Use the following to answer questions 13 and 14:

Simba Corporation manufactures three products.In the past, Simba has been using a traditional costing system in which manufacturing overhead was applied using a predetermined overhead rate of 150% of direct labor cost.Sensing the traditional costing system was distorting product costs; Simba is considering a switch to an activity-based costing system.Under activity-based costing, manufacturing overhead costs will be assigned to products using three activity cost pools.Information on these cost pools for next year is as follows:

Activity Cost Pool Expected Activity Estimated Overhead Cost

Machine Setups 400 Setups $150,000

Quality Control 1,500 Inspections $180,000

Production 30,000 Machine hours $480,000

Information on a per-unit basis for the three products produced by Simba follows:

Model #19 Model #36 Model #58

Direct material cost.............................................. $400 $540 $310

Direct labor cost.................................................... $810 $600 $220

Number of setups.................................................. 2 3 1

Number of inspections......................................... 1 3 1

Number of machine hours................................... 4 8 10

Question 13

1pts

Under the activity-based costing system proposed by Simba, the total per unit product cost for Model# 19 is:

$1,334

$1,210

$2,144

$934

Question 14

1pts

Under the traditional costing system currently used by Simba, the total per unit product cost for Model# 36 is:

$2,040

$1,440

$900

$1,140

Use the following to answer questions 15 through 18:

The Mrs. Potts Division is a segment of a large, multinational company.Mrs. Potts reported the following current year financial data.Sales were $16,640,000; net operating income was $399,360; and average operating assets were $4,000,000.The company's minimum required rate of return is 18%.

Question 15

1pts

Mrs. Potts turnover is closest to:

3.78

41.67

4.16

0.10

Question 16

1pts

Mrs. Potts margin is closest to:

2.4%

24.0%

26.4%

10.0%

Question 17

1pts

Mrs. Potts return on investment (ROI) is closest to:

10.0%

0.2%

1.9%

41.6%

Question 18

1pts

Mrs. Potts residual income is closest to:

negative $320,640

$1,119,360

negative $2,595,840

$399,360