2024 – 1 A duration driver is a A simple count of the number

1. A duration driver is :
a. A simple count of the number of times an activity occurs.
b. An activity measures that is used for the life of an activity- based costing system.
c. An activity measures that is used for the life of company.
d. A measures of the amount of time required to perform an activity.

2. Spendlove corporation has provided the following data from its activity-based costing system

Activity cost pool	Total cost	Total activity
Assembly	$1,282,140	61,200	Machine- hours
Processing orders	$53,958.00	20,40	Orders
Inspection	$181,350	23,40	Inspection- hour

 
The company makes 1,100 units of product S78N a year, requiring a total of 12,00 machine hours, 131 orders, and 31 inspection-hour per year. The product’s direct material cost is $50,89 per units and its direct labor cost is $20.56 per unit. The product sells of $113.30 per unit.
According to the activity-based costing system, the product margin for product S78N is : (Round your intermediate calculation to 2 decimal place).
a. $117,430.05
b. $46,035.00
c. $18,492.05
d. $15,027.55
 
3.Matt Company used activity- based costing. The company has two product. A and B. the annual production and sales of product A is 9,000 units and of product B is  6,500 units. There are three activity cost pool with total activity as follow:

		Total Activity
Activity Cost Pool	Total Cost	Product A	Product B	Total
Activity 1	$36,260	250	350	700
Activity 2	$48,037	880	330	1,210
Activity 3	$120,450	850	3,530	4,380

The activity based costing cost per unit of product Ais closest to:
a. $14.33
b. $4.54
c. $7.84
d. $3.94

4. The controller Ferrence Company estimates the amount of material handing  overhead cost that should be allocated to the company’s two product using the data that are given below:

	Wall Mirrors	Specialty Windows
Total Expected Units Produced	11,900	1,710
Total Expected Material Moves	1,190	1,610
Expected Direct Labor- Hour Per Unit	7	8

The total material handing cost for the year is expected to be $17,148.70.
If the material handing cost is allocated on the basis of direct labor- hours, how much of the total material handing cost would e allocated to the wall mirrors?
a. $9,566
b. $14,727
c. $12,894
d. $7,917