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4 IS $ 126.75 AND FOR QUESTION # 6 IS  A. $127500  IF YOU COME UP WITH A DIFFERENT ANSWER PLEASE DO NOT SUBMIT IT BECAUSE I HAVE TO ASK AGAIN AS ALWAYS DO THEN I CAN LOSE ONE QUESTION.

4 IS $ 126.75 AND FOR QUESTION # 6 IS  A. $127500  IF YOU COME UP WITH A DIFFERENT ANSWER PLEASE DO NOT SUBMIT IT BECAUSE I HAVE TO ASK AGAIN AS ALWAYS DO THEN I CAN LOSE ONE QUESTION.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter12: Activity-based Management
Section: Chapter Questions
Problem 14E: Sanford, Inc., has developed value-added standards for four activities: purchasing parts, receiving...
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ANSWER FOR QUESTION # 4 IS $ 126.75 AND FOR QUESTION # 6 IS  A. $127500 

IF YOU COME UP WITH A DIFFERENT ANSWER PLEASE DO NOT SUBMIT IT BECAUSE I HAVE TO ASK AGAIN AS ALWAYS DO THEN I CAN LOSE ONE QUESTION.

The next three questions are based on the following information: Alrex company is using an activity-based costing (ABC) system. The company produces and sells two products: Basic and Pro. The company consists of two departments: Production (where all manufacturing activities are taken) and Marketing (which engages in sclling and admin activity only). The ABC'system includes in unit product costs all costs casily associated with units. In addition, in the ABC system, there are four major indirecet activities: Machine Setaps, Special Processing. Factory Supervision, and Customer Relation. The prices, direct material cost (DM), shipping cost and direct labor-hours (DLHS) are given below for one unit of the product, as well as the total units produced and sold. Hourly Wage-DL $10 Product Price DM DLHS Shipping Cost Units Basic S180 $50 1 $2 6,000 Pro $320 $80 2 $12 $4 4,000 The company collected the data for ABC as follows: Activity measures used Estimated OH. Activity Cost Pool Activity Measure # of setups Basic cost $ 472,500 $ 360,000 $ 224,000 $ 240,000 Pro Machine Setup Special Processing Factory Supervision Customer Relation (10 customers) 60 120 Machine hours 6,000 10,000 DLH # of customers 4 Under the ABC system, what is the unit product cost for Basic? (Choose the closest amount,) A. $275.00 В. $126.75 C. $124.75 D. $130.75 E. None of the above 5 Batch-level activities include (choose the most complete answer): A. Machine Setup B. Special Processing C. Factory Supervision D. Machine Setup, Special Processing, and Factory Supervision E. Special Processing and Factory Supervision
Transcribed Image Text:The next three questions are based on the following information: Alrex company is using an activity-based costing (ABC) system. The company produces and sells two products: Basic and Pro. The company consists of two departments: Production (where all manufacturing activities are taken) and Marketing (which engages in sclling and admin activity only). The ABC'system includes in unit product costs all costs casily associated with units. In addition, in the ABC system, there are four major indirecet activities: Machine Setaps, Special Processing. Factory Supervision, and Customer Relation. The prices, direct material cost (DM), shipping cost and direct labor-hours (DLHS) are given below for one unit of the product, as well as the total units produced and sold. Hourly Wage-DL $10 Product Price DM DLHS Shipping Cost Units Basic S180 $50 1 $2 6,000 Pro $320 $80 2 $12 $4 4,000 The company collected the data for ABC as follows: Activity measures used Estimated OH. Activity Cost Pool Activity Measure # of setups Basic cost $ 472,500 $ 360,000 $ 224,000 $ 240,000 Pro Machine Setup Special Processing Factory Supervision Customer Relation (10 customers) 60 120 Machine hours 6,000 10,000 DLH # of customers 4 Under the ABC system, what is the unit product cost for Basic? (Choose the closest amount,) A. $275.00 В. $126.75 C. $124.75 D. $130.75 E. None of the above 5 Batch-level activities include (choose the most complete answer): A. Machine Setup B. Special Processing C. Factory Supervision D. Machine Setup, Special Processing, and Factory Supervision E. Special Processing and Factory Supervision
6 The company has two major customers (A and B), who buy their products in the amounts in the table below. Customer Basic A 2,000 units 1,000 units B 800 Pro 1,200 How much is the ABC customer margin of customer B? (Choose the closest amount.) A. $ 127,500 B. $ 135,500 C. $ 151,500 D. $ 159,500 E. None of the above.
Transcribed Image Text:6 The company has two major customers (A and B), who buy their products in the amounts in the table below. Customer Basic A 2,000 units 1,000 units B 800 Pro 1,200 How much is the ABC customer margin of customer B? (Choose the closest amount.) A. $ 127,500 B. $ 135,500 C. $ 151,500 D. $ 159,500 E. None of the above.
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