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What is the total cost per component associated with using Bello Company as the supplier

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

 

Mar 13 2020 View more View Less

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