Question
The next three questions are based on the following information: Product Price DM DLHs Hourly Wage-DL Shipping Cost Units Basic $180 $50 1 $10 $2
The next three questions are based on the following information: Product Price DM DLHs Hourly Wage-DL Shipping Cost Units Basic $180 $50 1 $10 $2 6,000 Pro $320 $80 2 $12 $4 4,000 Activity measures used Basic Pro $ 60 120 472,500 $ 6,000 10,000 360,000 $ 224,000 $ 240,000 4 A. $275.00 B. $126.75 C. $124.75 D. $130.75 E. None of the above 5 Batch-level activities include (choose the most complete answer): A. Machine Setup B. Special Processing C. Factory Supervision D. Machine Setup, Special Processing, and Factory Supervision E. Special Processing and Factory Supervision Customer Relation (10 customers) # of customers Machine Setup # of setups Special Processing Machine hours The company collected the data for ABC as follows: Activity Cost Pool Activity Measure Estimated OH cost The prices, direct material cost (DM), shipping cost and direct labor-hours (DLHs) are given below for one unit of the product, as well as the total units produced and sold. Under the ABC system, what is the unit product cost for Basic? (Choose the closest amount.) Alrex company is using an activity-based costing (ABC) system. The company produces and sells two products: Basic and Pro. The company consists of two departments: Production (where all manufacturing activities are taken) and Marketing (which engages in selling and admin activity only). The ABC system includes in unit product costs all costs easily associated with units. In addition, in the ABC system, there are four major indirect activities: Machine Setups, Special Processing, Factory Supervision, and Customer Relation.
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