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149) The cost per unit of Product B is closest to:
A) $41.58
B) $81.53
C) $74.73
D) $17.69
Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs
have already been allocated to the company's three activity cost pools--Processing, Supervising,
and Other. The costs in those activity cost pools appear below:
Processing
$
3,800
Supervising
$
23,800
Other
$
10,400
Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are
assigned to products using the number of batches. The costs in the Other activity cost pool are
not assigned to products. Activity data appear below:
MHs (Processing)
Batches (Supervising)
Product M0
9,700
500
Product M5
300
500
Total
10,000
1,000
Finally, sales and direct cost data are combined with Processing and Supervising costs to
determine product margins.
Product M0
Product M5
Sales (total)
$74,100
$89,900
Direct materials (total)
$28,500
$31,400
Direct labor (total)
$27,800
$41,700
150) The activity rate for the Supervising activity cost pool under activity-based costing is
closest to:
A) $38.00 per batch
B) $7.00 per batch
C) $23.80 per batch
D) $14.00 per batch
151) What is the overhead cost assigned to Product M5 under activity-based costing?
A) $11,900
B) $19,000
C) $114
D) $12,014
152) What is the product margin for Product M5 under activity-based costing?
A) $18,000
B) $16,800
C) $4,786
D) $2,686
Bachrodt Corporation uses activity-based costing to compute product margins. Overhead costs
have already been allocated to the company's three activity cost pools--Processing, Supervising,
and Other. The costs in those activity cost pools appear below:
Processing
$
21,600
Supervising
$
3,700
Other
$
10,700
Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are
assigned to products using the number of batches. The costs in the Other activity cost pool are
not assigned to products. Activity data appear below
MHs (Processing)
Batches (Supervising)
Product Y7
3,700
400
Product V0
6,300
600
Total
10,000
1,000
Finally, sales and direct cost data are combined with Processing and Supervising costs to
determine product margins.
Product Y7
Product V0
Sales (total)
$
102,200
$
78,900
Direct materials (total)
$
40,800
$
39,100
Direct labor (total)
$
47,200
$
22,300
153) The activity rate for the Processing activity cost pool under activity-based costing is closest
to:
A) $2.10 per MH
B) $2.16 per MH
C) $3.60 per MH
D) $1.50 per MH
154) What is the overhead cost assigned to Product Y7 under activity-based costing?
A) $7,992
B) $1,480
C) $18,000
D) $9,472
155) What is the product margin for Product Y7 under activity-based costing?
A) -$3,800
B) $4,728
C) $14,200
D) $6,208
Flemming Corporation uses activity-based costing to compute product margins. Overhead costs
have already been allocated to the company's three activity cost pools--Machining, Order Filling,
and Other. The costs in those activity cost pools appear below:
Machining
$
20,900
Order Filling
$
22,900
Other
$
29,200
Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are
assigned to products using the number of orders. The costs in the Other activity cost pool are not
assigned to products. Activity data appear below:
MHs (Machining)
Orders (Order Filling)
Product U6
9,600
600
Product Z8
400
400
Finally, sales and direct cost data are combined with Machining and Order Filling costs to
determine product margins.
Product U6
Product Z8
Sales (total)
$
185,100
$
178,100
Direct materials (total)
$
56,600
$
98,600
Direct labor (total)
$
83,400
$
63,700
156) The activity rate for Machining under activity-based costing is closest to:
A) $7.30 per MH
B) $2.04 per MH
C) $2.09 per MH
D) $0.83 per MH
157) What is the overhead cost assigned to Product U6 under activity-based costing?
A) $36,500
B) $20,064
C) $33,804
D) $13,740
158) What is the product margin for Product U6 under activity-based costing?
A) $45,100
B) $11,296
C) $25,036
D) $8,600
Handal Corporation uses activity-based costing to compute product margins. Overhead costs
have already been allocated to the company's three activity cost pools--Machining, Order Filling,
and Other. The costs in those activity cost pools appear below:
Machining
$
15,800
Order Filling
$
6,400
Other
$
9,800
Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are
assigned to products using the number of orders. The costs in the Other activity cost pool are not
assigned to products. Activity data appear below:
MHs (Machining)
Orders (Order Filling)
Product O4
4,800
300
Product S1
15,200
1,700
Finally, sales and direct cost data are combined with Machining and Order Filling costs to
determine product margins.
Product O4
Product S1
Sales (total)
$
70,200
$
112,200
Direct materials (total)
$
23,900
$
44,300
Direct labor (total)
$
38,900
$
46,700
159) The activity rate for the Order Filling activity cost pool under activity-based costing is
closest to:
A) $16.00 per order
B) $1.00 per order
C) $3.20 per order
D) $1.18 per order
160) What is the overhead cost assigned to Product S1 under activity-based costing?
A) $12,008
B) $16,000
C) $5,440
D) $17,448
161) What is the product margin for Product S1 under activity-based costing?
A) $17,592
B) $29,800
C) $3,752
D) $21,200
162) Younan Corporation manufactures two products: Product E47F and Product D02M. The
company is considering implementing an activity-based costing (ABC) system that allocates its
manufacturing overhead to four cost pools. The following additional information is available for
the company as a whole and for Products E47F and D02M.
Activity Cost Pool
Activity Measure
Total Cost
Total Activity
Machining
Machine-hours
$
165,000
11,000
MHs
Machine setups
Number of setups
$
150,000
250
setups
Product design
Number of products
$
70,000
2
products
Order size
Direct labor-hours
310,000
10,000
DLHs
Activity Measure
Product E47F
Product D02M
Machine-hours
5,000
6,000
Number of setups
200
50
Number of products
1
1
Direct labor-hours
4,000
6,000
Using the ABC system, the percentage of the total overhead cost that is assigned to Product
E47F is closest to:
A) 17.84%
B) 33.09%
C) 50.00%
D) 50.94%
163) Younan Corporation manufactures two products: Product E47F and Product D02M. The
company is considering implementing an activity-based costing (ABC) system that allocates its
manufacturing overhead to four cost pools. The following additional information is available for
the company as a whole and for Products E47F and D02M.
Activity Cost Pool
Activity Measure
Total Cost
Total Activity
Machining
Machine-hours
$
165,000
11,000
MHs
Machine setups
Number of setups
$
150,000
250
setups
Product design
Number of products
$
70,000
2
products
Order size
Direct labor-hours
310,000
10,000
DLHs
Activity Measure
Product E47F
Product D02M
Machine-hours
5,000
6,000
Number of setups
200
50
Number of products
1
1
Direct labor-hours
4,000
6,000
Using the ABC system, the percentage of the total overhead cost that is assigned to Product
D02M is closest to:
A) 49.06%
B) 22.30%
C) 26.76%
D) 50.00%
164) Horgen Corporation manufactures two products: Product M68B and Product H27T. The
company is considering implementing an activity-based costing (ABC) system that allocates its
manufacturing overhead to four cost pools. The following additional information is available for
the company as a whole and for Products M68B and H27T.
Activity Cost Pool
Activity Measure
Total Cost
Total Activity
Machining
Machine-hours
$
299,000
13,000
MHs
Machine setups
Number of setups
$
240,000
400
setups
Product design
Number of products
$
80,000
2
products
Order size
Direct labor-hours
290,000
10,000
DLHs
Activity Measure
Product
M68B
Product
H27T
Machine-hours
6,000
7,000
Number of setups
250
150
Number of products
1
1
Direct labor-hours
4,000
6,000
Using the ABC system, how much total manufacturing overhead cost would be assigned to
Product M68B?
A) $454,500
B) $116,000
C) $444,000
D) $328,000
165) Horgen Corporation manufactures two products: Product M68B and Product H27T. The
company is considering implementing an activity-based costing (ABC) system that allocates its
manufacturing overhead to four cost pools. The following additional information is available for
the company as a whole and for Products M68B and H27T.
Activity Cost Pool
Activity Measure
Total Cost
Total Activity
Machining
Machine-hours
$
299,000
13,000
MHs
Machine setups
Number of setups
$
240,000
400
setups
Product design
Number of products
$
80,000
2
products
Order size
Direct labor-hours
290,000
10,000
DLHs
Activity Measure
Product
M68B
Product
H27T
Machine-hours
6,000
7,000
Number of setups
250
150
Number of products
1
1
Direct labor-hours
4,000
6,000
Using the ABC system, how much total manufacturing overhead cost would be assigned to
Product H27T?
A) $291,000
B) $174,000
C) $465,000
D) $454,500
