Snavely, Inc., manufactures and sells two products: Product E1 and Product A7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected ProductionDirect Labor-Hours Per UnitTotal Direct Labor-HoursProduct E18005.04,000Product A73002.0600Total direct labor-hours 4,600The direct labor rate is $18.40 per DLH. The direct materials cost per unit for each product is given below: Direct MaterialsCost per UnitProduct E1$127.10Product A7$299.80The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: EstimatedExpected ActivityActivity Cost PoolsActivity MeasuresOverhead CostProduct E1Product
A7TotalLabor-relatedDLHs$100,0964,0006004,600Machine setupssetups 47,208300400700Order sizeMHs 738,3684,1004,2008,300 $885,672 The activity rate for the Order Size activity cost pool under activity-based costing is closest to:
A. $65.12 per MH
B. $192.54 per MH
C. $166.83 per MH
D. $88.96 per MH
Answer: D
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Technical constraints have been carefully considered when developing a project network. Which of the following is true at this point?
A. Resources have been assigned to each activity so they are adequate to complete the project on time B. The project is ready to be implemented C. Technical dependencies between activities are known D. The project completion date can be established E. All of these are true statements once technical constraints have been established
Activity Based Costing is most appropriate for a company that produces only one product
Indicate whether the statement is true or false
An advertising plan is crucial to an ad campaign because it
A. is required by the accounting department. B. stimulates demand for a product category. C. offers insights into the creative leadership of mass media buyers. D. is the basis for sales commissions. E. will later be used to measure the success or failure of the campaign.
What is the expected shortage per cycle under this policy?
A) 1 phone B) 2.2 phones C) 4.5 phones D) 9.8 phones