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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

PLEASE SHOW CALCULATIONS TO RATE IT!

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