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121) Beartowne Enterprises uses an activity-based costing system to assign

Question : 121) Beartowne Enterprises uses an activity-based costing system to assign : 1876952

121) Beartowne Enterprises uses an activity-based costing system to assign costs in its auto-parts division.

ActivityEst. Indirect Activity

CostsAllocation baseCost allocation rate

Materials$60,000Material moves$5.00/move

Assembling$175,000Direct labor hours$5.00/dir. labor hour

Packaging$70,000# of finished units$2.50/finished unit

The following units were produced in December with the following information:

Part ## ProducedMaterials Costs# MovesDir. Labor Hours.

Part 0011,250 $2,500100200

Part 0023,500 $6,000500300

Part 0033,750 $7,0002,5001,250

Total assembly fees for Part 002 is

A) $1,000.

B) $1,250.

C) $1,500.

D) $2,500.

122) Beartowne Enterprises uses an activity-based costing system to assign costs in its auto-parts division.

ActivityEst. Indirect Activity

CostsAllocation baseCost allocation rate

Materials$60,000Material moves$5.00/move

Assembling$175,000Direct labor hours$5.00/dir. labor hour

Packaging$70,000# of finished units$2.50/finished unit

The following units were produced in December with the following information:

Part ## ProducedMaterials Costs# MovesDir. Labor Hours.

Part 0011,250 $2,500100200

Part 0023,500 $6,000500300

Part 0033,750 $7,0002,5001,250

Total packaging fees for all three parts is:

A) $21,250.

B) $42,500.

C) $11,875.

D) $7,750.

123) Bilingsly Limited, a manufacturer of a variety of products, uses an activity-based costing system.Information from its system for the year for all products follows:

Bilingsly Limited makes 450 of its product B63 a year, which requires a total of 53 machine hours, 13 inspection hours, and 19 orders. Product B63 requires $45.70 in direct materials per unit and $58.20 in direct labor per unit. Product B63 sells for $265 per unit. What is the profit margin in total for Product B63?

A) $80.20

B) $36,090.00

C) $116,986.60

D) $70,335.50

124) Wadsworth Industries manufactures small appliances and uses an activity-based costing system. Information from its system for the year for all products follows:

Wadsworth makes 775 of its stand mixers a year, which requires a total of 25 machine hours, 10 inspection hours, and 12 orders. The stand mixer requires $15.00 in direct materials per unit and $11.50 in direct labor per unit. The stand mixer sells for $120 per unit. What is the profit margin in total for the stand mixer?

A) $91,979.50

B) $26.50

C) $20,537.50

D) $71,468.50

Solution
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Accounting 11 Months Ago 13 Views
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