Question 25 (5 points)

Helens, Inc. produces two different products (Product A and Product Z) using two different activities: Machining, which uses machine hours as the activity driver, and Materials Handling, which uses number of batches as the activity driver.

The cost of Machining is $500,000, while the cost of Materials Handling is $30,000. Product A uses 20% of total machine hours and 75% of total batches. What is the total Machining cost assigned to Product A?

Question 25 options:

	$400,000
	$375,000
	$100,000
	$125,000

Question 26 (5 points)

Rainier, Inc. produces products using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver.

The activity rate for Machining is $125 per machine hour, and the activity rate for Inspection is $500 per batch.

Product A required 1,000 machine hours and 45 batches for inspections. Product X required 3,000 machine hours and 15 batches for inspections.

What is the total overhead assigned to Product X?

Question 26 options:

	$7,500
	$30,000
	$382,500
	$375,000

Question 27 (5 points)

Beige Company manufactures belts and has the following information:

Total fixed cost per month: $1,800

Variable cost per unit: $3.75

Sales price per unit: $8.00

During the current month they sold 500 belts.

What is the contribution margin and net operating income for the month?

Question 27 options:

	Both the contribution margin and net operating income are $325.
	Both the contribution margin and net operating income are $2,125.
	The contribution margin is $2,200 and the net operating income is $325.
	The contribution margin is $2,125 and the net operating income is $325.

Question 28 (5 points)

Granger Company makes golf bags and has the following historical information:

January: 600 bags, Total cost = $7,200

February: 650 bags, Total cost = $6,600

March: 450 bags, Total cost = $4,200

April: 250 bags, Total cost = $1,800

May: 200 bags, Total cost = $2,100

June: 400 bags, Total cost = $4,100

Using the high-low method, what do you calculate the variable cost per unit to be?

Question 28 options:

	$6.30
	$10
	$9.80
	$12