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What is the total cost per component associated with using Bello Company as the supplier?
a.$8.95
b.$12.00
c.$15.74
d.$84.26
23.Refer to Hamilton Company. Suppose that Hamilton loses $2,500,000 in sales per year because of its reputation for defective units attributable to failed components. Using warranty hours, assign the proportional cost of lost sales to Traynor, Inc. What would be the new cost per unit as a result of the lost sales?
a.$4.00 per unit
b.$8.15 per unit
c.$8.95 per unit
d.$25.00 per unit
24.Refer to Hamilton Company. Suppose that Hamilton loses $2,500,000 in sales per year because of its reputation for defective units attributable to failed components. Using warranty hours, assign the proportional cost of lost sales to Bello Company. What would be the new cost per unit as a result of the lost sales?
a.$11.34 per unit
b.$20.00 per unit
c.$44.11 per unit
d.$55.00 per unit
25.Producing 10,000 units of a cell phone requires $300,000 of prime costs, uses 2,000 machine hours, and takes 1,200 setup hours. The activity rates are $40 per machine hour and $100 per setup hour. What is the unit cost of a cell phone?
a.$30
b.$40
c.$50
d.$60
26.A company has two inspectors, each earning a salary of $75,000. One inspector works exclusively on inspecting parts received from outside suppliers, while the other spends 30% of her time inspecting parts and 70% of her time inspecting final products. How much labour cost should be assigned to the activity of inspecting parts?
a.$75,000
b.$95,000
c.$97,500
d.$100,000
27.Last year, Stevita Inc. shipped 3,000,000 kg of goods to customers at a cost of $2,400,000. Suppose an individual customer orders 20,000 kg and produces $400,000 of revenue. (The total revenue is $40 million.) What amount of shipping cost would be assigned to the customer when using activity-based costing?
a.$4,000
b.$8,000
c.$16,000
d.$24,000
DriverActivityFixed Variable
Labour hoursMaterials-0-20
Labour hoursLabour-0-10
Machine hoursMaintenance10,0008
Machine hoursMachining50,0002
Number of setupsInspections30,000200
Number of setupsSetups-0-300
Number of purchase ordersPurchasing75,0003
What is the budgeted inspection cost for 20 setups?
a.$30,000
b.$34,000
c.$40,000
d.$175,860
The receiving department of Owen has three activities: unloading, counting goods, and inspecting. Unloading requires a forklift that is leased for $15,000 per year. The forklift is used only for unloading. The fuel for the forklift is $2,000 per year. Inspection requires special testing equipment that has a depreciation of $500 per year and an operating cost of $1,000 per year. Receiving has four employees who each have an average salary of $35,000 per year. The work distribution matrix for the receiving personnel is as follows:
Percentage of Time
Activity on Each Activity
Unloading25%
Counting40%
Inspecting35%
29.Refer to Owen. What is the cost of unloading?
a.$50,500
b.$52,000
c.$54,000
d.$56,000
30.Refer to Owen. What is the cost of counting?
a.$50,500
b.$52,000
c.$54,000
d.$56,000
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