Question 1

Assembling a product is an example of a:

Accepted Answer

A) Unit-level activity. 
B) Batch-level activity. 
C) Product-level activity. 
D) Facility-level activity. 
A) Unit-level activity. 
B) Batch-level activity. 
C) Product-level activity. 
D) Facility-level activity.

Question 2

If the materials handling cost is allocated on the basis of material moves, the total materials handling cost allocated to the specialty windows is closest to:

Accepted Answer

A) $1,021 
B) $3,674 
C) $3,062 
D) $1,980 
A) $1,021 
B) $3,674 
C) $3,062 
D) $1,980

Question 3

Which of the following statements concerning the unit product cost of Product X4 is true?

Accepted Answer

A) The unit product cost of Product X4 under traditional costing is less than its unit product cost under activity-based costing by $189.12. 
B) The unit product cost of Product X4 under traditional costing is less than its unit product cost under activity-based costing by $2.79. 
C) The unit product cost of Product X4 under traditional costing is greater than its unit product under activity-based costing by $189.12. 
D) The unit product cost of Product X4 under traditional costing is greater than its unit product under activity-based costing by $2.79. 
A) The unit product cost of Product X4 under traditional costing is less than its unit product cost under activity-based costing by $189.12. 
B) The unit product cost of Product X4 under traditional costing is less than its unit product cost under activity-based costing by $2.79. 
C) The unit product cost of Product X4 under traditional costing is greater than its unit product under activity-based costing by $189.12. 
D) The unit product cost of Product X4 under traditional costing is greater than its unit product under activity-based costing by $2.79.

Question 4

Skiver, Inc., manufactures and sells two products: Product K5 and Product J2.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 has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:   The total overhead applied to Product K5 under activity-based costing is closest to:

Accepted Answer

A) $613,970 
B) $533,088 
C) $349,960 
D) $631,848 
A) $613,970 
B) $533,088 
C) $349,960 
D) $631,848

Question 5

The predetermined overhead rate under the traditional costing system is closest to:

Accepted Answer

A) $11.71 per DLH 
B) $38.69 per DLH 
C) $171.89 per DLH 
D) $23.87 per DLH 
A) $11.71 per DLH 
B) $38.69 per DLH 
C) $171.89 per DLH 
D) $23.87 per DLH

Question 6

The overhead applied to each unit of Product W2 under activity-based costing is closest to:

Accepted Answer

A) $2,286.58 per unit 
B) $1,126.79 per unit 
C) $995.09 per unit 
D) $1,825.00 per unit 
A) $2,286.58 per unit 
B) $1,126.79 per unit 
C) $995.09 per unit 
D) $1,825.00 per unit

Question 7

The total overhead applied to Product E1 under activity-based costing is closest to:

Accepted Answer

A) $770,160 
B) $472,008 
C) $644,128 
D) $364,736 
A) $770,160 
B) $472,008 
C) $644,128 
D) $364,736

Question 8

Archie Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.   Last year, Product X26X required 18 batches, 4 customer orders, and 103 assembly hours.
Required:
How much overhead cost would be assigned to Product X26X using the company's activity-based costing system? Show your work!

Accepted Answer

The answer of Archie Corporation uses the following activity rates...

Question 9

Bera Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:   Data for one of the company's products follow:   How much overhead cost would be assigned to Product Q79P using the activity-based costing system?

Accepted Answer

A) $7,119.92 
B) $43,659.54 
C) $4,770.99 
D) $125.82 
A) $7,119.92 
B) $43,659.54 
C) $4,770.99 
D) $125.82

Question 10

Mahaley, Inc., manufactures and sells two products: Product Q9 and Product F0.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 $21.80 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:   The unit product cost of Product F0 under activity-based costing is closest to:

Accepted Answer

A) $720.13 per unit 
B) $674.82 per unit 
C) $449.51 per unit 
D) $656.88 per unit 
A) $720.13 per unit 
B) $674.82 per unit 
C) $449.51 per unit 
D) $656.88 per unit

Question 11

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

Accepted Answer

A) $118.82 per DLH 
B) $368.75 per DLH 
C) $178.23 per DLH 
D) $41.92 per DLH 
A) $118.82 per DLH 
B) $368.75 per DLH 
C) $178.23 per DLH 
D) $41.92 per DLH

Question 12

The activity rate for Activity 2 is closest to:

Accepted Answer

A) $11.76 
B) $8.69 
C) $29.27 
D) $33.31 
A) $11.76 
B) $8.69 
C) $29.27 
D) $33.31

Question 13

Data concerning three of Kilmon Corporation's activity cost pools appear below:   Required:
Compute the activity rates for each of the three cost pools.Show your work!

Accepted Answer

The answer of Data concerning three of Kilmon Corporation's activity...

Question 14

Roca, Inc., manufactures and sells two products: Product M6 and Product X7.The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:    The total overhead applied to Product X7 under activity-based costing is closest to:

Accepted Answer

A) $360,294 
B) $249,264 
C) $443,424 
D) $369,879 
A) $360,294 
B) $249,264 
C) $443,424 
D) $369,879

Question 15

Macfarlane, Inc., manufactures and sells two products: Product F4 and Product A0.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 $27.60 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:
Determine the unit product cost of each product under the activity-based costing method.

Accepted Answer

Computation of activity rates:

Question 16

Steuart, Inc., manufactures and sells two products: Product T4 and Product H1.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 $26.00 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:
What is the difference between the unit product costs under the traditional costing method and the activity-based costing system for each of the two products?

Accepted Answer

Predetermined overhead rate = Estimated

Question 17

Which of the following statements concerning the unit product cost of Product A8 is true?

Accepted Answer

A) The unit product cost of Product A8 under traditional costing is greater than its unit product under activity-based costing by $331.64. 
B) The unit product cost of Product A8 under traditional costing is less than its unit product cost under activity-based costing by $331.64. 
C) The unit product cost of Product A8 under traditional costing is less than its unit product cost under activity-based costing by $1,540.33. 
D) The unit product cost of Product A8 under traditional costing is greater than its unit product under activity-based costing by $1,540.33. 
A) The unit product cost of Product A8 under traditional costing is greater than its unit product under activity-based costing by $331.64. 
B) The unit product cost of Product A8 under traditional costing is less than its unit product cost under activity-based costing by $331.64. 
C) The unit product cost of Product A8 under traditional costing is less than its unit product cost under activity-based costing by $1,540.33. 
D) The unit product cost of Product A8 under traditional costing is greater than its unit product under activity-based costing by $1,540.33.

Question 18

The overhead applied to each unit of Product W8 under activity-based costing is closest to:

Accepted Answer

A) $3,884.00 per unit 
B) $1,167.10 per unit 
C) $970.92 per unit 
D) $4,344.05 per unit 
A) $3,884.00 per unit 
B) $1,167.10 per unit 
C) $970.92 per unit 
D) $4,344.05 per unit

Question 19

Purchase order processing is an example of a:

Accepted Answer

A) Unit-level activity. 
B) Batch-level activity. 
C) Product-level activity. 
D) Facility-level activity. 
A) Unit-level activity. 
B) Batch-level activity. 
C) Product-level activity. 
D) Facility-level activity.

Question 20

The unit product cost of Product J8 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) $752.61 per unit 
B) $1,089.21 per unit 
C) $1,301.97 per unit 
D) $860.16 per unit 
A) $752.61 per unit 
B) $1,089.21 per unit 
C) $1,301.97 per unit 
D) $860.16 per unit

Assembling a product is an example of a:

If the materials handling cost is allocated on the basis of material moves, the total materials handling cost allocated to the specialty windows is closest to:

Which of the following statements concerning the unit product cost of Product X4 is true?

The predetermined overhead rate under the traditional costing system is closest to:

The overhead applied to each unit of Product W2 under activity-based costing is closest to:

The total overhead applied to Product E1 under activity-based costing is closest to:

Bera Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Data for one of the company's products follow: How much overhead cost would be assigned to Product Q79P using the activity-based costing system?

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

The activity rate for Activity 2 is closest to:

Data concerning three of Kilmon Corporation's activity cost pools appear below: Required: Compute the activity rates for each of the three cost pools.Show your work!

Roca, Inc., manufactures and sells two products: Product M6 and Product X7.The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The total overhead applied to Product X7 under activity-based costing is closest to:

Which of the following statements concerning the unit product cost of Product A8 is true?

The overhead applied to each unit of Product W8 under activity-based costing is closest to:

Purchase order processing is an example of a:

The unit product cost of Product J8 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours 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

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Exam 4: Activity-Based Costing

Assembling a product is an example of a:

If the materials handling cost is allocated on the basis of material moves, the total materials handling cost allocated to the specialty windows is closest to:

Which of the following statements concerning the unit product cost of Product X4 is true?

The predetermined overhead rate under the traditional costing system is closest to:

The overhead applied to each unit of Product W2 under activity-based costing is closest to:

The total overhead applied to Product E1 under activity-based costing is closest to:

Bera Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Data for one of the company's products follow: How much overhead cost would be assigned to Product Q79P using the activity-based costing system?

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

The activity rate for Activity 2 is closest to:

Data concerning three of Kilmon Corporation's activity cost pools appear below: Required: Compute the activity rates for each of the three cost pools.Show your work!

Roca, Inc., manufactures and sells two products: Product M6 and Product X7.The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The total overhead applied to Product X7 under activity-based costing is closest to:

Which of the following statements concerning the unit product cost of Product A8 is true?

The overhead applied to each unit of Product W8 under activity-based costing is closest to:

Purchase order processing is an example of a:

The unit product cost of Product J8 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours 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