Exam 3: Activity-Based Costing and Other Cost Management Tools

Pitt Jones Company had the following activities, allocated costs, and allocation bases: The above activities are used by departments P and Q: - What is the cost per driver unit for the account billing activity?

Quality Stereo Company has provided the following information regarding its activity-based costing system: .Purchasing department costs are allocated based on purchase orders and the cost allocation rate is $75 per purchase order. .Assembly department costs are allocated based on the number of parts used and the cost allocation rate is $1.00 per part. .Packaging department costs are allocated based on the number of units produced and the allocation rate is $2.00 per unit produced. Each stereo produced has 50 parts and the direct materials cost per unit is $70. Quality Stereo has an order for 1,000 stereos which will require 50 purchase orders. What is the selling price per unit assuming that Quality Stereo adds a 20% markup to total cost?

Brannon Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information follows: -What is the number of finished ceiling fans?

Kenney Company uses activity-based costing to account for its manufacturing process. Kenney Company produces tires, and each tire has $.50 of direct materials, includes 20 parts and requires 2 hours of machine time. Additional information follows: -What is the cost of machining per tire?

Which of the following pertains to a just-in-time production system?

Kenney Company uses activity-based costing to account for its manufacturing process. Kenney Company produces tires and each tire has $.50 of direct materials, includes 20 parts and requires 2 hours of machine time. Additional information follows: -What is the cost of materials handling per tire?

Sleep Tight Company manufactures pillows using an activity-based costing system. The following information is provided for the month of June: Each pillow consists of 4 parts, and the total direct materials cost per pillow is $3.50. - What is the total cost of materials handling and assembling for each pillow?

Brannon Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information follows: - What is the cost of assembling per ceiling fan?

Pitt Jones Company had the following activities, allocated costs, and allocation bases: The above activities are used by departments P and Q: - How much of the account inquiry cost will be assigned to Department Q?

Sleep Tight Company manufactures pillows using an activity-based costing system. The following information is provided for the month of June: Each pillow consists of 4 parts and the total direct materials cost per pillow is $3.50. - If the cost to purchase the same pillow from a supplier is $21.00, what should Sleep Tight do to maximize profits?

Pitt Jones Company had the following activities, allocated costs, and allocation bases: The above activities are used by departments P and Q: - What is the cost per driver unit for the account inquiry activity?

Crump Manufacturing has provided the following information regarding its activity-based costing system: .Purchasing department costs are allocated based on purchase orders and the cost allocation rate is $52 per purchase order. .Assembly department costs are allocated based on the number of machine hours and the cost allocation rate is $27 per machine hour. .Inspection department costs are allocated based on the number of inspection hours and the allocation rate is $39 per inspection hour. Each unit produced has a direct materials cost of $70 and a direct labor cost of $65. Crump has an Order for 500 units which will require 40 purchase orders, 750 machine hours, and 50 inspection hours. - What is Crump's operating income from the order if the units are sold for $225 each?

Sleep Tight Company manufactures pillows using an activity-based costing system. The following information is provided for the month of June: Each pillow consists of 4 parts and the total direct materials cost per pillow is $3.50. - What is the total manufacturing cost per pillow?

Pitt Jones Company had the following activities, allocated costs, and allocation bases: The above activities are used by departments P and Q: -What is the cost per driver unit for the correspondence activity?

Pitt Jones Company had the following activities, allocated costs, and allocation bases: The above activities are used by departments P and Q: - How much of the correspondence cost will be assigned to Department P?

Pitt Jones Company had the following activities, allocated costs, and allocation bases: The above activities are used by departments P and Q: - What is the cost per driver unit for the account verification activity?

Pitt Jones Company had the following activities, allocated costs, and allocation bases: The above activities are used by departments P and Q: - How much of the account verification costs will be assigned to Department P?

Brannon Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information follows: - What is the cost of materials handling per ceiling fan?

Brannon Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information follows: -What is the cost of machining per ceiling fan?

of the following pertains to a just-in-time production system?