Exam 5: Activity-Based Costing and Customer Profitability Analysis

Nerrod Company sells its products at $500 per unit, net 30. The firm's gross margin ratio is 40 percent. The firm has estimated the following operating costs:What is Nerrod's total customer-sustaining cost applicable to Ninto?

Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead:If Wings uses a volume-based overhead rate based on direct labor hours, the manufacturing overhead for Job #971 is:

Which of the following would not be considered a facility-level activity?

Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $432,000 payroll for 4,800 direct labor-hours. Listed below is cost driver information used in the product-costing system:Using ABC, how much machine setup overhead is assigned to the order?

The cost of sales visits is a:

Time-driven ABC provides a direct way to measure:

National Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders.Using the firm's volume- based costing, applied factory overhead per unit for the Great P model is (rounded to the nearest cent):

Which of the following activity cost pools would most likely be allocated based on the number of production runs?

Diamond Cleats Co. manufactures cleats for baseball shoes. It has outlined the following overhead cost drivers:Using activity-based costing, applied quality control factory overhead for the baseball cleat order is: