111. A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: ...

111. A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:

Annual production and sales level of Product A is 34,300 units, and the annual production and sales level of Product B is 69,550 units. What is the approximate overhead cost per unit of Product B under activity-based costing?
A. $3.00
B. $2.00
C. $10.28
D. $15.00
E. $2.33

112. A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:

Annual production and sales level of Product A is 34,300 units, and the annual production and sales level of Product B is 69,550 units. What is the approximate overhead cost per unit of Product A under activity-based costing?
A. $3.00
B. $2.00
C. $10.28
D. $15.00
E. $2.33

113. A company has two products: A1 and B2. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:

Annual production and sales level of Product A1 is 8,480 units, and the annual production and sales level of Product B2 is 22,310 units. What is the approximate overhead cost per unit of Product A1 under activity-based costing?

A. $8.00
B. $9.00
C. $10.00
D. $12.00
E. $4.00

114. A company has two products: A1 and B2. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:

Annual production and sales level of Product A1 is 8,480 units, and the annual production and sales level of Product B2 is 22,310 units. What is the approximate overhead cost per unit of Product B2 under activity-based costing?

A. $8.00
B. $9.00
C. $10.00
D. $12.00
E. $4.00

Reference: 17_05

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 1/2pound cans.
The company identified the following partial list of activities, costs, and activity drivers expected for the next year:

115. Refer to the data above. What are the overhead rates used to apply material handling (MH) and storage costs (SC) using activity-based costing?

A. MH $300/batch; SC $2.73/unit.

B. MH $300/batch; SC $.20/lb.

C. MH $525/batch; SC $.205/unit.

D. MH $700/batch; SC $.205/lb.

E. MH $700/batch; SC $8.20/lb.

116. 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.

117. 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.

Reference: 17_06

Assume that the Oregon Ice Cream Company is considering the costs of two of their product lines—ice cream sandwiches and dessert bars. The company identified the following partial list of activities, costs, and activity drivers expected for the next year.

118. Refer to the data in the preceding tables. How much overhead cost will be assigned to the ice cream sandwich product line using activity-based costing (ABC)?
A. $340,000
B. $368,000
C. $28,000
D. $850.08
E. $433,682

119. Refer to the data above. How much overhead cost will be assigned to the dessert bar product line using activity-based costing (ABC)?
A. 340,750
B. $247,818
C. $16,000
D. $297,500
E. $313,500

120. A company identified the following partial list of activities, costs, and activity drivers expected for the next year:

Calculate activity rates for each of the three activities using activity-based costing (ABC).
A. Extrusion: $304 per batch; handling: $32 per unit; packaging: $.03 per unit.
B. Extrusion: $88 per batch; handling: $32 per order; packaging: $.03 per unit.

C. Extrusion: $88 per order; handling: $32 per unit; packaging: $.03 per batch.
D. Extrusion: $418 per batch; handling: $117.33 per order; packaging: $.054 per unit.
E. Extrusion: $118.13 per batch; handling: $44 per order; packaging: $.0675 per unit.

121. A company identified the following partial list of activities, costs, and activity drivers expected for the next year:

How much overhead in total will be assigned to the Product A line using activity based costing?
A. $42,500.

B. $132,900.

C. $90,400.
D. $66,000.
E. $66,450.