1) A company produces a single product. Variable production costs are $13.7 per
ID: 2424791 • Letter: 1
Question
1) A company produces a single product. Variable production costs are $13.7 per unit and variable selling and administrative expenses are $4.7 per unit. Fixed manufacturing overhead totals $53,000 and fixed selling and administration expenses total $57,000. Assuming a beginning inventory of zero, production of 5,700 units and sales of 4,450 units, the dollar value of the ending inventory under variable costing would be:
$17,125
$28,375
$23,000
$11,250
2)
Umanzor 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, $48,800; Supervising, $36,700; and Other, $26,600. 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:
18,340
2,300
What is the overhead cost assigned to Product S5 under activity-based costing? (Round your intermediate calculations to 2 decimal places.)
$47,082.00
$26,972.40
$58,586.40
$74,054.40
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1) A company produces a single product. Variable production costs are $13.7 per unit and variable selling and administrative expenses are $4.7 per unit. Fixed manufacturing overhead totals $53,000 and fixed selling and administration expenses total $57,000. Assuming a beginning inventory of zero, production of 5,700 units and sales of 4,450 units, the dollar value of the ending inventory under variable costing would be:
Explanation / Answer
Products
MH ( Processing)
Batch( Supervising)
Product S5
17,700
1,690
Product F5
640
610
Total
18,340
2,300
Cost allocation under ABC Costing
Costs
Product S5
Product F5
Total
Processing
47,097.06
1,702.94
48,800
Supervising
26,966.52
9,733.48
36,700
Total
74,064
11,436
85,500
Answer is 74,064, as per options nearest value is $74,054.40
Products
MH ( Processing)
Batch( Supervising)
Product S5
17,700
1,690
Product F5
640
610
Total
18,340
2,300
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