The following information is available for Dakota Company: Product 1Product 2Sales$1,400,000$1,800,000Direct materials(200,000)(400,000)Direct labor(600,000)(600,000)Manufacturing overhead*  (500,000)  (500,000)Gross margin$   100,000$   300,000*allocated based on direct labor hoursDakota Company has decided to allocate its manufacturing overhead cost using activity-based costing. Manufacturing overhead will be allocated based on batch-level and product line manufacturing as follows: Total   Manufacturing   Overhead CostsProduct 1Product 2Batch-level manufacturing overhead$600,00020 batches60 batchesProduct line manufacturing overhead$400,00010 lines   40 lines     What is Dakota Company's gross margin for Product 2 using activity based costing? $350,000$30,000$480,000$300,000

A manufacturing company has the following budgeted overhead costs: Indirect materials: $0.50 per unit; Utilities: $0.25 per unit; Supervisory salaries: $60,000; Building rent: $80,000. If the company expects to produce 200,000 units using 100,000 hours of direct labor, the standard overhead rate will be $ per direct labor hour.

A company's flexible budget for the range of 50,000 units to 60,000 units of production showed variable overhead costs of $2 per unit and fixed overhead costs of $99,000. The company incurred total overhead costs of $204,600 while operating at a volume of 55,000 units. The total controllable cost variance is:

Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information:Activity Cost Driver Amount M XYProduction setups Number of setups $ 80,000 15 35Material handling Number of parts 55,000 54 36Packaging costs Number of units 249,000 96,000 64,000    $ 384,000    What is the total overhead per unit allocated to Product M using activity-based costing (ABC)?Note: Do not round intermediate calculations; round your final answer to the nearest cent.Multiple Choice

A manufacturing company has variable overhead costs of $2.50 per unit and fixed costs of $5,000 per month. Each unit requires 4 hours of direct labor and the company expects to produce 2,000 units each month. The standard overhead rate will be $ per direct labor hour.

During its first month of operations, a manufacturer incurs the following costs (in dollars) related to activities within its factory:Direct materials $15,000Direct labor $30,000Manufacturing overhead $40,000What amount should be reported as cost of goods sold on the income statement if 5,000 units are produced and 4,000 are sold? $56,000 $68,000 $70,000 $85,000