Question 1

The unit product cost of Product B7 under activity-based costing is closest to:

Accepted Answer

A) $1,066.17 per unit 
B) $692.82 per unit 
C) $974.69 per unit 
D) $890.20 per unit 
A) $1,066.17 per unit 
B) $692.82 per unit 
C) $974.69 per unit 
D) $890.20 per unit

Question 2

The total overhead applied to Product P4 under activity-based costing is closest to:

Accepted Answer

A) $736,290 
B) $367,281 
C) $491,491 
D) $758,601 
A) $736,290 
B) $367,281 
C) $491,491 
D) $758,601

Question 3

The activity rate for the Production Orders activity cost pool under activity-based costing is closest to:

Accepted Answer

A) $63.40 per order 
B) $68.74 per order 
C) $88.17 per order 
D) $65.69 per order 
A) $63.40 per order 
B) $68.74 per order 
C) $88.17 per order 
D) $65.69 per order

Question 4

In activity-based costing, departmental overhead rates are used to apply overhead to products.

Accepted Answer

A) True 
 B)False

Question 5

The overhead applied to each unit of Product Z6 under activity-based costing is closest to:

Accepted Answer

A) $673.87 per unit 
B) $561.90 per unit 
C) $789.90 per unit 
D) $449.52 per unit 
A) $673.87 per unit 
B) $561.90 per unit 
C) $789.90 per unit 
D) $449.52 per unit

Question 6

The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:

Accepted Answer

A) $179.36 per DLH 
B) $1,981.16 per DLH 
C) $134.52 per DLH 
D) $45.78 per DLH 
A) $179.36 per DLH 
B) $1,981.16 per DLH 
C) $134.52 per DLH 
D) $45.78 per DLH

Question 7

Which of the following statements concerning the unit product cost of Product I5 is true?

Accepted Answer

A) The unit product cost of Product I5 under traditional costing is greater than its unit product under activity-based costing by $344.02. 
B) The unit product cost of Product I5 under traditional costing is less than its unit product cost under activity-based costing by $494.70. 
C) The unit product cost of Product I5 under traditional costing is greater than its unit product under activity-based costing by $494.70. 
D) The unit product cost of Product I5 under traditional costing is less than its unit product cost under activity-based costing by $344.02. 
A) The unit product cost of Product I5 under traditional costing is greater than its unit product under activity-based costing by $344.02. 
B) The unit product cost of Product I5 under traditional costing is less than its unit product cost under activity-based costing by $494.70. 
C) The unit product cost of Product I5 under traditional costing is greater than its unit product under activity-based costing by $494.70. 
D) The unit product cost of Product I5 under traditional costing is less than its unit product cost under activity-based costing by $344.02.

Question 8

A department's overhead costs are generally caused by a variety of factors including the range of products processed in the department, the number of batch set-ups that are required, and the complexity of the products.

Accepted Answer

A) True 
 B)False

Question 9

In activity-based costing, a separate activity rate (i.e., predetermined overhead rate)is computed for each activity cost pool by dividing the estimated overhead cost in the activity cost pool by the total expected activity for the activity cost pool.

Accepted Answer

A) True 
 B)False

Question 10

The unit product cost of Product T6 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:

Accepted Answer

A) $1,332.57 per unit 
B) $1,703.82 per unit 
C) $1,282.35 per unit 
D) $925.50 per unit 
A) $1,332.57 per unit 
B) $1,703.82 per unit 
C) $1,282.35 per unit 
D) $925.50 per unit

Question 11

Facility-level costs cannot be traced on a cause-and-effect basis to individual products.

Accepted Answer

A) True 
 B)False

Question 12

Lillich, Inc., manufactures and sells two products: Product U6 and Product R5.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below:   The direct labor rate is $27.10 per DLH.The direct materials cost per unit for each product is given below:   The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:   Which of the following statements concerning the unit product cost of Product U6 is true?

Accepted Answer

A) The unit product cost of Product U6 under traditional costing is greater than its unit product under activity-based costing by $389.58. 
B) The unit product cost of Product U6 under traditional costing is less than its unit product cost under activity-based costing by $389.58. 
C) The unit product cost of Product U6 under traditional costing is greater than its unit product under activity-based costing by $1.33. 
D) The unit product cost of Product U6 under traditional costing is less than its unit product cost under activity-based costing by $1.33. 
A) The unit product cost of Product U6 under traditional costing is greater than its unit product under activity-based costing by $389.58. 
B) The unit product cost of Product U6 under traditional costing is less than its unit product cost under activity-based costing by $389.58. 
C) The unit product cost of Product U6 under traditional costing is greater than its unit product under activity-based costing by $1.33. 
D) The unit product cost of Product U6 under traditional costing is less than its unit product cost under activity-based costing by $1.33.

Question 13

Flyer Corporation manufactures two products, Product A and Product B.Product B is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product A.Product B is the more complex of the two products, requiring three hours of direct labor time per unit to manufacture compared to one and one-half hours of direct labor time for Product A.Product B is produced on an automated production line.
Overhead is currently assigned to the products on the basis of direct-labor-hours.The company estimated it would incur $396,000 in manufacturing overhead costs and produce 5,500 units of Product B and 22,000 units of Product A during the current year.Unit costs for materials and direct labor are:   Required:
a.Compute the predetermined overhead rate under the current method of allocation and determine the unit product cost of each product for the current year.
b.The company's overhead costs can be attributed to four major activities.These activities and the amount of overhead cost attributable to each for the current year are given below:   Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year.

Accepted Answer

a.The company expects to work 45,000 dir

Question 14

If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to:

Accepted Answer

A) $45.78 per DLH 
B) $76.87 per DLH 
C) $86.68 per DLH 
D) $80.07 per DLH 
A) $45.78 per DLH 
B) $76.87 per DLH 
C) $86.68 per DLH 
D) $80.07 per DLH

Question 15

Eliezrie, Inc., manufactures and sells two products: Product G8 and Product O0.Data concerning the expected production of each product and the expected total direct labor-hours  (DLHs)required to produce that output appear below:   The direct labor rate is $22.10 per DLH.The direct materials cost per unit for each product is given below:   The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:   Which of the following statements concerning the unit product cost of Product G8 is true?

Accepted Answer

A) The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing by $227.80. 
B) The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing by $347.88. 
C) The unit product cost of Product G8 under traditional costing is greater than its unit product under activity-based costing by $347.88. 
D) The unit product cost of Product G8 under traditional costing is greater than its unit product under activity-based costing by $227.80. 
A) The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing by $227.80. 
B) The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing by $347.88. 
C) The unit product cost of Product G8 under traditional costing is greater than its unit product under activity-based costing by $347.88. 
D) The unit product cost of Product G8 under traditional costing is greater than its unit product under activity-based costing by $227.80.

Question 16

Product-level activities relate to specific products and typically must be carried out whenever a batch is run or a unit of the product is made.

Accepted Answer

A) True 
 B)False

Question 17

Ravelo Corporation has provided the following data from its activity-based costing system:   Data concerning the company's product L19B appear below:   According to the activity-based costing system, the unit product cost of product L19B is closest to:

Accepted Answer

A) $48.19 per unit 
B) $82.31 per unit 
C) $85.56 per unit 
D) $77.53 per unit 
A) $48.19 per unit 
B) $82.31 per unit 
C) $85.56 per unit 
D) $77.53 per unit

Question 18

Which of the following statements concerning the unit product cost of Product I4 is true?

Accepted Answer

A) The unit product cost of Product I4 under traditional costing is greater than its unit product under activity-based costing by $20.40. 
B) The unit product cost of Product I4 under traditional costing is greater than its unit product under activity-based costing by $257.16. 
C) The unit product cost of Product I4 under traditional costing is less than its unit product cost under activity-based costing by $257.16. 
D) The unit product cost of Product I4 under traditional costing is less than its unit product cost under activity-based costing by $20.40. 
A) The unit product cost of Product I4 under traditional costing is greater than its unit product under activity-based costing by $20.40. 
B) The unit product cost of Product I4 under traditional costing is greater than its unit product under activity-based costing by $257.16. 
C) The unit product cost of Product I4 under traditional costing is less than its unit product cost under activity-based costing by $257.16. 
D) The unit product cost of Product I4 under traditional costing is less than its unit product cost under activity-based costing by $20.40.

Question 19

The total overhead applied to Product A7 under activity-based costing is closest to:

Accepted Answer

A) $373,632 
B) $115,524 
C) $241,548 
D) $413,664 
A) $373,632 
B) $115,524 
C) $241,548 
D) $413,664

Question 20

The activity rate for the General Factory activity cost pool under activity-based costing is closest to:

Accepted Answer

A) $64.04 per MH 
B) $23.50 per MH 
C) $28.55 per MH 
D) $71.49 per MH 
A) $64.04 per MH 
B) $23.50 per MH 
C) $28.55 per MH 
D) $71.49 per MH

The unit product cost of Product B7 under activity-based costing is closest to:

The total overhead applied to Product P4 under activity-based costing is closest to:

The activity rate for the Production Orders activity cost pool under activity-based costing is closest to:

In activity-based costing, departmental overhead rates are used to apply overhead to products.

The overhead applied to each unit of Product Z6 under activity-based costing is closest to:

The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:

Which of the following statements concerning the unit product cost of Product I5 is true?

A department's overhead costs are generally caused by a variety of factors including the range of products processed in the department, the number of batch set-ups that are required, and the complexity of the products.

In activity-based costing, a separate activity rate (i.e., predetermined overhead rate)is computed for each activity cost pool by dividing the estimated overhead cost in the activity cost pool by the total expected activity for the activity cost pool.

The unit product cost of Product T6 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:

Facility-level costs cannot be traced on a cause-and-effect basis to individual products.

If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to:

Product-level activities relate to specific products and typically must be carried out whenever a batch is run or a unit of the product is made.

Ravelo Corporation has provided the following data from its activity-based costing system: Data concerning the company's product L19B appear below: According to the activity-based costing system, the unit product cost of product L19B is closest to:

Which of the following statements concerning the unit product cost of Product I4 is true?

The total overhead applied to Product A7 under activity-based costing is closest to:

The activity rate for the General Factory activity cost pool under activity-based costing is closest to:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Flexible Budgets Standard Costs and Variance Analysis

Statement of Cash Flows

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

Filters

Exam 4: Activity-Based Costing

The unit product cost of Product B7 under activity-based costing is closest to:

The total overhead applied to Product P4 under activity-based costing is closest to:

The activity rate for the Production Orders activity cost pool under activity-based costing is closest to:

In activity-based costing, departmental overhead rates are used to apply overhead to products.

The overhead applied to each unit of Product Z6 under activity-based costing is closest to:

The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:

Which of the following statements concerning the unit product cost of Product I5 is true?

A department's overhead costs are generally caused by a variety of factors including the range of products processed in the department, the number of batch set-ups that are required, and the complexity of the products.

In activity-based costing, a separate activity rate (i.e., predetermined overhead rate)is computed for each activity cost pool by dividing the estimated overhead cost in the activity cost pool by the total expected activity for the activity cost pool.

The unit product cost of Product T6 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:

Facility-level costs cannot be traced on a cause-and-effect basis to individual products.

If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to:

Product-level activities relate to specific products and typically must be carried out whenever a batch is run or a unit of the product is made.

Ravelo Corporation has provided the following data from its activity-based costing system: Data concerning the company's product L19B appear below: According to the activity-based costing system, the unit product cost of product L19B is closest to:

Which of the following statements concerning the unit product cost of Product I4 is true?

The total overhead applied to Product A7 under activity-based costing is closest to:

The activity rate for the General Factory activity cost pool under activity-based costing is closest to:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Flexible Budgets Standard Costs and Variance Analysis

Statement of Cash Flows

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

Filters