Which of the following cost of quality categories represent the cost incurred to provide "warranty repair on a juicer?"

A. Internal failure costs

B. Appraisal costs

C. External failure costs

D. Prevention costs

_____________________

Cross Roads Manufacturing currently uses a traditional costing system. The company allocates overhead to its two products, Zips and Dees, using a predetermined manufacturing overhead rate based on direct labor hours. Here is data related to the company's two products:

	Zips	Dees
Direct materials per unit	$153	$112
Direct labor per unit	$55	$52
Direct labor hours per unit	3.5	22
Annual production	28,500	37,000

Information about the company's estimated manufacturing overhead for the year follows:

Activities	Activity measures	Estimated overhead cost
Supervision and maintenance	Direct labor hours	$3,214,250
Batch costs	Number of batches	$202,000
Engineering changes	Number of engineering hours	$186,950
Total estimated manufacturing overhead for the year		$3,603,200

Total estimated direct labor hours for the company for the year are

173,750

hours. The company is evaluating whether it should use an

activityminusbased

costing system in place of its traditional costing system. Additional information about production needed for the

activityminusbased

costing system follows:

	Zips	Dees	Total
Direct labor hours	99,750	74,000	173,750
Batches	2,350	300	2,650
Engineering hours	1,950	900	2,850

The amount of manufacturing overhead that would be allocated to one unit of Dees using an

activityminusbased

costing system would be closest to (Do not round intermediate calculations and round the final answer to the nearest cent.)

A.

$$39.21

B.

$22.15

C.

$50.91

D.

$97.38

_________________

in age Fun reproduces old minusfashioned style roller skates and skateboards. The annual production and sales of roller skates is900 units, while 1,700 skateboards are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Roller skates require 3.5 direct labor hours per unit, while skateboards require 3.25 direct labor hours per unit. The total estimated overhead for the period is $113,800. The company is looking at the possibility of changing to an activity minusbased costing system for its products. If the company used an activity minusbased costing system, it would have the following three activity cost pools:

		Expected activity
Activity cost pool	Estimated overhead cost	Roller skates	Skateboards	Total
Setup costs	$6,150	365	250	615
Engineering costs	$ 16 comma 200$16,200	420420	640	1,060
Maintenance costs	$ $91,450	2475	2,168	4,643

The overhead cost per skateboard using an

activityminusbased

costing system would be closest to (Round all answers to two decimal places.)

A. $49.51

B. $61.09

C. $44.98

D. $32.34

______________________

Which of the following cost of quality categories represents the cost incurred to "test toasters before a sale"?

A.

External failure costs

B.

Prevention costs

C.

Appraisal costs

D.

Internal failure costs

__________

Gwynnie Pie Company makes dessert pies for national fast food chains. Gwynnie Pie Company is considering using ABC costing and has the following activity cost pools and information available:

Activities	Estimated Overhead Costs	Estimated Activity
Material handling measured by batches	$257,000	2,000 batches
Mixing measured by batches	$114,000	2,400batches
Packaging measured by units	$86,000	2,150,000 units
Maintenance measured by # of setups	$15,000	260 setups

Gwynnie Pie Company currently uses a plantwide overhead rate based on total estimated machine hours of 100,000 hours. Based on their estimates for ABC costing, what would the allocated cost for all overhead costs for Job 607 be based on the following information about the job: Hint: Batches = units / # of units in each batch.

# of units in the job = 5,400

# of units in each batch =1,080

# of setups required to complete the job = 1

# of machine hours = 220

A. $1,153.69

B. $1,038.40

C. $1,096.00

D. $449.69