Problem 3. Abraham Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 200 units and of Product B is 1,000 units. There are three activity cost pools, with total costs and activity as follows: 000 à 000 Activity Cost Pool Activity 1 Activity 2 Activity 3 Total Cost $10,485 $35,264 $26,395 Product A 300 1,600 60 Total Activity Product B 200 300 400 Total 500 1,900 460 a) What is the total overhead cost allocated to Product B under activity-based costing? b) What is the overhead cost per unit of Product B under activity-based costing?

Book Hint Ask Print erences IC raw ill L lon Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material. Kin uses 3.2 pounds of the material, Ike uses 3.2 pounds of the material, and Bix uses 5.5 pounds of the material. Selling price per unit and variable costs per unit of each product follow. ! A Selling price per unit Variable costs per unit (a) Compute contribution margin per pound of material for each product. (b) If demand is limited, list the three products in the order in which management should produce and meet demand. Contribution margin per pound Z dª ² Order in which management should produce and meet demand: F1 @@ 2 W S X command * F2 # 3 Kin $143.96 95.00 E D 8.0 F3 C MAR 29 $ Ike $ 120.24 94.00 4 Product Contribution Margin R a F4 F % Bix $ 204.50 144.00 5 V 9 S * 8 J DII F8 Bix ill M ( 9 K F9 O J O X A F10 L a P 4 command F11 J + optie

Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?

Relevant costs; special order pricingKantrovitz Company is a manufacturer of industrial components. One of its products, AP110, is used as a subcomponent in appliance manufacturing. This product has the following information per unit: Selling price $150.00 Costs:   Direct material $20.00 Direct labor 15.00 Variable manufacturing overhead 12.00 Fixed manufacturing overhead 30.00 Shipping and handling 3.00 Fixed selling and administrative 10.00 Total per-unit cost $90.00 a. Kantrovitz has received a special, one-time order for 1,600 AP110 parts. Assuming Kantrovitz has excess capacity, what is the minimum price that is acceptable for beginning negotiations on this order?  Answer: $50 d. Referring to (a), Kantrovitz has received a special, one-time order for 1,600 AP110 parts. Assume that Kantrovitz is operating at full capacity, and that the contribution of the output would be displaced by the one-time special order. Using the original data, compute the minimum…

Relevant costs; special order pricingKantrovitz Company is a manufacturer of industrial components. One of its products, AP110, is used as a subcomponent in appliance manufacturing. This product has the following information per unit: Selling price $150.00 Costs:   Direct material $20.00 Direct labor 15.00 Variable manufacturing overhead 12.00 Fixed manufacturing overhead 30.00 Shipping and handling 3.00 Fixed selling and administrative 10.00 Total per-unit cost $90.00 a. Kantrovitz has received a special, one-time order for 1,600 AP110 parts. Assuming Kantrovitz has excess capacity, what is the minimum price that is acceptable for beginning negotiations on this order? $Answerb. Kantrovitz has 8,000 units of AP110 in inventory that have some defects. The units cannot be sold through regular channels without a significant price reduction. What per-unit cost figure is relevant for setting a minimum selling price on these units? $Answerc. During the next year,…

Relevant costs; special order pricingKantrovitz Company is a manufacturer of industrial components. One of its products, AP110, is used as a subcomponent in appliance manufacturing. This product has the following information per unit: Selling price $150.00 Costs:   Direct material $20.00 Direct labor 15.00 Variable manufacturing overhead 12.00 Fixed manufacturing overhead 30.00 Shipping and handling 3.00 Fixed selling and administrative 10.00 Total per-unit cost $90.00 a. Kantrovitz has received a special, one-time order for 1,000 AP110 parts. Assuming Kantrovitz has excess capacity, what is the minimum price that is acceptable for beginning negotiations on this order? $Answer   b. Kantrovitz has 5,000 units of AP110 in inventory that have some defects. The units cannot be sold through regular channels without a significant price reduction. What per-unit cost figure is relevant for setting a minimum selling price on these units? $Answer   c. During the next…

Question Content Area Moon Company uses the variable cost method of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 75,000 units of Product T are as follows: Variable costs per unit:     Direct materials $ 7.00     Direct labor 3.50     Factory overhead 1.50     Selling and administrative expenses 3.00     Total $15.00 Fixed costs: Line Item Description Amount     Factory overhead $45,000     Selling and administrative expenses 20,000 Moon desires a profit equal to an 18% return on invested assets of $1,440,000. a.  Determine the amount of desired profit from the production and sale of Product T.fill in the blank 1 of 1$ b.  Determine the total variable costs for the production and sale of 75,000 units of Product T.fill in the blank 1 of 1$ c.  Determine the markup percentage for Product T. Round your answer to one decimal place.fill in the blank 1 of 1% d.  Determine the unit selling price of Product T. Round…

Period Ccb Home bart.... 5 of 15 2 Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: # Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Incremental cost per unit produced 15. What incremental manufacturing cost will Martinez incur if it increases production from 10,000 to 10,001 units? (Round your answer to 2 decimal places.) Okay 3 4 & LO 5 * 6 Average Cost per Unit $ 7.00 $ 4.50 $ 1.40 7 $4.00 $ 4.00 $ 2.10 $ 1.10 $ 0.55 You 8 I ! 9 11 ? 0 delete return

Product Cost Method of Product Costing Voice Com, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,310 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $67 per unit Factory overhead $198,000 Direct labor 37 Selling and admin. exp. 71,400 Factory overhead 22 Selling and admin. exp. 18 Total variable cost per unit $144 per unit Voice Com desires a profit equal to a 16% rate of return on invested assets of $601,800. a. Determine the amount of desired profit from the production and sale of 5,310 units of cell phones. 2$ b. Determine the product cost per unit for the production of 5,310 of cell phones. If required, round your answer to nearest dollar. per unit c. Determine the product cost markup percentage (rounded to two decimal places) for cell phones. % d. Determine the selling price of cell phones. Round to the nearest dollar. Total Cost per unit Markup per unit Selling price…