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Category > Accounting Posted 18 Aug 2017 My Price 12.00

Matt Company

1. Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 9,000 units and of Product B is 8,000 units. There are three activity cost pools, with total cost and total activity as follows:

   

Total Activity
  Activity Cost Pool Total Cost Product A Product B Total
  Activity 1 $31,000   100     520     620    
  Activity 2 $46,287   860     250     1,110    
  Activity 3 $156,750   840     3,910     4,750    

The activity-based costing cost per unit of Product A is closest to: (Round your intermediate calculations to 2 decimal places.)

2. Spendlove Corporation has provided the following data from its activity-based costing system:
  Activity Cost Pool Total Cost Total Activity
  Assembly $1,398,250 65,800 machine-hours
  Processing orders $69,451.20   2,520 orders
  Inspection $184,800   2,400 inspection-hours

The company makes 920 units of product S78N a year, requiring a total of 1,290 machine-hours, 61 orders, and 40 inspection-hours per year. The product's direct materials cost is $57.55 per unit and its direct labor cost is $13.56 per unit. The product sells for $123.50 per unit.

According to the activity-based costing system, the product margin for product S78N is: (Round your intermediate calculations to 2 decimal places.)

3. Activity rates from Quattrone Corporation's activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products:
  Activity Cost Pools Activity Rate
  Processing customer orders $89.95 per customer order
  Assembling products $2.31 per assembly hour
  Setting up batches $51.23 per batch

Last year, Product F76D involved 2 customer orders, 436 assembly hours, and 22 batches. How much overhead cost would be assigned to Product F76D using the activity-based costing system?

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Maurice Tutor
(5)
Status NEW Posted 18 Aug 2017 03:08 PM My Price 12.00

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