Marcus Company uses an activity-based costing system with th

1. Marcus Company uses an activity-based costing system with three activity cost pools: assembly, set up and other. The company has provided the following data concerning its costs and its activity based costing system. Wages and Salaries $260,000; Depreciation $220,000; Utilities $140,000. The costs were consumed as follows:
Assembly Set-up Other
Wages and Salaries 50% 25% 25%
Depreciation 20% 30% 50%
Utilities 25% 45% 30%

How much cost, in total, would be allocated in the first-stage allocation to the assembly activity cost pool?

2. Burke Corporation’s activity-based costing system has three activity cost pools – Fabricating, Setting Up, and Other. Costs in the Fabricating cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. The activity rate for Fabricating is $1.08 per MH and the activity rate for Setting Up is $5.20 per batch. The following table shows the machine-hours and number of batches associated with each of the company’s two products.
Product M13 Product D1
Machine Hours 7,000 13,000
Batches 200 1,800

Determine the amount of overhead cost that would be assigned to Produce M13 using activity-based costing.

3. Amy Company makes collections on sales according to the following schedule: 30% in the month of sale, 60% in the month following sale and 8% in the second month following sale. The following sales are expected: $100,000 in January; $120,000 in February; and $110,000 in March. Cash collections in March should be budgeted to be:

4. Matt Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year: Finished goods: beginning – 20,000 units, ending – 70,000 units; Raw materials: beginning – 50,000 grams, ending 40,000 grams. Each unit of finished good requires 2 grams of raw material. If the company plans to sell 670,000 units during the year, how many grams of raw material should be purchased?

5. Adam Corporation is working on its cash budget for November. The budgeted beginning cash balance is $24,000. Budgeted cash receipts total $177,000 and budgeted cash disbursements total $167,000. The desired ending cash balance if $50,000. To attain its desired ending cash balance for November, the company needs to borrow:

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