QUESTION 39

1. Using the following Data for this requirement: Note: Use the provided Assumed Overhead rates. Do not use the rates computed in questions 33-36.
   One particular batch of 50 luxury handbags had the following specifications:
   Batch Activity	Assumed Overhead Rate
   10 Direct labor hours	$18 per hour
   5 Purchase orders	5 per order
   3 Shipments received	3 per shipment
   2 Setups	50 per setup
   13 Inspections	6 per inspection

   Calculate the overhead to be allocated to the handbags under the activity-based costing method for the Machine Setups Activity.

   		$90
   		$85
   		$100
   		$125

QUESTION 40

1. Using the following Data for this requirement: Note: Use the provided Assumed Overhead rates. Do not use the rates computed in questions 33-36.
   One particular batch of 50 luxury handbags had the following specifications:
   Batch Activity	Assumed Overhead Rate
   10 Direct labor hours	$18 per hour
   5 Purchase orders	5 per order
   3 Shipments received	3 per shipment
   2 Setups	50 per setup
   13 Inspections	6 per inspection

   Calculate the overhead to be allocated to the handbags under the activity-based costing method for the Quality Control/Inspections Activity.

   		$75
   		$80
   		$78
   		$100