The Aleutian Company produces two products, Rings and Dings. They are manufactured in two departmentsFabrication and Assembly. Data for the products and departments are listed below.

Product	Number of units	Labor hours per unit	Machine hours per unit
Rings	1,000	4	6
Dings	2,000	3	9

All of the machine hours take place in the Fabrication Department, which has an estimated overhead of $90,000. All of the labor hours take place in the Assembly Department, which has an estimated total overhead of $105,000. The Aleutian Company uses departmental overhead rates. The Fabrication Department uses machine hours for an allocation base, and the Assembly Department uses labor hours. What is the overhead cost per unit for Dings?

a.$65.25

b.$56.75

c.$64.50

d.$23.25

The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product and the total overhead information:

	Setups	Inspections	Assembly (dlh)
Small Lamps - 2,500 units	3,500	9,450	42,800
Desk Lamps - 8,100 units	7,000	15,750	42,800

Activity Pool	Activity Base	Budgeted Amount
Setups	10,500	$90,300
Inspections	25,200	$166,320
Assembly (dlh)	74,900	$329,560

Calculate the overhead per unit to be charged to small lamps.

a.$112.32

b.$67.39

c.$134.78

d.$202.18

Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below.

				Activity Cost							Activity Base
Procurement				$313,900							Number of purchase orders
Scheduling				$206,500							Number of production orders
Materials handling				$430,200							Number of moves
Product development				$790,300							Number of engineering changes
Production				$1,425,900							Machine hours
	Number of Purchase Orders			Number of Production Orders				Number of Moves			Number of Engineering Changes				Machine Hours			Number of Units
Disk drives	3,980			340				1,290			11				2,100			2,200
Tape drives	2,400			195				670			8				8,400			4,300
Wire drives	13,000			800				4,200			23				10,900			2,500

Determine the activity rate for procurement per purchase order.

a.$16.20

b.$66.63

c.$154.68

d.$235.13

The three most common cost behavior classifications are

a.variable costs, sunk costs, and opportunity costs

b.variable costs, period costs, and differential costs

c.variable costs, product costs, and sunk costs

d.fixed costs, variable costs, and mixed costs