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##### 8. Small Industries has fixed costs of \$ 100,000 a...

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8. Small Industries has fixed costs of \$ 100,000 and breakeven sales of \$ 800,000. What is the firm?s estimated pre-tax profit at \$ 1,200,000 sales? A) \$75,000 B) \$50,000 C) \$25,000 D) \$ 5,000 14. Conan Company's monthly activity level ranged from a low of 17,000 units in May to a high of 26,000 units in October. Average production was 20,000 units per month. Utilities cost was \$8,250 in May and \$10,500 in October. The variable utility cost per unit, to the nearest cent, is: A) \$0.49. B) \$0.47. C) \$0.25. D) \$0.40. 26. NoIdea Records Company uses activity-based costing. The company produces CDs and DVDs. The estimated costs and expected activity for each of the activity pools follow: Activity Estimated Expected Activity Cost Pool Cost DVDs CDs Total Activity 1 \$31,350 8,000 3,000 11,000 Activity 2 \$23,800 5,000 2,000 7,000 Activity 3 \$55,200 8,000 4,000 12,000 Total costs which would be charged to DVDs would be: A. \$110,50. B. \$36,800. C. \$76,600. D. \$59,850. 27. SnowBird Company produces two products, X and Y. The annual production and sales of product X and Y are 1,200 and 750 units, respectively. The company has traditionally used direct labor hours to apply manufacturing overhead. Product X requires 0.6 labor hours per unit and product B requires 0.4 labor hours per unit. The company has decided to utilize activity based costing with three cost pools. Estimated costs for each pool are as follows: Overhead Expected Activity Cost Pool COST Product X Product Y Total Activity 1 \$72,075 225 210 435 Activity 2 \$50,640 1,000 375 1,375 General Factory \$96,042 60 75 135 Total \$218,757 The predetermined overhead rate for activity 1 using activity based costing system is closest to: A. \$490.86. B. \$320.24. C. \$343.20. D. \$165.66. Use the following information for questions 28 - 29. RossSignal Company?s market for the Model 225CM ski has declined, and RossSignal has had to drop the price per pair from \$795 to \$375. There are some pairs in the work in process inventory that have costs of \$450 per pair associated with them. RossSignal could sell these skis in their current state for \$300 per pair. It will cost RossSignal \$30 per pair to complete these skis so that they can be sold for \$375 per pair. 28. When the incremental revenues and expenses are analyzed, the company is better off by A. \$375 per pair if they complete the units. B. \$45 per pair if they complete the units. C. \$30 per pair if the sell the units in their current state. D. \$75 per pair if they sell the units in their current state. 29. Which of the following is the amount of sunk costs in this problem? A. \$795 per pair B. \$450 per pair C. \$375 per pair D. \$30 per pair 30. Picayune Company estimates that ordering costs are \$6.00 per order, picking costs are \$4.50 per unique item ordered, packing costs are \$0.075 per item, and return costs are \$135.00 per return. A customer orders \$30,000 worth of goods with direct costs of \$24,000. The customer places 200 orders, orders 240 unique items, 1600 items, and makes 22 returns. What is the profit (loss) on this customer? A. \$6,000 B. \$630 C. (\$300) D. \$1200,Would you be able to show step by step so that I may get a full understanding. Thanks

Paper#10277 | Written in 18-Jul-2015

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