Maurice Tutor

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    Oct-2001 - Nov-2016

Category > Accounting Posted 17 Aug 2017 My Price 12.00

pet fod manufacturer

Assume that a pet food manufacturer is considering adding two types of pet food to its existing product line. Research had determined that good demand exists for dog food in 40-pound bags and cat food in A??1 pound cans.
The company identified the following partial list of activities, costs, and activity drivers expected for the next year:

Refer to the data above. How much overhead cost will be assigned to each unit of product using activity-based costing (ABC)?

   

A.) Dog food: $4.62; cat food: $4.62.
   

B.) Dog food: $2.64; cat food: $2.64.
   

C.) Dog food: $8.60; cat food: $0.33.
   

D.) Dog food: $0.26; cat food: $8.60.
   

E.) Dog food: $0.12; cat food: $3.85.

Refering to table above:

Refer to the data in the preceding tables. How much overhead cost will be assigned to each product line using activity-based costing (ABC)?

   

A.) Dog food: $462,500; cat food: $462,500.
   

B.) Dog food: $860,000; cat food: $65,000.
   

C.) Dog food: $60,000; cat food: $45,000.
   

D.) Dog food: $800,000; cat food: $20,000.
   

E.) Dog food: $320; cat food: $320.

Branwin Corporation sold 7,200 units of its product at a price of $35.60 per unit. Total variable cost per unit is $17.55, consisting of $10.50 in variable production cost and $7.05 in variable selling and administrative cost. Compute contribution margin for the company.

A.)  

$256,320
B.)  

$126,360
C.)  

$50,760
D.)  

$129,960
E.)  

$180,720

 

Answers

Maurice Tutor
(5)
Status NEW Posted 17 Aug 2017 06:08 PM My Price 12.00

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