Exam 27: Appendix C: Activity-Based Costing

Portofino Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Data concerning two products appear below: How much overhead cost would be assigned to Product KJ22 using the activity-based costing system?

Portofino Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Data concerning two products appear below: How much overhead cost would be assigned to Product KL37 using the activity-based costing system?

Kozlov Corporation has provided the following data from its activity-based costing system: The company makes 430 units of product A21W a year,requiring a total of 690 machine-hours,40 orders,and 10 inspection-hours per year.The product's direct materials cost is $35.72 per unit and its direct labor cost is $29.46 per unit.According to the activity-based costing system,the total overhead cost of producing 420 units of A21W is:

An activity-based costing system usually involves a fewer number of allocation bases compared with a traditional cost allocation system.

Borden Corporation uses an activity-based costing system with three activity cost pools.The company has provided the following data concerning its costs and its activity based costing system: Distribution of resource consumption: How much cost,in total,would be allocated in the first-stage allocation to the Assembly activity cost pool?

In activity-based costing,there are a number of activity cost pools,which consist of activities that belong to the same process and/or are caused by the same cost driver.

The following is taken from Jeffers Company's internal records of its factory with two operating departments.The cost driver for indirect labor is direct labor costs,and the cost driver for the remaining items is number of hours of machine use.Compute the total amount of overhead allocated to Dept.1 using activity-based costing.

Quantum Corporation has provided the following data from its activity-based costing system: The company makes 340 units of product J71B a year,requiring a total of 980 machine-hours,36 orders,and 22 inspection-hours per year.The product's direct materials cost is $27.50 per unit and its direct labor cost is $18.10 per unit.According to the activity-based costing system,the total cost for producing the 340 units of the J71B product is:

Activity-based costing uses pre-determined overhead rates to allocate costs.

Founder Consulting Corporation has its headquarters in Memphis and operates from three branch offices in Nashville,Atlanta,and Louisville.Two of the company's activity cost pools are Administrative Service and Development Service.These costs are allocated to the three branch offices using an activity-based costing system.Information for next year follows: Estimated branch data for next year is as follows: How much of the headquarters cost allocation should Nashville expect to receive next year?