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Fantasmas Incorporated had the following information: ​ Activity Driver Unit Variable Cost Level of Activity Driver Units sold $         20    — Setups  1,200    60 Engineering hours     52 1,500       Other data:         Total fixed costs (traditional) $600,000       Total fixed costs (ABC) $360,000       Unit selling price      $         60   ​ Suppose Fantasmas could reduce setup costs by $300 per setup and could reduce the number of engineering hours needed to 1,400 hours. How many units must be sold to break even in this case?

Alana Company manufactures books. Manufacturing a book takes 10 units of A1 and 1 unit of A2. Scheduled production of books for the next two months is 1,000 and 1,200 units, respectively. Beginning inventory is 4,000 units of A1 and 30 units of A2. The ending inventory of A1 is planned to decrease 500 units in each of the next two months, and the A2 inventory is expected to increase 5 units in each of the next two months. ​ How many units of A2 are expected in the raw material inventory at the end of the second month?

Citizens Bank has two bank locations: Main and Suburbs. The central office provides check-processing services for the two banks. Information pertaining to the banks is as follows:     Check Processing Main Suburbs Budgeted fixed costs $100,000 – – Budgeted variable rate per hour $         20 – – Normal usage in hours        – 600 400         Actual fixed costs $107,500 – – Actual variable costs $  17,500 – – Actual usage in hours – 550 250 ​ Required: ​ a. Use the direct method to allocate the check-processing center costs to each bank to provide information for setting service charges. b. Use the direct method to allocate the check processing center costs to each bank for performance evaluation purposes. c. Determine the costs of the check-processing center NOT allocated to the two banks. Why were these costs not allocated to the operating units?

Compare and contrast static budgets, flexible budgets, and activity-based budgets.

In __________ a single product is produced on a continuous basis.

A secondary product recovered in the course of manufacturing a primary product during a joint process is called a:

A company incurred $120,000 of common fixed costs and $180,000 of common variable costs. These costs are to be allocated to Departments XX and YY. Data on capacity provided and capacity used are as follows: ​   Capacity Provided Capacity Used Department in Hours in Hours       XX 500 400       YY 300 400 ​ Assume that common fixed costs are to be allocated to Departments XX and YY on the basis of capacity provided and that common variable costs are to be allocated to Departments XX and YY on the basis of capacity used. The fixed and variable costs allocated to Department XX are Fixed Variable

Barron Enterprises has the following information about its truck fleet miles and operating costs:   Year Miles Operating Costs 2016 400,000 $256,000  2017 480,000 280,000 2018 560,000 320,000 ​ What is the best estimate of total costs using the high-low method if the expected fleet mileage for 2018 is 500,000 miles?

Boysenberry Company manufactures a product that passes through two processes: Grinding and Mixing. Boysenberry adds all manufacturing costs uniformly in the Grinding Department. Information relating to the Grinding Department for November follows: ​ Work in process, November 1: ​ Units (75% complete) 1,500 ​ Direct materials $12,500 ​ Direct labor $10,000 ​ Overhead $  8,000 ​ ​ During November, 4,500 units were completed and transferred to the Mixing Department.  The following costs were incurred by the Mixing Department during November: ​ Direct materials $42,000 Direct labor 60,000 Overhead 15,000 ​ There were 250 units that were 60 percent complete remaining in Grinding Department on November 30. Determine the equivalent units of production using the weighted average method.

In an activity-based costing system activity cost is applied to each job by multiplying productivity rate by the job’s use of the associated driver.