Question 1

Using ABC, what is the overhead cost per unit produced for Job M2?

Accepted Answer

A) $39. 
B) $25. 
C) $20. 
D) $12. 
E) $10. 
A) $39. 
B) $25. 
C) $20. 
D) $12. 
E) $10.

Question 2

The cost of unused capacity can be determined using ABC costing for the purpose of:

Accepted Answer

A) Determining more accurately the ABC costs. 
B) Helping managers plan the short and longer-term use of the operating resources. 
C) Determining product profitability. 
D) Completing an effective activity analysis. 
E) All of the above. 
A) Determining more accurately the ABC costs. 
B) Helping managers plan the short and longer-term use of the operating resources. 
C) Determining product profitability. 
D) Completing an effective activity analysis. 
E) All of the above.

Question 3

Assume the cost per setup remains at $2,000 but that the batch size for product Alpha is changed from 10 to 25 units per batch. Using activity-based and a volume-based overhead costing that uses direct labor-hours to assign overhead, the amount of setup cost applied to each unit of product Alpha would be (rounded to the nearest cent):

Accepted Answer

A) Option A 
B) Option B 
C) Option C 
D) Option D 
E) None of the above answers is correct 
A) Option A 
B) Option B 
C) Option C 
D) Option D 
E) None of the above answers is correct

Question 4

Castenet Company uses a volume-based costing system that applies overhead cost based on direct labor hours at $250 per direct labor hour.
The company is considering adopting an activity-based costing system with the following data:   The two jobs processed in the month of June had the following characteristics:   Required:
1. Compute the unit manufacturing cost of each job under the firm's current volume-based costing system.
2. Compute the unit manufacturing cost of each job under the activity-based costing system.
3. Compare the unit manufacturing cost for Jobs A and B computed in requirements 1 and 2.
(a) Why do the two cost systems differ in their total cost for each job?
(b) Why might these differences be important to the Company?

Accepted Answer

Answer may vary
Feedback: 1. Per unit ma

Question 5

Using activity-based costing, applied miscellaneous factory overhead for the 1,000 laser printers order based on direct labor hours is:

Accepted Answer

A) $7,800. 
B) $10,000. 
C) $10,500. 
D) $150. 
E) $21,600. 
A) $7,800. 
B) $10,000. 
C) $10,500. 
D) $150. 
E) $21,600.

Question 6

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

Accepted Answer

A) $6.13. 
B) $11.86. 
C) $16.28. 
D) $32.36. 
E) $66.73. 
A) $6.13. 
B) $11.86. 
C) $16.28. 
D) $32.36. 
E) $66.73.

Question 7

In performing activity analysis during the design of an activity-based costing system (ABC), the management accountant studies:

Accepted Answer

A) The cost drivers and managers in the plant. 
B) The advice of operation-level managers. 
C) The resources, activities and cost drivers in the operation. 
D) The cost allocation methods applicable to the firm 
E) The implementation problems for an ABC system. 
A) The cost drivers and managers in the plant. 
B) The advice of operation-level managers. 
C) The resources, activities and cost drivers in the operation. 
D) The cost allocation methods applicable to the firm 
E) The implementation problems for an ABC system.

Question 8

What is Nerrod's total customer-sustaining cost applicable to Ninto?

Accepted Answer

A) $400. 
B) $600. 
C) $4,000. 
D) $6,300. 
E) $6,420. 
A) $400. 
B) $600. 
C) $4,000. 
D) $6,300. 
E) $6,420.

Question 9

With a volume-based costing system that applies overhead based on direct labor hours, the setup cost portion of overhead for each unit is (rounded to the nearest cent):

Accepted Answer

A) Option A 
B) Option B 
C) Option C 
D) Option D 
E) Option E 
A) Option A 
B) Option B 
C) Option C 
D) Option D 
E) Option E

Using ABC, what is the overhead cost per unit produced for Job M2?

The cost of unused capacity can be determined using ABC costing for the purpose of:

Using activity-based costing, applied miscellaneous factory overhead for the 1,000 laser printers order based on direct labor hours is:

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

In performing activity analysis during the design of an activity-based costing system (ABC), the management accountant studies:

What is Nerrod's total customer-sustaining cost applicable to Ninto?

With a volume-based costing system that applies overhead based on direct labor hours, the setup cost portion of overhead for each unit is (rounded to the nearest cent):

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

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Exam 5: Activity-Based Costing and Customer Profitability Analysis

Using ABC, what is the overhead cost per unit produced for Job M2?

The cost of unused capacity can be determined using ABC costing for the purpose of:

Using activity-based costing, applied miscellaneous factory overhead for the 1,000 laser printers order based on direct labor hours is:

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

In performing activity analysis during the design of an activity-based costing system (ABC), the management accountant studies:

What is Nerrod's total customer-sustaining cost applicable to Ninto?

With a volume-based costing system that applies overhead based on direct labor hours, the setup cost portion of overhead for each unit is (rounded to the nearest cent):

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