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98. Angara Corporation uses activity-based costing to determine product costs for external
financial reports. The company has provided the following data concerning its activity-based
costing system:
Activity Cost Pools Estimated
(and Activity Measures) Overhead Cost
Machine related (machine-hours) $137,600
Batch setup (setups) $532,800
General factory (direct labor-hours) $105,300
Expected Activity
Activity Cost Pools Product X Product Y Total
Machine related 1,000 7,000 8,000
Batch setup 3,000 5,000 8,000
General factory 7,000 2,000 9,000
The activity rate for the batch setup activity cost pool is closest to:
99. Angara Corporation uses activity-based costing to determine product costs for external
financial reports. The company has provided the following data concerning its activity-based
costing system:
Activity Cost Pools Estimated
(and Activity Measures) Overhead Cost
Machine related (machine-hours) $137,600
Batch setup (setups) $532,800
General factory (direct labor-hours) $105,300
Expected Activity
Activity Cost Pools Product X Product Y Total
Machine related 1,000 7,000 8,000
Batch setup 3,000 5,000 8,000
General factory 7,000 2,000 9,000
Assuming that actual activity turns out to be the same as expected activity, the total amount of
overhead cost allocated to Product X would be closest to:
100. Pachero, Inc., manufactures and sells two products: Product T1 and Product U6. Data
concerning the expected production of each product and the expected total direct labor-hours
(DLHs) required to produce that output appear below:
Expected
Production Direct Labor-Hours Per Unit Total Direct Labor-Hours
Product T1 400 6.0 2,400
Product U6 100 4.0 400
Total direct labor-hours 2,800
he direct labor rate is $15.90 per DLH. The direct materials cost per unit is $259.80 for Product
T1 and $188.80 for Product U6
.
The company is considering adopting an activity-based costing system with the following activity
cost pools, activity measures, and expected activity:
Estimated Expected Activity
Activity Cost Pools Activity Measures
Overhead Cost
Product T1
Product U6
Total
Labor-related DLHs $71,428 2,400 400 2,800
Production orders orders 108,136 600 800 1,400
General factory MHs 430,560 3,400 3,100 6,500
$610,124
The activity rate for the Labor-Related activity cost pool under activity-based costing is closest
to:
101. Pachero, Inc., manufactures and sells two products: Product T1 and Product U6. Data
concerning the expected production of each product and the expected total direct labor-hours
(DLHs) required to produce that output appear below:
Expected
Production Direct Labor-Hours Per Unit Total Direct Labor-Hours
Product T1 400 6.0 2,400
Product U6 100 4.0 400
Total direct labor-hours 2,800
The direct labor rate is $15.90 per DLH. The direct materials cost per unit is $259.80 for Product
T1 and $188.80 for Product U6
.
The company is considering adopting an activity-based costing system with the following activity
cost pools, activity measures, and expected activity:
Estimated Expected Activity
Activity Cost Pools Activity Measures
Overhead Cost
Product T1
Product U6
Total
Labor-related DLHs $71,428 2,400 400 2,800
Production orders orders 108,136 600 800 1,400
General factory MHs 430,560 3,400 3,100 6,500
$610,124
The activity rate for the Production Orders activity cost pool under activity–based costing is
closest to:
102. Pachero, Inc., manufactures and sells two products: Product T1 and Product U6. Data
concerning the expected production of each product and the expected total direct labor-hours
(DLHs) required to produce that output appear below:
Expected
Production Direct Labor-Hours Per Unit Total Direct Labor-Hours
103. Pachero, Inc., manufactures and sells two products: Product T1 and Product U6. Data
concerning the expected production of each product and the expected total direct labor-hours
(DLHs) required to produce that output appear below:
Expected
Production Direct Labor-Hours Per Unit Total Direct Labor-Hours
Product T1 400 6.0 2,400
Product U6 100 4.0 400
Total direct labor-hours 2,800
The direct labor rate is $15.90 per DLH. The direct materials cost per unit is $259.80 for Product
T1 and $188.80 for Product U6
.
The company is considering adopting an activity-based costing system with the following activity
cost pools, activity measures, and expected activity:
Estimated Expected Activity
Activity Cost Pools Activity Measures
Overhead Cost
Product T1
Product U6
Total
Labor-related DLHs $71,428 2,400 400 2,800
Production orders orders 108,136 600 800 1,400
General factory MHs 430,560 3,400 3,100 6,500
$610,124
The unit product cost of Product T1 under activity-based costing is closest to:
104. Pachero, Inc., manufactures and sells two products: Product T1 and Product U6. Data
concerning the expected production of each product and the expected total direct labor-hours
(DLHs) required to produce that output appear below:
Expected
Production Direct Labor-Hours Per Unit Total Direct Labor-Hours
Product T1 400 6.0 2,400
Product U6 100 4.0 400
Total direct labor-hours 2,800
The direct labor rate is $15.90 per DLH. The direct materials cost per unit is $259.80 for Product
T1 and $188.80 for Product U6
.
The company is considering adopting an activity-based costing system with the following activity
cost pools, activity measures, and expected activity:
Estimated Expected Activity
Activity Cost Pools Activity Measures
Overhead Cost
Product T1
Product U6
Total
Labor-related DLHs $71,428 2,400 400 2,800
Production orders orders 108,136 600 800 1,400
General factory MHs 430,560 3,400 3,100 6,500
$610,124
The unit product cost of Product U6 under activity-based costing is closest to:
105. Olide, Inc., manufactures and sells two products: Product B9 and Product C8. The annual
production and sales of Product of B9 is 300 units and of Product C8 is 100 units. The company
has an activity-based costing system with the following activity cost pools, activity measures, and
expected activity:
Estimated Expected Activity
Activity Cost Pools Activity Measures Overhead
Cost Product B9 Product C8 Total
Labor-related DLHs $67,966 2,400 1,000 3,400
Production orders orders 13,874 300 400 700
General factory MHs 283,911 5,000 5,100 10,100
$365,751
The overhead applied to each unit of Product B9 under activity-based costing is closest to:
