Allocation rate per packing using activity-based costing

Question

Question 1: During September, 40,000 units were produced. The standard quantity of material allowed per unit was 5 pounds at a standard cost of $2.50 per pound. If there was a favorable usage variance of $25,000 for September, the actual quantity of materials used must have been

• 210,000 pounds.
• 190,000 pounds.
• 105,000 pounds.
• 95,000 pounds.

Question 2: Zipp Company manufactures two products (X and Y). The overhead costs ($84,000) have been divided into three cost pools that use the following activity drivers:

Product Number of Setups Machine Hours Packing Orders

X 10   500  75
Y 10 2,000 175

Cost per pool $9,000 $60,000 $15,000

What is the allocation rate per packing order using activity-based costing?

• $15,000
• $60
• $7,500
• $200

Question 3: If a support department's costs were budgeted to be $150,000 and actual costs incurred by the support department were $200,000, the total amount of the support department's costs that should be allocated to other departments is:

• $350,000.
• $200,000.
• $150,000.
• $50,000.