Adams Enterprises makes a variety of products that it sells to other businesses. The company’s activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that ABC system are listed below:   Activity Cost Pool Activity Measure Activity Rate Supporting assembly Direct labor hours $3.20 per hour Processing batches Number of batches $103.80 per batch Processing orders Number of orders $98.65 per order Serving customers Number of customers $1,488.00 per customer   The cost of serving customers, $1,488.00 per customer, is the cost of serving a customer for one year. Yousif Corporation buys only one of the company’s products, which Adams Enterprises sells for $25.00 per unit. Last year Yousif Corporation ordered a total of 900 units of this product in 3 orders. To fill the orders, 11 batches were required. The direct materials cost is $8.20 per unit and the direct labor cost is $7.65 per unit. Each unit requires 0.40 DLHs. According to the ABC system, the total cost of the activity “Supporting assembly” for this customer this past year was:  

Fielder Corporation has provided the following data from its activity-based costing system:     Activity Cost Pools   Total Cost   Activity Driver   Driver Units   Assembly $1,137,360 Machine hours 84,000 hours   Processing orders $28,479 Orders 1,100 orders   Inspection $97,155 Inspection hours 1,270 hours   The company makes 470 units of product W26B a year, requiring a total of 660 machine-hours, 50 orders, and 40 inspection-hours per year. The product’s direct materials cost is $40.30 per unit and its direct labor cost is $42.22 per unit. The product sells for $118.00 per unit.   According to the activity-based costing system, the product margin for product W26B is:  

Bellue Inc. manufactures a single product. Variable costing net operating income was $96,300 last year and its inventory decreased by 2,600 units. Fixed manufacturing overhead cost was $1 per unit for both units in beginning and in ending inventory. What was the absorption costing net operating income last year?

Would the following activities at a manufacturer of canned soup be best classified as unit-level, batch-level, product-level, or organization-sustaining activities?     Researching new processing methods Shipping orders to grocery stores A) Organization-sustaining Unit B) Batch Batch C) Product Unit D) Organization-sustaining Batch  

Pungent Corporation manufactures and sells a spice rack. Shown below are the actual operating results for the first two years of operations:     Year 1 Year 2   Units (spice racks) produced   40,000   40,000 Units (spice racks) sold   37,000   41,000 Absorption costing net operating income $ 44,000 $ 52,000 Variable costing net operating income $ 38,000   ???   Pungent’s selling price and unit variable cost and total fixed cost were the same for both years. What is Pungent’s variable costing net operating income for Year 2?

Caldwell Company has provided the following inventory balances and manufacturing cost data for the month of January:   Inventories January 1 January 31 Direct materials $30,000 $40,000 Work in process $15,000 $20,000 Finished goods $65,000 $50,000   Month of January   Cost of goods manufactured $515,000 Manufacturing overhead applied $150,000 Direct materials used $190,000 Actual manufacturing overhead $144,000   Under Caldwell’s job-order costing system, any over or under-applied overhead is closed  to the Cost of Goods Sold account at the end of the calendar year (i.e., December 31).   What was the total amount of direct material purchases during January?

Penn Corporation has a single product whose selling price is $10. At an expected sales level of $1,000,000, the company’s variable expenses are $600,000 and its fixed expenses are $300,000. The marketing manager has recommended that the selling price be increased by 20%, with an expected decrease of only 10% in unit sales. What would be the company’s net operating income if the marketing manager’s recommendation is adopted?

Edwards Company uses job-order costing. Manufacturing overhead is applied using a predetermined rate of 150% of direct labor cost. Any over- or under-applied manufacturing overhead is closed to the Cost of Goods Sold account at the end of each month. Additional information is available as follows:   Job 101 was the only job in process at January 31. The job cost sheet for this job contained the following costs at the beginning of the month:   Direct materials $4,000 Direct labor $2,000 Applied manufacturing overhead $3,000   Jobs 102, 103, and 104 were started during February. Direct materials requisitions for February totaled $26,000. Direct labor cost of $20,000 was incurred for February. Actual manufacturing overhead was $32,000 for February. The only job still in process at February 28 was Job 104, with costs of $2,800 for direct materials and $1,800 for direct labor. The cost of goods manufactured for February was:

The following costs were incurred during May: Direct Materials $41,000 Direct Labor $13,000 Manufacturing Overhead $46,000 Selling Expenses $18,000 Administrative Expenses $15,000   What were total conversion costs for the month of May?

Darden Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 18,000 units in its beginning work in process inventory that were 10% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $16,200. An additional 84,000 units were started into production during the month. A total of 85,000 units were completed and transferred out during the period. There were 17,000 units in the ending work in process inventory of the Welding Department that were 70% complete with respect to conversion costs. A total of $836,880 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs for the month is closest to: