Question 1

What is the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours?

Accepted Answer

A) $9,960. 
B) $30,240. 
C) $43,741. 
D) $44,268. 
E) $109,352. 
A) $9,960. 
B) $30,240. 
C) $43,741. 
D) $44,268. 
E) $109,352. D

Question 2

What is the total manufacturing overhead assigned to the current order for Women's Razors if the firm uses a volume-based plant wide overhead rate based on direct labor hours?

Accepted Answer

A) $112.50. 
B) $150.00. 
C) $187.50. 
D) $9,600.00. 
E) $12,000.00. 
A) $112.50. 
B) $150.00. 
C) $187.50. 
D) $9,600.00. 
E) $12,000.00. D

Question 3

Using activity-based costing, applied engineering and design factory overhead for the Great P model per unit is (rounded to the nearest cent):

Accepted Answer

A) $4.60. 
B) $9.45. 
C) $13.44. 
D) $15.12. 
E) $42.61. 
A) $4.60. 
B) $9.45. 
C) $13.44. 
D) $15.12. 
E) $42.61. D

Question 4

Using activity-based costing, applied miscellaneous overhead for the Great P model per unit is (rounded to the nearest cent):

Accepted Answer

A) $4.60. 
B) $9.45. 
C) $13.44. 
D) $15.12. 
E) $42.61. 
A) $4.60. 
B) $9.45. 
C) $13.44. 
D) $15.12. 
E) $42.61.

Question 5

Which of the following is a description of categorizing related customer costs into cost pools on the basis of cost drivers?

Accepted Answer

A) Customer revenue analysis. 
B) Customer cost analysis. 
C) Customer profitability analysis. 
D) Customer value assessment. 
E) Customer equity analysis. 
A) Customer revenue analysis. 
B) Customer cost analysis. 
C) Customer profitability analysis. 
D) Customer value assessment. 
E) Customer equity analysis.

Question 6

Service and not-for-profit organizations often:

Accepted Answer

A) Have ABC systems which are similar to those of manufacturing firms. 
B) Do not have changeable outputs. 
C) Are unable to benefit from ABC costing. 
D) Do not have ABC systems which are similar to those of manufacturing firms. 
E) None of the above answers is correct. 
A) Have ABC systems which are similar to those of manufacturing firms. 
B) Do not have changeable outputs. 
C) Are unable to benefit from ABC costing. 
D) Do not have ABC systems which are similar to those of manufacturing firms. 
E) None of the above answers is correct.

Question 7

The Time Equation is used in ABC to:

Accepted Answer

A) Track the implementation of the ABC system. 
B) Assess the amount of time required for each activity, in determining the application rate. 
C) Incorporate complexities in the application of ABC. 
D) Plan for the implementation of an ABC system. 
E) None of the above. 
A) Track the implementation of the ABC system. 
B) Assess the amount of time required for each activity, in determining the application rate. 
C) Incorporate complexities in the application of ABC. 
D) Plan for the implementation of an ABC system. 
E) None of the above.

Question 8

Classify each of the following costs as unit-level (U), batch-level (B), product-level (P), or facility-level (F) costs and identify an appropriate example of a possible cost driver for each item:
(1) Parts administration
(2) Production scheduling
(3) Materials handling
(4) Machine operations
(5) Personnel administration and training
(6) Plant security
(7) Machine setups
(8) Engineering changes
(9) Product design
(10) Rent for factory plant

Accepted Answer

Answer may vary
Feedback: (1) Parts admi

Question 9

A volume-based rate is an appropriate overhead application base when:

Accepted Answer

A) Several well-differentiated products are manufactured. 
B) Direct labor costs are large. 
C) Direct material costs are large relative to direct labor costs incurred. 
D) Only one product is manufactured. 
E) Manufacturing is process-based. 
A) Several well-differentiated products are manufactured. 
B) Direct labor costs are large. 
C) Direct material costs are large relative to direct labor costs incurred. 
D) Only one product is manufactured. 
E) Manufacturing is process-based.

Question 10

If Wings uses a volume-based overhead rate based on direct labor hours, the manufacturing overhead for Job #971 is:

Accepted Answer

A) $990. 
B) $1,020. 
C) $1,600. 
D) $3,460. 
E) $6,400. 
A) $990. 
B) $1,020. 
C) $1,600. 
D) $3,460. 
E) $6,400.

Question 11

Which one of the following is not a recommendation for a successful implementation of ABC/M?

Accepted Answer

A) Obtain support of management and personnel. 
B) Complete an activity analysis. 
C) Start with a relatively simple system. 
D) Use ABC/M on a job that will succeed. 
E) All of the above are features of successful ABC/M implementations. 
A) Obtain support of management and personnel. 
B) Complete an activity analysis. 
C) Start with a relatively simple system. 
D) Use ABC/M on a job that will succeed. 
E) All of the above are features of successful ABC/M implementations.

Question 12

The management of activities to improve the value received by the customer and the competitiveness of the organization is:

Accepted Answer

A) Cost driver analysis. 
B) Customer profitability analysis. 
C) Activity-based management. 
D) Performance measurement. 
E) Activity analysis. 
A) Cost driver analysis. 
B) Customer profitability analysis. 
C) Activity-based management. 
D) Performance measurement. 
E) Activity analysis.

Question 13

Cost Pools and Cost Drivers Based on a recent study of its manufacturing operations Johnston Manufacturing Corporation has identified six resource consumption cost drivers. These cost drivers and their budgeted activity levels for the coming year are:   The firm has budgeted the following costs for the year:   With the exception of the factory space cost pool, which uses machine-hours as the activity consumption cost driver, other cost pools have identical resource and activity consumption cost drivers.
Required:
1. Identify the most appropriate activity cost pool for each of the cost items and cost driver for each activity cost pool you identified.
2. Johnston has received a request to quote the price for 4,000 units of a new product. The production will require 100 engineering-hours and 4,250 machine-hours. What is the manufacturing overhead per unit the firm should use in determining the price?

Accepted Answer

Answer may vary
Feedback: 1. @#IMG-DLM& Note: Howe

Question 14

All of the following are low-value-added activities except:

Accepted Answer

A) Processing. 
B) Reworking. 
C) Moving. 
D) Inspection. 
E) Warranty service. 
A) Processing. 
B) Reworking. 
C) Moving. 
D) Inspection. 
E) Warranty service.

Question 15

Using activity-based costing, applied machine overhead for the baseball cleat order is:

Accepted Answer

A) $47,800. 
B) $55,300. 
C) $40,500. 
D) $59,150. 
E) $51,700. 
A) $47,800. 
B) $55,300. 
C) $40,500. 
D) $59,150. 
E) $51,700.

Question 16

If the activity-based cost drivers are used to allocate overhead cost, the total overhead cost of Product X will be:

Accepted Answer

A) $1,500. 
B) $1,560. 
C) $2,000. 
D) $2,400. 
E) $2,560. 
A) $1,500. 
B) $1,560. 
C) $2,000. 
D) $2,400. 
E) $2,560.

Question 17

Using ABC, how much batch-level overhead is assigned to the current order for Women's Razors based on pounds of raw materials?

Accepted Answer

A) $6,000. 
B) $6,880. 
C) $5,332. 
D) $8,175. 
E) $9,374. 
A) $6,000. 
B) $6,880. 
C) $5,332. 
D) $8,175. 
E) $9,374.

Question 18

The controller for Alabama Cooking Oil Co. established the following overhead cost pools and cost drivers:   An order of 800 barrels of cooking oil used:   Required:
(1) What is the overhead rate per machine hour if the number of machine hours is used as a single cost driver under traditional costing system? (Round your intermediate calculation to the nearest cent and final answer to the nearest whole dollar.)
(2) Using volume-based costing, how much overhead is assigned to the order based on machine hours as a single cost driver?
(3) Using ABC costing, how much total overhead is assigned to the order?

Accepted Answer

Answer may vary
Feed

Question 19

Using ABC, how much material handling overhead is assigned to the order?

Accepted Answer

A) $19,200. 
B) $8,000. 
C) $11,108. 
D) $9,960. 
E) $7,272. 
A) $19,200. 
B) $8,000. 
C) $11,108. 
D) $9,960. 
E) $7,272.

Question 20

Using activity-based costing, applied materials handling factory overhead for the baseball cleat order is:

Accepted Answer

A) $338. 
B) $584. 
C) $192. 
D) $353. 
E) $686. 
A) $338. 
B) $584. 
C) $192. 
D) $353. 
E) $686.

What is the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours?

What is the total manufacturing overhead assigned to the current order for Women's Razors if the firm uses a volume-based plant wide overhead rate based on direct labor hours?

Using activity-based costing, applied engineering and design factory overhead for the Great P model per unit is (rounded to the nearest cent):

Using activity-based costing, applied miscellaneous overhead for the Great P model per unit is (rounded to the nearest cent):

Which of the following is a description of categorizing related customer costs into cost pools on the basis of cost drivers?

Service and not-for-profit organizations often:

The Time Equation is used in ABC to:

A volume-based rate is an appropriate overhead application base when:

If Wings uses a volume-based overhead rate based on direct labor hours, the manufacturing overhead for Job #971 is:

Which one of the following is not a recommendation for a successful implementation of ABC/M?

The management of activities to improve the value received by the customer and the competitiveness of the organization is:

All of the following are low-value-added activities except:

Using activity-based costing, applied machine overhead for the baseball cleat order is:

If the activity-based cost drivers are used to allocate overhead cost, the total overhead cost of Product X will be:

Using ABC, how much batch-level overhead is assigned to the current order for Women's Razors based on pounds of raw materials?

Using ABC, how much material handling overhead is assigned to the order?

Using activity-based costing, applied materials handling factory overhead for the baseball cleat order is:

Short-Term Profit Planning: Cost-Volume-Profit CVP Analysis

Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map

Basic Cost Management Concepts

Job Costing

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit Cvp Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

Operational Performance Measurement: Further Analysis of Productivity and Sales

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

Management Compensation, Business Analysis, and Business Valuation

Filters

Exam 5: Activity-Based Costing and Customer Profitability Analysis

What is the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours?

What is the total manufacturing overhead assigned to the current order for Women's Razors if the firm uses a volume-based plant wide overhead rate based on direct labor hours?

Using activity-based costing, applied engineering and design factory overhead for the Great P model per unit is (rounded to the nearest cent):

Using activity-based costing, applied miscellaneous overhead for the Great P model per unit is (rounded to the nearest cent):

Which of the following is a description of categorizing related customer costs into cost pools on the basis of cost drivers?

Service and not-for-profit organizations often:

The Time Equation is used in ABC to:

A volume-based rate is an appropriate overhead application base when:

If Wings uses a volume-based overhead rate based on direct labor hours, the manufacturing overhead for Job #971 is:

Which one of the following is not a recommendation for a successful implementation of ABC/M?

The management of activities to improve the value received by the customer and the competitiveness of the organization is:

All of the following are low-value-added activities except:

Using activity-based costing, applied machine overhead for the baseball cleat order is:

If the activity-based cost drivers are used to allocate overhead cost, the total overhead cost of Product X will be:

Using ABC, how much batch-level overhead is assigned to the current order for Women's Razors based on pounds of raw materials?

Using ABC, how much material handling overhead is assigned to the order?

Using activity-based costing, applied materials handling factory overhead for the baseball cleat order is:

Short-Term Profit Planning: Cost-Volume-Profit CVP Analysis

Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map

Basic Cost Management Concepts

Job Costing

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit Cvp Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

Operational Performance Measurement: Further Analysis of Productivity and Sales

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

Management Compensation, Business Analysis, and Business Valuation

Filters