Could you please help with Managerial Accounting multiple choice question.

1.

Which of the following statements is not a unit level activity?

NOTE: This question was modified on 10-10-11. If you received your Study Reference Guide before that date, you have been sent, via e-mail, revised lessons that include the modification to this question.

	A)	Processing units on machines
	B)	Processing units by hand
	C)	Testing new products
	D)	Consuming factory supplies

2.

Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 8,000 units and of Product B is 6,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows:

		Expected Activity
Activity Cost Pool	Estimated Cost	Product A	Product B	Total
Activity 1	$20,000	100	400	500
Activity 2	$37,000	800	200	1,000
Activity 3	$91,200	800	3000	3,800

The cost per unit of Product A under activity-based costing is closest to:

A)

$2.40

B)

$3.90

C)

$10.59

D)

$6.60

3.

The following information pertains to Questions 7 10 below:

Acton Company has two products: A and B. The annual production and sales of Product A is 800 units and of Product B is 500 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.3 direct labor-hours per unit and Product B requires 0.2 direct labor-hours per unit. The total estimated overhead for next period is $92,023.

The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools Activity 1, Activity 2, and General Factory with estimated overhead costs and expected activity as follows:

		Expected Activity
Activity Cost Pool	Estimated Overhead Costs	Product A	Product B	Total
Activity 1	$14,487	500	600	1,100
Activity 2	$64,800	2,500	500	3,000
General Factory	$12,736	240	100	340
Total	$92,023

(Note: The General Factory activity cost pools costs are allocated on the basis of direct labor-hours.)

Q . The overhead cost per unit of Product A under the activity-based costing system is closest to:

	A)	$86.97
	B)	$70.79
	C)	$81.20
	D)	$11.24