ABC hs MULTIPLE CHO sle ICE. Choose the one alternative that best completes the
ID: 341813 • Letter: A
Question
ABC hs MULTIPLE CHO sle ICE. Choose the one alternative that best completes the statement or answers the question. 1) Senf Corporation uses the following acivity rates from its activity-based costing to 1) assign overhead costs to products: Activity Cost Pools Activity Rate Setting up batches...$38.50 per batch Processing customer orders. $86.62 per customer order mbling products$7.33 per assembly hour Data concerning two products appear below: Number of batches... Number of customer orders Number of assembly hours... Product V9 83 74 702 Product V211 27 7 321 How much overhead cost would be assigned to Product V91Z using the activity-based costing system? A) $14,751.04 B) S3,195.50 C) $132.45 D) $113,774.55 Abbe Corporation uses activity-based costing. The company makes two products: Product A and Product B. The annual production and sales of Product A is 800 units and of Product B is 600 units. There are three activity cost pools, with total cost and activity as follows: Total Activity Product BTotal 1,200 2,300 520 Activity Cost Pool Total Cost Product A 600 400 C) $33.31 600 600 120 $19,987 1,700 Activity 2.. Activity 3...$29,884 2) The activity rate for Activity 2 is closest to: 2) A) $8.69 B) $29.27 D) $11.76 3) The cost per unit of Product B is closest to: 3) A) $48.09 B) $25.90 C) $34.73 D) $11.49Explanation / Answer
1 Product V91Z Setting up batches 3195.5 =83*38.5 Processing customer orders 6409.88 =86.62*74 Assembling products 5145.66 =7.33*702 Overhead assigned 14751.04 Option A is correct 2 Activity rate for Activity 2=19987/2300= $8.69 Option A is correct 3 Product B Activity 1 8730 =17460/1200*600 Activity 2 5214 =19987/2300*600 Activity 3 6896 =29884/520*120 Total cost 20840 Units 600 Cost per unit 34.73 Option C is correct