Question 1

The activity rate under the activity-based costing system for Activity 3 is closest to:

Accepted Answer

A) $33.33 
B) $30.00 
C) $29.32 
D) $41.53 
A) $33.33 
B) $30.00 
C) $29.32 
D) $41.53

Question 2

In activity-based costing, unit product costs computed for external financial reports include manufacturing overhead costs that are computed by multiplying activity rates by the activities required to produce a product.

Accepted Answer

A) True 
 B)False

Question 3

Departmental overhead rates applied on the basis of a single activity measure will eliminate any distortions in unit costs due to product diversity.

Accepted Answer

A) True 
 B)False

Question 4

Gatten, Inc., manufactures and sells two products: Product I9 and Product D2.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 $19.10 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:   Required:
In all computations involving dollars in the following requirements, round off your answer to the nearest whole cent.
a.The company currently uses a traditional costing method in which overhead is applied to products based solely on direct labor-hours.Compute the company's predetermined overhead rate under this costing method.
b.How much overhead would be applied to each product under the company's traditional costing method?
c.Determine the unit product cost of each product under the company's traditional costing method.
d.Compute the activity rates under the activity-based costing system.
e.Determine how much overhead would be assigned to each product under the activity-based costing system.
f.Determine the unit product cost of each product under the activity-based costing method.

Accepted Answer

a.Predetermined overhead rate = Estimate

Question 5

The overhead applied to each unit of Product P9 under activity-based costing is closest to:

Accepted Answer

A) $2,205.42 per unit 
B) $2,082.89 per unit 
C) $1,206.08 per unit 
D) $1,642.04 per unit 
A) $2,205.42 per unit 
B) $2,082.89 per unit 
C) $1,206.08 per unit 
D) $1,642.04 per unit

Question 6

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

Accepted Answer

A) $62.60 per MH 
B) $33.61 per MH 
C) $167.94 per MH 
D) $87.22 per MH 
A) $62.60 per MH 
B) $33.61 per MH 
C) $167.94 per MH 
D) $87.22 per MH

Question 7

If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product W5 would be closest to:

Accepted Answer

A) $274.64 per unit 
B) $626.24 per unit 
C) $184.24 per unit 
D) $123.12 per unit 
A) $274.64 per unit 
B) $626.24 per unit 
C) $184.24 per unit 
D) $123.12 per unit

Question 8

The overhead applied to each unit of Product W5 under activity-based costing is closest to:

Accepted Answer

A) $718.73 per unit 
B) $626.24 per unit 
C) $521.89 per unit 
D) $480.62 per unit 
A) $718.73 per unit 
B) $626.24 per unit 
C) $521.89 per unit 
D) $480.62 per unit

Question 9

Lefave, Inc., manufactures and sells two products: Product Q1 and Product D5.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below:   The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:   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) $26.29 per DLH 
B) $70.04 per DLH 
C) $69.87 per DLH 
D) $27.31 per DLH 
A) $26.29 per DLH 
B) $70.04 per DLH 
C) $69.87 per DLH 
D) $27.31 per DLH

Question 10

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) $32.59 per DLH 
B) $44.54 per DLH 
C) $69.99 per DLH 
D) $93.63 per DLH 
A) $32.59 per DLH 
B) $44.54 per DLH 
C) $69.99 per DLH 
D) $93.63 per DLH

The activity rate under the activity-based costing system for Activity 3 is closest to:

In activity-based costing, unit product costs computed for external financial reports include manufacturing overhead costs that are computed by multiplying activity rates by the activities required to produce a product.

Departmental overhead rates applied on the basis of a single activity measure will eliminate any distortions in unit costs due to product diversity.

The overhead applied to each unit of Product P9 under activity-based costing is closest to:

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

If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product W5 would be closest to:

The overhead applied to each unit of Product W5 under activity-based costing is closest to:

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:

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 activity rate under the activity-based costing system for Activity 3 is closest to:

In activity-based costing, unit product costs computed for external financial reports include manufacturing overhead costs that are computed by multiplying activity rates by the activities required to produce a product.

Departmental overhead rates applied on the basis of a single activity measure will eliminate any distortions in unit costs due to product diversity.

The overhead applied to each unit of Product P9 under activity-based costing is closest to:

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

If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product W5 would be closest to:

The overhead applied to each unit of Product W5 under activity-based costing is closest to:

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:

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