ANSWER FOR QUESTION # 4 IS $ 126.75 AND FOR QUESTION # 6 IS A. $127500 IF YOU COME UP WITH A DIFFERENT ANSWER PLEASE DO NOT SUBMIT IT BECAUSE I HAVE TO ASK AGAIN AS ALWAYS DO THEN I CAN LOSE ONE QUESTION. The next three questions are based on the following information:Alrex company is using an activity-based costing (ABC) system. The company produces and sells two products: Basic andPro. The company consists of two departments: Production (where all manufacturing activities are taken) and Marketing(which engages in sclling and admin activity only). The ABC'system includes in unit product costs all costs casily associatedwith units. In addition, in the ABC system, there are four major indirecet activities: Machine Setaps, Special Processing.Factory Supervision, and Customer Relation.The prices, direct material cost (DM), shipping cost and direct labor-hours (DLHS) are given below for one unit of theproduct, as well as the total units produced and sold.HourlyWage-DL$10ProductPriceDMDLHSShipping CostUnitsBasicS180$501$26,000Pro$320$802$12$44,000The company collected the data for ABC as follows:Activity measures usedEstimated OH.Activity Cost PoolActivity Measure# of setupsBasiccost$ 472,500$ 360,000$ 224,000$ 240,000ProMachine SetupSpecial ProcessingFactory SupervisionCustomer Relation (10 customers)60120Machine hours6,00010,000DLH# of customers4 Under the ABC system, what is the unit product cost for Basic? (Choose the closest amount,)A.$275.00В.$126.75C.$124.75D.$130.75E. None of the above5 Batch-level activities include (choose the most complete answer):A. Machine SetupB. Special ProcessingC. Factory SupervisionD. Machine Setup, Special Processing, and Factory SupervisionE. Special Processing and Factory Supervision 6 The company has two major customers (A and B), who buy their products in the amounts in the table below.CustomerBasicA2,000 units1,000 unitsB800Pro1,200How much is the ABC customer margin of customer B? (Choose the closest amount.)A. $ 127,500B. $ 135,500C. $ 151,500D. $ 159,500E. None of the above.

A batch level activity is one that is performed with each batch i.e. they vary per batch and not per…

Answered: 4 IS $ 126.75 AND FOR QUESTION # 6 IS…

4 IS $ 126.75 AND FOR QUESTION # 6 IS A. $127500 IF YOU COME UP WITH A DIFFERENT ANSWER PLEASE DO NOT SUBMIT IT BECAUSE I HAVE TO ASK AGAIN AS ALWAYS DO THEN I CAN LOSE ONE QUESTION.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

ANSWER FOR QUESTION # 4 IS $ 126.75 AND FOR QUESTION # 6 IS A. $127500

IF YOU COME UP WITH A DIFFERENT ANSWER PLEASE DO NOT SUBMIT IT BECAUSE I HAVE TO ASK AGAIN AS ALWAYS DO THEN I CAN LOSE ONE QUESTION.

The next three questions are based on the following information:
Alrex company is using an activity-based costing (ABC) system. The company produces and sells two products: Basic and
Pro. The company consists of two departments: Production (where all manufacturing activities are taken) and Marketing
(which engages in sclling and admin activity only). The ABC'system includes in unit product costs all costs casily associated
with units. In addition, in the ABC system, there are four major indirecet activities: Machine Setaps, Special Processing.
Factory Supervision, and Customer Relation.
The prices, direct material cost (DM), shipping cost and direct labor-hours (DLHS) are given below for one unit of the
product, as well as the total units produced and sold.
Hourly
Wage-DL
$10
Product
Price
DM
DLHS
Shipping Cost
Units
Basic
S180
$50
1
$2
6,000
Pro
$320
$80
2
$12
$4
4,000
The company collected the data for ABC as follows:
Activity measures used
Estimated OH.
Activity Cost Pool
Activity Measure
# of setups
Basic
cost
$ 472,500
$ 360,000
$ 224,000
$ 240,000
Pro
Machine Setup
Special Processing
Factory Supervision
Customer Relation (10 customers)
60
120
Machine hours
6,000
10,000
DLH
# of customers
4 Under the ABC system, what is the unit product cost for Basic? (Choose the closest amount,)
A.
$275.00
В.
$126.75
C.
$124.75
D.
$130.75
E. None of the above
5 Batch-level activities include (choose the most complete answer):
A. Machine Setup
B. Special Processing
C. Factory Supervision
D. Machine Setup, Special Processing, and Factory Supervision
E. Special Processing and Factory Supervision

6 The company has two major customers (A and B), who buy their products in the amounts in the table below.
Customer
Basic
A
2,000 units
1,000 units
B
800
Pro
1,200
How much is the ABC customer margin of customer B? (Choose the closest amount.)
A. $ 127,500
B. $ 135,500
C. $ 151,500
D. $ 159,500
E. None of the above.

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