9) Fidelity Stereo Company has provided the following information regarding its

Question

9) Fidelity Stereo Company has provided the following information regarding its activity- based costing system 9) . Purchasing departiment costs are allocated based on purchase orders, and the prèdetermined ov allocation rate is $77 per purchaseorder Assembly department costs are allocated based on the number of parts used, andi the predeterm overhead allocation rate is $2 per part. artment costs are allocated based on the number of units produced, and the predetermined overhead allocation rate is $4 per unit produced. Each stereo produced has 50 parts, and the direct materials cost per unit is S60. There are no direct costs. Fidelity Stereo has an order for 1400 stereos, which will require 40 purchase orders in all What is the total cost for the 1400 stereos? A) $143,080 B) $229,600 C) $232,680 D) $148,000 10) Skipper Company manufactures toy boats and uses an activity-based costing system. The 10) following information is provided for the month of May: Estimated Quantity of Allocation Base 3000 parts 3000 parts 1200 boats Activity Materials handlin Estimated Indiredt Activity Costs Allocation Base Number of parts Number of parts Number of boats $5650 Each boat consists of four parts, and the direct materials cost per boat is $7.21. There is no direct labo What is the total manufacturing cost per boat? (Round any intermediate calculations and your final answer to the nearest cent.) A) S22.84 B) $18.13 C) $4.43 D) $15.63 11) Bernard Company shows the following manufacturing costs for the first six months of the year: Production in Unit 1600 1450 1770 2400 2840 2850 Total Costs Februar March $31,000 $35,436 $43,636 545,780 $45,900 Using the high- low method, the total fixed costs are(Round intermediate calculations to two decimal places, and the final calculation to the nearest dollar.) A) $15,576 B) $45,900 C) $14,900 D) $30,324 12) Which of the following appears as a line item in a contribution margin income statement? A) Operating income C) Total selling and administrative expenses B) Total cost of goods sold D) Gross profit

Explanation / Answer

9) total cost direct materials (60*1400)= 84000 purchase order (77*40)= 3080 Assembling (2*50*1400)= 140000 packaging (4*1400)= 5600 total cost 232680 option c is the answer 10) Each boat requires 4 parts total parts required = 1200*4 = 4800 parts total overhead cost Materials handling (3000/3000)*4800= 4800 Assembling (5200/3000)*4800= 8320 packaging (5650/1200)*1200 5650 total overhead cost 18770 overhead cost per unit (18770/1200)= 15.63 direct materials cost per unit = 7.21 cost per unit 22.84 option A) $22.84 is the answer 11) units cost high 2850 45900 low -1450 -31000 difference 1400 14900 varable cost per unit 14900/1400 10.64 fixed cost = (45900 - 2850*10.64) 15576 option A is the correct answer 12) option A operating incom

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