XAD company is reviewing the behavior of its various activities. XAD is considering various costs and has identified two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows:

Maintenance

$120,000

Inspection

200,000

The plant currently applies overhead using direct labor hours and expected capacity of 80,000 direct labor hours. The following data has been assembled for use in developing a bid for a proposed job:

Direct materials

$1,500

Direct labor

$5,000

Machine hours

400

Number of inspections

6

Direct labor hours

750

Total expected machine hours for all jobs during the year are 40,000, and the total expected number of inspections is 2,500.

Using activity-based costing and the appropriate cost drivers, the total cost of the potential job would be

Select one:

a.Generally speaking, the activity-based cost figure is "less accurate" than the traditionally-derived cost figure.

b.$9,230

c.$8,180

d.$2,250

e.$1,680

Joxy company is considering its forthcoming projections for budget purposes. Roxy'sprojected sales for the first quarter of the coming year and beginning and ending inventory data are as follows:

Sales

50,000 units

Sales price

$15 per unit

Beginning inventory

15,000 units

Desired ending inventory

12,000 units

Each unit is assembled and then painted. Each unit requires 1/2 pound of metal which costs $2.50 per pound. The beginning inventory of metal is 2,000 pounds. Joxy wants to have 3,000 pounds in inventory at the end of the quarter.

Each unit requires 2 feet of lumber as well. Lumber is purchased for $2.00 per foot. The beginning inventory of lumber is 4,000 feet of lumber. Joxy want to have 3,000 feet of lumber on hand at the end of the quarter.

Each unit requires 45 minutes to assemble and paint. Direct labor is billed at a rate of $10.50 per hour.

How many units need to produce during the first quarter of the year?

Select one:

a.47,000 units

b.50,000 units

c.53,000 units

d.62,000 units