The company makes 430 units of product R32E a year, requiring a total of 1,120 machine-hours, 40
orders, and 30 inspection-hours per year. The product’s direct materials cost is $49.81 per unit and its
direct labor cost is $12.34 per unit. The product sells for $129.90 per unit. According to the
activity-based costing system, the total overhead cost allocated to product R32E is:
A) $5,161.30
B) $1,044.80
C) $2,064.00
D) $25,016.00
E) $21,907.20
34) Quantum Corporation has provided the following data from its activity-based costing system:
Activity Cost Pool
Overhead Cost
Total Activity
Assembly
$ 1,114,920
57,000 machine hours
Processing orders
$ 47,016
1,800 orders
Inspection
$ 107,328
1,560 inspection hours
The company makes 430 units of product R32E a year, requiring a total of 1,120 machine-hours, 40
orders, and 30 inspection-hours per year. The product’s direct materials cost is $49.81 per unit and its
direct labor cost is $12.34 per unit. The product sells for $129.90 per unit. According to the
activity-based costing system, the product margin for product R32E is:
A) $29,132.50
B) $4,116.50
C) $5,161.30
D) $6,180.50
E) $4,981.00
29
35) Quantum Corporation has provided the following data from its activity-based costing system:
Activity Cost Pool
Overhead Cost
Total Activity
Assembly
$ 1,114,920
57,000 machine hours
Processing orders
$ 47,016
1,800 orders
Inspection
$ 107,328
1,560 inspection hours
The company makes 340 units of product J71B a year, requiring a total of 980 machine-hours, 36
orders, and 22 inspection-hours per year. The product’s direct materials cost is $27.50 per unit and its
direct labor cost is $18.10 per unit. According to the activity-based costing system, the total overhead
cost for producing the 340 units of the J71B product is:
A) $17,957.92
B) $30,972.72
C) $15,504.00
D) $21,622.72
E) $37,126.72
36) Quantum Corporation has provided the following data from its activity-based costing system:
Activity Cost Pool
Overhead Cost
Total Activity
Assembly
$ 1,114,920
57,000 machine hours
Processing orders
$ 47,016
1,800 orders
Inspection
$ 107,328
1,560 inspection hours
The company makes 340 units of product J71B a year, requiring a total of 980 machine-hours, 36
orders, and 22 inspection-hours per year. The product’s direct materials cost is $27.50 per unit and its
direct labor cost is $18.10 per unit. According to the activity-based costing system, the total cost for
producing the 340 units of the J71B product is:
A) $37,126.72
B) $15,504.00
C) $30,972.72
D) $17,957.92
E) $21,622.72
35
37) Zephyr Corporation has provided the following data from its activity-based costing system:
Activity Cost Pool
Overhead Cost
Total Activity
Assembly
$ 383,180
23,000 machine hours
Processing orders
$ 50,798
1,100 orders
Inspection
$ 106,110
1,620 inspection hours
Data concerning one of the company’s products, Product LM41, appear below.
Selling price per unit
$ 124.60
Direct materials cost per unit
$ 22.08
Direct labor cost per unit
$ 45.77
Annual unit production and sales
210
Orders processed
80
Annual machine hours
320
Annual inspection hours
10
According to the activity-based costing system, the product margin for product LM41 is:
A) $3,178.20
B) $11,917.50
C) $5,931.30
D) $2,891.90
E) $2,236.90