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McCaskey Corporation uses an activity-based costing system with the following three activity cost pools:

Activity Cost Pool	Total Activity
Fabrication	30,000	machine-hours
Order processing	375	orders
Other	N/A

The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs.

The company has provided the following data concerning its costs:

Wages and salaries	$451,000
Depreciation	142,000
Occupancy	168,000
Total	$761,000

The distribution of resource consumption across activity cost pools is given below:

	Activity Cost Pools
	Fabrication	Order Processing	Other	Total
Wages and salaries	10%	80%	10%	100%
Depreciation	20%	15%	65%	100%
Occupancy	5%	75%	20%	100%

The activity rate for the Fabrication activity cost pool is closest to:

	$6.34 per machine-hour
	$2.73 per machine-hour
	$0.34 per machine-hour
	$1.94 per machine-hour
Spendlove Corporation has provided the following data from its activity-based costing system:

Activity Cost Pool	Total Cost	Total Activity
Assembly	$1,660,260	59,000	machine-hours
Processing orders	$69,455.70	2,290	orders
Inspection	$126,338	1,810	inspection-hours

The company makes 780 units of product S78N a year, requiring a total of 1,140 machine-hours, 64 orders, and 36 inspection-hours per year. The product's direct materials cost is $58.21 per unit and its direct labor cost is $14.69 per unit. The product sells for $124.00 per unit.

According to the activity-based costing system, the product margin for product S78N is: (Round your intermediate calculations to 2 decimal places.)

	$39,858.00
	$3,324.48
	$5,837.28
	$5,265.60
Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 10,000 units and of Product B is 8,500 units. There are three activity cost pools, with total cost and total activity as follows:

		Total Activity
Activity Cost Pool	Total Cost	Product A	Product B	Total
Activity 1	$31,280	190	490	680
Activity 2	$47,040	880	240	1,120
Activity 3	$131,200	850	3,250	4,100

The activity-based costing cost per unit of Product A is closest to: (Round your intermediate calculations to 2 decimal places.)

	$.79
	$5.89
	$11.28
	$7.29
The controller of Ferrence Company estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data that are given below:

	Wall Mirrors	Specialty Windows
Total expected units produced	14,300	1,900
Total expected material moves	1,430	1,800
Expected direct labor-hours per unit	14	4

The total materials handling cost for the year is expected to be $16,812.20.

If the materials handling cost is allocated on the basis of direct labor-hours, how much of the total materials handling cost would be allocated to the Wall Mirrors? (Round your intermediate calculations to 4 decimal places.)

	$11,035
	$9,386
	$16,196
	$14,363

A duration driver is:

	A measure of the amount of time required to perform an activity.
	An activity measure that is used for the life of the company.
	An activity measure that is used for the life of an activity-based costing system.
	A simple count of the number of times an activity occurs.

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