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$(56,000) 120,000 units $3,300 $351,000 $338,000 $364,000 $353,000 Dillner Compa

ID: 2379111 • Letter: #

Question

$(56,000)

120,000 units

$3,300

$351,000 $338,000 $364,000 $353,000 Dillner Company uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system: The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. You have been asked to complete the first-stage allocation of costs to the activity cost pools. How much cost, in total, would be allocated in the first-stage allocation to the Customer Support activity cost pool? Data for June for Ozaki Corporation and its two major business segments, North and South, appear below: In addition, common fixed expenses totaled $145,000 and were allocated as follows: $73,000 to the North business segment and $72,000 to the South business segment. A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is: Hirt Corporation sells its product for $12 per unit. Next year, fixed expenses are expected to be $400,000 and variable expenses are expected to be $8 per unit. How many units must the company sell to generate net operating income of $80,000? Sibble Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $12,400; Supervising, $4,400; and Other, $5,200. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below:

Explanation / Answer

activity-based costing = 12400*17700/20000 + 4400*1500/2000 =14274


Option D (14274) is the correct answer.