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the following information to answer Questions 14-20. Moonbeam manufactures medical imaging equipment. The company has identified several overhead activities and the activity drivers for the

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the following information to answer Questions 14-20. Moonbeam manufactures medical imaging equipment. The company has identified several overhead activities and the activity drivers for the coming year: Expected Cost $60,000 $45,000 $90,000 To be calculated Activity Setting up Inspecting Grinding Servicing Activity Driver Number of setups Inspection hours Machine hours Number of parts Activity Capacity 300 4,500 18,000 50,000 The company produces several different scanners used by hospitals and clinics. The cost information for two types of these scanners are as follows: ET Scanner A Scanner B $950 $600 Direct materials Direct labour Units completed No. of setups Inspection hours $850 $600 100 50 1 4 30 40 Machine hours 20 Parts used 20 The company's normal activity is 20,000 direct labour hours. Each batch uses 50 hours of direct labour. Upon investigation, you discover that the Servicing Area employs one worker, who spends 80% of her time on the Servicing activity and 20 % of her time on inspecting products. Her salary is $40,000. Inspecting Activity has taken into account the worker's salary but not the Servicing Activity. In addition, Servicing also uses a forklift, at a cost of $8,000 per year for amortization and fuel. The forklift is used only for Servicing activities. Required: Choose the best answer for each of the following multiple-choice questions based on the above information for Moonbeam. 14. The amount of cost assigned to the Servicing activity is A. $16,000 B. $36,000 C. $40,000 D. $46,000 E. $50,000 15. The activity rate for Servicing is A. $0.80 per part B. $0.72 per part C. $0.812 per part D.$0.32 per part E. $0.50 per part d by the 16. The activity rate for setting up equipment is A. $10 per setup B. $20 per setup C. $30 per setup D. $100 per setup E. $200 per setup 17. The activity rate for grinding is A. $18,000 per machine hour B. $1.80 per part C. $5.00 per machine hour D. $45,000 per machine hour E. $2.00 per part 18. The activity rate for inspecting is A. $7,5000 per inspection hour B. $20 per inspection hour C. $12 per inspection hour D. $10 per inspection hour E. $8 per inspection hour 19. The unit cost for Scanner A, using direct labour hours to assign overhead is A. $42.56 B. $20.38 C. $14.50 D. $12.60 E. $10.00 20. The unit cost for Scanner A, using activity rates, is A. $30.28 B. $21.43 C. $20.70 D. $17.04 E. $18.06 10

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