Question :
121. If the company meets the new target cost number, how : 1239625
121. If the company meets the new target cost number, how much will they have to cut costs per unit, if any? A. $1B. $3C. $2D. $0
122. If the company can not cut costs any lower than they already are what would the profit margin on sales be if they meet the market selling price? A. 9.3%B. 7.3%C. 10.3%D. 8.3%
123. Miramar Industries manufactures two products, A and B. The manufacturing operation involves three overhead activities – production setup, material handling, and general factory activities. Miramar uses activity-based costing to allocate overhead to products. An activity analysis of the overhead revealed the following estimated costs and activity bases for these activities:
Activity
Cost
Activity Base
Production Setup
$250,000
Number of setups
Material Handling
$150,000
Number of parts
General Overhead
$80,000
Number of direct labor hours
Each product’s total activity in each of the three areas are as follows:
Product A
Product B
Number of setups
100
300
Number of parts
40,000
20,000
Number of direct labor hours
8,000
12,000
What is the activity rate for Production Setup? A. $2,500 per setupB. $833 per setupC. $625 per setupD. $400 per setup
124. Miramar Industries manufactures two products, A and B. The manufacturing operation involves three overhead activities – production setup, material handling, and general factory activities. Miramar uses activity-based costing to allocate overhead to products. An activity analysis of the overhead revealed the following estimated costs and activity bases for these activities:
Activity
Cost
Activity Base
Production Setup
$250,000
Number of setups
Material Handling
$150,000
Number of parts
General Overhead
$80,000
Number of direct labor hours
Each product’s total activity in each of the three areas are as follows:
Product A
Product B
Number of setups
100
300
Number of parts
40,000
20,000
Number of direct labor hours
8,000
12,000
What is the activity rate for Material Handling? A. $1.50 per partB. $3.75 per partC. $7.50 per partD. $2.50 per part
125. Miramar Industries manufactures two products, A and B. The manufacturing operation involves three overhead activities – production setup, material handling, and general factory activities. Miramar uses activity-based costing to allocate overhead to products. An activity analysis of the overhead revealed the following estimated costs and activity bases for these activities:
Activity
Cost
Activity Base
Production Setup
$250,000
Number of setups
Material Handling
$150,000
Number of parts
General Overhead
$80,000
Number of direct labor hours
Each product’s total activity in each of the three areas are as follows:
Product A
Product B
Number of setups
100
300
Number of parts
40,000
20,000
Number of direct labor hours
8,000
12,000
What is the activity rate for General Overhead? A. $4.00 per direct labor hourB. $60.00 per direct labor hourC. $6.67 per direct labor hourD. $10.00 per direct labor hour
126. Miramar Industries manufactures two products, A and B. The manufacturing operation involves three overhead activities – production setup, material handling, and general factory activities. Miramar uses activity-based costing to allocate overhead to products. An activity analysis of the overhead revealed the following estimated costs and activity bases for these activities:
Activity
Cost
Activity Base
Production Setup
$250,000
Number of setups
Material Handling
$150,000
Number of parts
General Overhead
$80,000
Number of direct labor hours
Each product’s total activity in each of the three areas are as follows:
Product A
Product B
Number of setups
100
300
Number of parts
40,000
20,000
Number of direct labor hours
8,000
12,000
What is the total overhead allocated to Product A using activity-based costing? A. $194,500B. $162,500C. $32,000D. $224,000
127. Miramar Industries manufactures two products, A and B. The manufacturing operation involves three overhead activities – production setup, material handling, and general factory activities. Miramar uses activity-based costing to allocate overhead to products. An activity analysis of the overhead revealed the following estimated costs and activity bases for these activities:
Activity
Cost
Activity Base
Production Setup
$250,000
Number of setups
Material Handling
$150,000
Number of parts
General Overhead
$80,000
Number of direct labor hours
Each product’s total activity in each of the three areas are as follows:
Product A
Product B
Number of setups
100
300
Number of parts
40,000
20,000
Number of direct labor hours
8,000
12,000
What is the overhead allocated to Product B using activity-based costing? A. $135,000B. $175,000C. $292,500D. $285,500
128. Using the variable cost concept determine the mark-up per unit for 30,000 units using the following data: Variable cost per unit $15.00, total fixed costs $90,000 and desired profit $150,000. A. $10B. $15C. $8D. $23
129. Using the variable cost concept determine the selling price for 30,000 units using the following data: Variable cost per unit $15.00, total fixed costs $90,000 and desired profit $150,000. A. $10B. $15C. $8D. $23
