Activity-Based Costing System Assignment
A: Boesenhofer, Inc., manufactures and sells two products: Product N6 and Product N7. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
| Estimated | Expected Activity | |||||
| Activity Cost Pools | Activity Measures | Overhead Cost | Product N6 | Product N7 | Total | |
| Labor-related | DLHs | $ | 345,060 | 2,100 | 5,000 | 7,100 |
| Machine setups | setups | 128,534 | 600 | 800 | 1,400 | |
| Order size | MHs | 107,598 | 4,100 | 3,800 | 7,900 | |
| $ | 581,192 | |||||
The activity rate for the Machine Setups activity cost pool is closest to? $73.57 per setup / $91.81 per setup / $26.24 per setup / $28.32 per setup
B: If they manufacture and sells two products: Product Q5 and Product J0, the company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
| Estimated | Expected Activity | |||||
| Activity Cost Pools | Activity Measures | Overhead Cost | Product Q5 | Product J0 | Total | |
| Labor-related | DLHs | $ | 191,748 | 3,000 | 2,800 | 5,800 |
| Production orders | orders | 70,536 | 300 | 500 | 800 | |
| Order size | MHs | 295,592 | 4,300 | 4,500 | 8,800 | |
| $ | 557,876 | |||||
The activity rate for the Order Size activity cost pool under activity-based costing is closest to? $36.23 per MH / $68.48 per MH / $96.19 per MH / $33.59 per MH
C: If they manufacture and sell two products: Product T8 and Product P4, the company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
| Estimated | Expected Activity | |||||
| Activity Cost Pools | Activity Measures | Overhead Cost | Product T8 | Product P4 | Total | |
| Labor-related | DLHs | $ | 127,800 | 4,800 | 2,400 | 7,200 |
| Production orders | orders | 60,270 | 1,300 | 200 | 1,500 | |
| Order size | MHs | 942,670 | 3,900 | 3,500 | 7,400 | |
| $ | 1,130,740 | |||||
The total overhead applied to Product P4 under activity-based costing is closest to? (Round your intermediate calculations to 2 decimal places.) $882,400 / $445,865 / $496,501 / $1,002,940
D: Boesenhofer, Inc. produces and sells a single product. The selling price of the product is $170.00 per unit and its variable cost is $68.00 per unit. The fixed expense is $344,160 per month. The break-even in monthly dollar sales is closest to? (Round your intermediate calculations to 2 decimal places.) $860,400 / $516,240 / $573,600 / $344,160
E: Boesenhofer Inc. sells a product for $215 per unit. The product's current sales are 42,700 units and its break-even sales are 36,195 units. What is the margin of safety in dollars? $6,596,412 / $9,180,500 / $7,781,925 / $1,398,575
F: Boesenhofer Inc. produces and sells two products. Data concerning those products for the most recent month appear below:
| Product I49V | Product Z50U | |||||
| Sales | $ | 47,000 | $ | 52,000 | ||
| Variable expenses | $ | 13,500 | $ | 28,080 | ||
The fixed expenses of the entire company were $39,010. The break-even point for the entire company is closest to? $80,590 / $67,259 / $39,010 / $46,130
G: Boesenhofer Inc. supplied the following data:
| Tons of cement produced and sold | 260,000 | |
| Sales revenue | $ | 964,000 |
| Variable manufacturing expense | $ | 229,000 |
| Fixed manufacturing expense | $ | 304,000 |
| Variable selling and administrative expense | $ | 108,400 |
| Fixed selling and administrative expense | $ | 90,000 |
| Net operating income | $ | 232,600 |
The company's contribution margin ratio is closest to? 44.7% / 65.0% / 68.5% / 24.1%
H: If the company produces a single product and has the following cost structure:
| Number of units produced each year | 7,000 | |
| Variable costs per unit: | ||
| Direct materials | $ | 51 |
| Direct labor | $ | 12 |
| Variable manufacturing overhead | $ | 2 |
| Variable selling and administrative expense | $ | 5 |
| Fixed costs per year: | ||
| Fixed manufacturing overhead | $ | 441,000 |
| Fixed selling and administrative expense | $ | 112,000 |
The absorption costing unit product cost is? $149 per unit / $65 per unit / $63 per unit / $128 per unit
I: Boesenhofer Inc. produces a single product and has provided the following data concerning its most recent month of operations:
| Selling price | $ | 88 |
| Units in beginning inventory | 0 | |
| Units produced | 5,200 | |
| Units sold | 4,900 | |
| Units in ending inventory | 300 | |
| Variable costs per unit: | ||
| Direct materials | $ | 12 |
| Direct labor | $ | 23 |
| Variable manufacturing overhead | $ | 2 |
| Variable selling and administrative expense | $ | 5 |
| Fixed costs: | ||
| Fixed manufacturing overhead | $ | 161,200 |
| Fixed selling and administrative expense | $ | 63,700 |
The total contribution margin for the month under variable costing is: $64,200 / $249,900 / $225,400 / $98,000
J: Boesenhofer Inc. has two divisions: Division A and Division B. Data from the most recent month appear below:
| Total Company | Division A | Division B | ||||||
| Sales | $ | 591,000 | $ | 222,000 | $ | 369,000 | ||
| Variable expenses | 275,580 | 113,220 | 162,360 | |||||
| Contribution margin | 315,420 | 108,780 | 206,640 | |||||
| Traceable fixed expenses | 195,000 | 66,000 | 129,000 | |||||
| Segment margin | 120,420 | $ | 42,780 | $ | 77,640 | |||
| Common fixed expenses | 65,010 | |||||||
| Net operating income | $ | 55,410 | ||||||
The break-even in sales dollars for Division A is closest to? (Round your intermediate calculations to 2 decimal places.) $134,694 / $184,531 / $487,179 / $267,367. .
