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125) Platinum Company manufactures several different products and uses an

Question : 125) Platinum Company manufactures several different products and uses an : 1876953

125) Platinum Company manufactures several different products and uses an activity-based costing system. Information from its system for the year for all products follows:

The annual production and sales of one of its products, the Zinger, are 800 units. The following data relate to the production and sales of Widgets in the most recent year:

Annual machine hours720

Annual number of orders130

Annual number of inspections85

Direct materials cost per unit$119.40

Direct labor cost per unit$63.80

What is the average cost of one Zinger?

A) $25.01

B) $158.19

C) $236.70

D) $208.21

126) Benjamin Company manufactures a wide variety of products and uses an activity-based costing system. Data from its activity-based costing system for all products follows:

What is the engineering cost pool rate per engineering hour?

A) $12

B) $28

C) $47

D) $83

127) Salvatore LLC provides a wide variety of legal services and uses an activity-based costing system. Data from its activity-based costing system for all services follows:

The cost pool activity rate for client meetings is

A) $56 per meeting hour.

B) $8 per meeting hour.

C) $27 per meeting hour.

D) $87 per meeting hour.

128) Dursley & Marvolo, Attorneys at Law, provide a variety of legal services. The law firm uses an activity-based costing system and has developed the following activity pool cost rates:

Cost and activity data related to two clients is as follows:

Client 82     Client 122

Number of paralegal hours3276

Number of cases filed13

Number of documents1333

How much overhead cost would be allocated to Client 82 using the activity-based costing system?

A) $709

B) $9,626

C) $2,721

D) $32,614

129) Augustine Associates is a CPA firm that offers assurance and consulting services. The firm uses an activity-based costing system and has developed the following activity pool cost rates:

Cost and activity data related to two clients is as follows:

Client 867    Client 928

Number of staff hours2085

Number of partner hours1520

Number of reports1027

How much overhead cost would be allocated to Client 867 using the activity-based costing system?

A) $370

B) $18,290

C) $5,700

D) $16,650

130) Howard, Fine, & Howard is an advertising agency. The firm uses an activity-based costing system to allocate overhead costs to its services. Information about the firm's activity cost pool rates follows:

Stooge Company was a client of Howard, Fine, & Howard. Recently, 7 administrative assistant hours, 3 new ad campaigns, and 8 meeting hours were incurred for the Stooge Company account.

Using the activity-based costing system, how much overhead cost would be allocated to the Stooge Company account?

A) $917

B) $501

C) $195

D) $3,484

131) Carrol Company, which uses an activity-based costing system, produces travel trailers and boat trailers. The company allocates batch setup costs to the two products using the following basic data:

Travel trailersBoat trailers

Budgeted units to be produced2,2502,900

Budgeted number of setups340560

Budgeted number of direct labor hours per unit4060

Total budgeted setup costs for the year are $158,400.

If the setup costs are allocated using direct labor hours, how much of the total setup costs would be allocated to boat trailers?

A) $158,400

B) $104,400

C) $240,331

D) $306,240

132) Carrol Company, which uses an activity-based costing system, produces travel trailers and boat trailers. The company allocates batch setup costs to the two products using the following basic data:

Travel trailersBoat trailers

Budgeted units to be produced2,2502,900

Budgeted number of setups340560

Budgeted number of direct labor hours per unit4060

Total budgeted setup costs for the year are $158,400.

If the setup costs are allocated using number of setups, how much of the total setup costs would be allocated to boat trailers?

A) $98,560

B) $59,840

C) $158,400

D) $419,294

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