QUESTION 9 2 points Save Answer Rosie Company has two divisions, Division A and Division B. Rosie Company uses an activity-based costing system to allocate overhead. Rosie company has identified three cost drivers. Data about the cost drivers for the most recent year are below. Cost drivers Cost pool x Y z Total Number of units of driver per year 1,000 500 20 $100,000 75,000 60,000 $235,000 The following data relate to cost driver activity within the two divisions during the most recent year. Division A Cost Driver X events Cost Driver y events Cost Driver Z events 500 300 6 How much overhead should be allocated to Division A? QUESTIONS 2 points Save Answer Solar Salt has determined that its total manufacturing cost of $700,000 is a mixture of unit-level costs, batch-level costs, and product line costs. Solar Salt has assembled the following information concerning the manufacturing costs and the driver used to allocate the costs in each activity pool (units, batches, and lines respectively). Total Manufacturing Costs Agricultural Products Retail Products Unit-level costs $210,000 7,000 units 10.000 units Batch-level costs 280,000 40 batches 80 batches Product line costs 210,000 7 lines 13 lines $700,000 Revenues for the Agricultural Products totaled $600,000. Revenue for Retail Products totaled $350,000. How much will gross profit in the agriculture division be if Solar Salt adopts an activity-based costing system? (Please round your answer to the nearest dollar at the end of your answer.) QUESTION 6 2 points Save Answer Vroom-Vroom manufactures miniature cars and has determined that its total manufacturing cost of $1,500,000 is a mixture of unit-level costs, product-level costs, and facility-level costs. Vroom-Vroom has assembled the following information concerning the manufacturing costs and the driver used to allocate the costs in each activity pool (units and product lines). Facility-level costs are not allocated to production. Total Manufacturing Costs Collector Products Retail Products Unit-level costs $600,000 300,000 units 700,000 units Product-level costs 700,000 20 lines 28 lines Facility costs 200,000 NA NA $1,500,000 How much cost would be allocated to the Retail division under an activity-based costing system that reflects an appropriate hierarchy? (Please round to the nearest dollar at the end of your calculations) QUESTION 2 2 points Save Answer Paul's Pipes manufactures custom pipe fittings. Total manufacturing overhead costs were $10,000,000. In the past Paul allocated costs using a simple absorption costing system using machine-hours as the driver. However, Paulis now considering switching to an activity-based costing system. He has determined that the total manufacturing overhead cost is a mixture of machine-level, unit-level, product-level, and batch-level costs. Paul has prepared the following information regarding manufacturing costs and driver usage. Total Manufacturing Expected Driver Usage Overhead Costs Machine-level costs $4.000.000 40,000 hours Unit-level costs 2,000,000 8,000,000 units Batch-level costs 3,000,000 1,500 batches Product-line costs 1,000,000 40 lines 10,000,000 The Household Plumbing division used 14,000 machine hours, produced 1,000,000 units, ran 42 batches, and encompasses 6 product lines. What was the reported overhead cost applied to the Household Plumbing division under the old system
