Question 1

The overhead cost per unit of Product B is closest to:

Accepted Answer

A) $25.90 
B) $11.49 
C) $34.73 
D) $48.09 
A) $25.90 
B) $11.49 
C) $34.73 
D) $48.09

Question 2

Activity rates from Mcelderry Corporation's activity-based costing system are listed below.The company uses the activity rates to assign overhead costs to products:   Last year, Product Q06J involved 10 customer orders, 580 assembly hours, and 12 batches.How much overhead cost would be assigned to Product Q06J using the activity-based costing system?

Accepted Answer

A) $71.01 
B) $219.12 
C) $2,388.22 
D) $42,748.02 
A) $71.01 
B) $219.12 
C) $2,388.22 
D) $42,748.02

Question 3

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

Accepted Answer

A) $141.07 per DLH 
B) $235.12 per DLH 
C) $33.06 per DLH 
D) $697.35 per DLH 
A) $141.07 per DLH 
B) $235.12 per DLH 
C) $33.06 per DLH 
D) $697.35 per DLH

Question 4

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) $38.80 per DLH 
B) $36.95 per DLH 
C) $97.10 per DLH 
D) $107.88 per DLH 
A) $38.80 per DLH 
B) $36.95 per DLH 
C) $97.10 per DLH 
D) $107.88 per DLH

Question 5

Seldomridge, Inc., manufactures and sells two products: Product I5 and Product U0.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 $24.40 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 U0 under activity-based costing is closest to:

Accepted Answer

A) $1,672.35 per unit 
B) $2,504.73 per unit 
C) $2,042.50 per unit 
D) $2,885.25 per unit 
A) $1,672.35 per unit 
B) $2,504.73 per unit 
C) $2,042.50 per unit 
D) $2,885.25 per unit

Question 6

When a company changes from a traditional costing system to an activity-based costing system, the unit product costs of low-volume products typically increase more than the unit product costs of high-volume products decrease.

Accepted Answer

A) True 
 B)False

Question 7

Weiskopf, Inc., manufactures and sells two products: Product E6 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 direct labor rate is $18.10 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 J2 is true?

Accepted Answer

A) The unit product cost of Product J2 under traditional costing is less than its unit product cost under activity-based costing by $101.07. 
B) The unit product cost of Product J2 under traditional costing is greater than its unit product under activity-based costing by $101.07. 
C) The unit product cost of Product J2 under traditional costing is greater than its unit product under activity-based costing by $42.54. 
D) The unit product cost of Product J2 under traditional costing is less than its unit product cost under activity-based costing by $42.54. 
A) The unit product cost of Product J2 under traditional costing is less than its unit product cost under activity-based costing by $101.07. 
B) The unit product cost of Product J2 under traditional costing is greater than its unit product under activity-based costing by $101.07. 
C) The unit product cost of Product J2 under traditional costing is greater than its unit product under activity-based costing by $42.54. 
D) The unit product cost of Product J2 under traditional costing is less than its unit product cost under activity-based costing by $42.54.

Question 8

Upwall, Inc., manufactures and sells two products: Product S0 and Product F7.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 $15.60 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 9

Desjarlais Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.   Data concerning two products appear below:   Required:
a.How much overhead cost would be assigned to Product S96U using the company's activity-based costing system? Show your work!
b.How much overhead cost would be assigned to Product Q06F using the company's activity-based costing system? Show your work!

Accepted Answer

a.Product S96U @#IMG-DLM&_TB26

Question 10

Rondeau, Inc., manufactures and sells two products: Product V9 and Product M6.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 $25.10 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:
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 11

Privott, Inc., manufactures and sells two products: Product Z9 and Product N0.The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:   The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:

Accepted Answer

A) $91.49 per DLH 
B) $934.30 per DLH 
C) $114.37 per DLH 
D) $34.47 per DLH 
A) $91.49 per DLH 
B) $934.30 per DLH 
C) $114.37 per DLH 
D) $34.47 per DLH

Question 12

In activity-based costing, unit product costs computed for external financial reports include:

Accepted Answer

A) direct materials and manufacturing overhead. 
B) direct labor and manufacturing overhead. 
C) direct materials, direct labor, and manufacturing overhead. 
D) direct materials and direct labor. 
A) direct materials and manufacturing overhead. 
B) direct labor and manufacturing overhead. 
C) direct materials, direct labor, and manufacturing overhead. 
D) direct materials and direct labor.

Question 13

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

Accepted Answer

A) $43.15 per DLH 
B) $635.33 per DLH 
C) $57.77 per DLH 
D) $80.88 per DLH 
A) $43.15 per DLH 
B) $635.33 per DLH 
C) $57.77 per DLH 
D) $80.88 per DLH

Question 14

The unit product cost of Product A4 under activity-based costing is closest to:

Accepted Answer

A) $1,168.26 per unit 
B) $1,381.41 per unit 
C) $1,307.76 per unit 
D) $784.69 per unit 
A) $1,168.26 per unit 
B) $1,381.41 per unit 
C) $1,307.76 per unit 
D) $784.69 per unit

Question 15

The overhead applied to each unit of Product H9 under activity-based costing is closest to:

Accepted Answer

A) $1,139.60 per unit 
B) $1,078.98 per unit 
C) $610.09 per unit 
D) $1,025.67 per unit 
A) $1,139.60 per unit 
B) $1,078.98 per unit 
C) $610.09 per unit 
D) $1,025.67 per unit

Question 16

Vescovi, Inc., manufactures and sells two products: Product N4 and Product W6.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 $16.20 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

The overhead applied to each unit of Product X2 under activity-based costing is closest to:

Accepted Answer

A) $2,082.89 per unit 
B) $2,186.02 per unit 
C) $2,964.58 per unit 
D) $1,837.85 per unit 
A) $2,082.89 per unit 
B) $2,186.02 per unit 
C) $2,964.58 per unit 
D) $1,837.85 per unit

Question 18

Parts administration 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 19

Graise, Inc., manufactures and sells two products: Product C2 and Product M5.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 $22.50 per DLH.The direct materials cost per unit is $124.20 for Product C2 and $144.00 for Product M5.

The company has 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.Compute the activity rates under the activity-based costing system.
b.Determine how much overhead would be assigned to each product under the activity-based costing system.
c.Determine the unit product cost of each product under the activity-based costing method.

Accepted Answer

a.Computation of activity rates: @#IMG-DLM&_TB2627

Question 20

The unit product cost of Product Q9 under activity-based costing is closest to:

Accepted Answer

A) $628.67 per unit 
B) $444.68 per unit 
C) $641.50 per unit 
D) $570.33 per unit 
A) $628.67 per unit 
B) $444.68 per unit 
C) $641.50 per unit 
D) $570.33 per unit

The overhead cost per unit of Product B is closest to:

The activity rate for the Labor-Related 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 predetermined overhead rate would be closest to:

When a company changes from a traditional costing system to an activity-based costing system, the unit product costs of low-volume products typically increase more than the unit product costs of high-volume products decrease.

In activity-based costing, unit product costs computed for external financial reports include:

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

The unit product cost of Product A4 under activity-based costing is closest to:

The overhead applied to each unit of Product H9 under activity-based costing is closest to:

The overhead applied to each unit of Product X2 under activity-based costing is closest to:

Parts administration is an example of a:

The unit product cost of Product Q9 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

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Exam 4: Activity-Based Costing

The overhead cost per unit of Product B is closest to:

The activity rate for the Labor-Related 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 predetermined overhead rate would be closest to:

When a company changes from a traditional costing system to an activity-based costing system, the unit product costs of low-volume products typically increase more than the unit product costs of high-volume products decrease.

In activity-based costing, unit product costs computed for external financial reports include:

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

The unit product cost of Product A4 under activity-based costing is closest to:

The overhead applied to each unit of Product H9 under activity-based costing is closest to:

The overhead applied to each unit of Product X2 under activity-based costing is closest to:

Parts administration is an example of a:

The unit product cost of Product Q9 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