costs will be allocated to the molding department?

Question 4: Baller Financial is a banking services company that offers many different types of checking accounts. The bank has recently adopted an activity based costing system to assign csots to their various types of checking accounts. The following data relate to the money market checking accounts, one of the popular checking accounts, and the ABC cost pools: Annual numbers of accounts = 52,000 accounts Checking account pools

Cost Pool Cost Cost Drivers

Returned checks cost $2,890,000 Number of returned checks

Checking account reconciliation 54,000 # of account reconciliation requests

New Account setup 650,000 Number of new accounts

Copies of cancelled check 388,000 Number of cancelled check

Online banking web site maintenance 183,000 Per product group (type of account)

Annual activity information relation to cost drivers

Cost Pool All Products Money Market Checking

Returned checks 190,000 18,000

Check Conciliation 388,000 420

New Accounts 59,000 15,000

Cancelled Check copy requests 90,000 60,000

Website costs 6 types of accounts 1

Calculate the overhead cost per account for the money market______________

Question 5. The manasas Company has 55 obsolete keyboards that are carried in inventory at a cost of $9,6000. If these keyboards are upgraded at a cost of $7,600, they could be sold for $19,100. Alternatively. The keyboards could be sold as is for $7,900. What is the net advantage or disadvantage of reworking the keyboard?

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Question 6: Ritz Company sells fine collectibles statues and has implemented activity-based costing. Costs in the shipping department have been divided into three costs pools. The first pool contains costs that are related to packaging and shipping and Rand has determined that the number of boxes shipped is appropriate costs driver for these costs. The second cost pool is made up of costs related to the final inspection each item before it is shipped and the cost driver for this pool is the number of individuals items that are inspected and shipped. The final cost pool is used for general operations and supervision of the department and the cost driver is the number of shipments. Information about the department is summarized below:

Cost Pool Total Costs Cost Driver Annual Activity

Packaging/Shipping $166,800 # of boxes shipped 23,400 items

Final inspection $199,700 # of individual items shipped 99,400 items

General operations $80,100 # of orders 9,600

During the period, the Far East Sales office generated 658 orders for a total of 6,200 items. These orders were shipped in 1,460 boxes. What amount of shipping department costs should be allocated to these sales?

Question 7. Sosa Company has $39 per unit in variables costs and $1,900,000 per year in fixed costs. Demand is estimated to be 138,000 units. What is the price if a markup of 35% on total cost is used to determine the price?