Part I: PROBLEM- SOLVING. Direction: Answer the requirement for each problem. Show your work.

Question 1. XYZ Corporation has provided the following data from its activity-based costing system:

Activity Cost Pool	Total Cost	Total Activity
Assembly	$ 942,480	66,000 Machine Hours
Processing Orders	$ 85,050	1,800 Orders
Inspection	$ 126,854	1,820 Inspection Hours

Furthermore, data concerning product ABC appears below:

Selling price per unit	$ 150.20
Direct Materials Cost per unit	$ 20.06
Direct labor Cost per unit	$ 45.04
Annual Unit Production & Sales	408
Annual Machine Hours	195
Annual Orders	80
Annual Inspection Hours	30

1. Calculate the activity rate for product ABC for all of the activity cost pools. (6 Marks)
2. What is the total activity cost rate for product ABC? (2 Marks)
3. What is the average cost of product ABC? (2 Marks)

Question 2. Interprest the following information through an Income Statement for product A401F of Ahmed Corporation. (10 Marks)

Number of Units Produced and Sold Annually	59,250 units
Selling Price per unit	BD 242
Variable Cost per Unit:
Direct Materials	BD 12.500
Direct Labor	BD 8.300
Selling & Administrative Expenses	BD 3.400
Fixed cost Per Year:
Manufacturing Overhead	BD 124,370
Selling & Administrative Expenses	BD 76,520

Subject: MANAGERIAL ACCOUNTING Note: Please Write from a Computer or Laptop