Question 1

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

Accepted Answer

A) $182,325 
B) $170,170 
C) $93,552 
D) $109,395 
A) $182,325 
B) $170,170 
C) $93,552 
D) $109,395

Question 2

The activity rate for the batch setup activity cost pool is closest to:

Accepted Answer

A) $48.40 per setup 
B) $38.70 per setup 
C) $74.30 per setup 
D) $193.50 per setup 
A) $48.40 per setup 
B) $38.70 per setup 
C) $74.30 per setup 
D) $193.50 per setup

Question 3

The overhead applied to each unit of Product P0 under activity-based costing is closest to:

Accepted Answer

A) $708.09 per unit 
B) $415.69 per unit 
C) $965.82 per unit 
D) $995.09 per unit 
A) $708.09 per unit 
B) $415.69 per unit 
C) $965.82 per unit 
D) $995.09 per unit

Question 4

Kilby, Inc., manufactures and sells two products: Product H2 and Product C8.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 $28.50 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.Determine the unit product cost of each product under the company's traditional costing method.
b.Determine the unit product cost of each product under the activity-based costing method.

Accepted Answer

a.Predetermined overhead rate = Estimate

Question 5

Whitenton, Inc., manufactures and sells two products: Product X7 and Product Y3.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 is $174.50 for Product X7 and $161.20 for Product Y3.

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 6

Banton, Inc., manufactures and sells two products: Product N0 and Product A8.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 $16.50 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 N0 under activity-based costing is closest to:

Accepted Answer

A) $1,034.37 per unit 
B) $1,383.20 per unit 
C) $842.10 per unit 
D) $1,316.79 per unit 
A) $1,034.37 per unit 
B) $1,383.20 per unit 
C) $842.10 per unit 
D) $1,316.79 per unit

Question 7

Manzano, Inc., manufactures and sells two products: Product F1 and Product G2.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 $18.40 per DLH.The direct materials cost per unit is $248.70 for Product F1 and $266.00 for Product G2.The estimated total manufacturing overhead is $678,146.

The unit product cost of Product G2 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) $2,893.24 per unit 
B) $751.24 per unit 
C) $856.03 per unit 
D) $674.24 per unit 
A) $2,893.24 per unit 
B) $751.24 per unit 
C) $856.03 per unit 
D) $674.24 per unit

Question 8

Busche, Inc., manufactures and sells two products: Product G4 and Product I2.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 $23.70 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.
g.What is the difference between the overhead per unit under the traditional costing method and the activity-based costing system for each of the two products?
h.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

a.Predetermined overhead rate = Estimate

Question 9

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 X0 would be closest to:

Accepted Answer

A) $234.55 per unit 
B) $149.70 per unit 
C) $459.95 per unit 
D) $78.95 per unit 
A) $234.55 per unit 
B) $149.70 per unit 
C) $459.95 per unit 
D) $78.95 per unit

Question 10

The challenge in designing an activity-based costing system is to identify all of the activities that explain the variation in overhead costs.

Accepted Answer

A) True 
 B)False

Question 11

The activity rates in activity-based costing are computed by dividing the direct labor-hours for an activity cost pool by the measure of activity for the activity cost pool.

Accepted Answer

A) True 
 B)False

Question 12

Mattioli, Inc., manufactures and sells two products: Product Z6 and Product Q3.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 $21.00 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:
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 13

The unit product cost of Product I4 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) $421.06 per unit 
B) $336.22 per unit 
C) $558.70 per unit 
D) $509.17 per unit 
A) $421.06 per unit 
B) $336.22 per unit 
C) $558.70 per unit 
D) $509.17 per unit

Question 14

Kiever, Inc., manufactures and sells two products: Product O9 and Product Y1.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's total manufacturing overhead is $1,121,960.If the company allocates all of its overhead based on direct labor-hours, the predetermined overhead rate would be closest to:

Accepted Answer

A) $48.00 per DLH 
B) $120.64 per DLH 
C) $60.08 per DLH 
D) $92.34 per DLH 
A) $48.00 per DLH 
B) $120.64 per DLH 
C) $60.08 per DLH 
D) $92.34 per DLH

Question 15

The unit product cost of Product G2 under activity-based costing is closest to:

Accepted Answer

A) $1,202.79 per unit 
B) $1,217.73 per unit 
C) $808.83 per unit 
D) $1,302.28 per unit 
A) $1,202.79 per unit 
B) $1,217.73 per unit 
C) $808.83 per unit 
D) $1,302.28 per unit

Question 16

An activity measure in activity-based costing expresses how much of an activity is carried out and it is used as the allocation base for assigning overhead costs to products and services.

Accepted Answer

A) True 
 B)False

Question 17

Thingvold, Inc., manufactures and sells two products: Product W8 and Product T0.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 $24.80 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:   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.
g.What is the difference between the overhead per unit under the traditional costing method and the activity-based costing system for each of the two products?
h.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

a.Predetermined overhead rate = Estimate

Question 18

Proby, Inc., manufactures and sells two products: Product A7 and Product T0.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 $16.90 per DLH.The direct materials cost per unit is $243.90 for Product A7 and $167.60 for Product T0.

The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:   Required:
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 19

The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to:

Accepted Answer

A) $65.34 per setup 
B) $53.07 per setup 
C) $72.34 per setup 
D) $15.39 per setup 
A) $65.34 per setup 
B) $53.07 per setup 
C) $72.34 per setup 
D) $15.39 per setup

Question 20

Lindsey Company uses activity-based costing.The company has two products: A and B.The annual production and sales of Product A is 5,000 units and of Product B is 2,000 units.There are three activity cost pools, with estimated total cost and expected activity as follows:    The overhead cost per unit of Product A under activity-based costing is closest to:

Accepted Answer

A) $14.11 
B) $13.77 
C) $7.00 
D) $17.70 
A) $14.11 
B) $13.77 
C) $7.00 
D) $17.70

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

The activity rate for the batch setup activity cost pool is closest to:

The overhead applied to each unit of Product P0 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 X0 would be closest to:

The challenge in designing an activity-based costing system is to identify all of the activities that explain the variation in overhead costs.

The activity rates in activity-based costing are computed by dividing the direct labor-hours for an activity cost pool by the measure of activity for the activity cost pool.

The unit product cost of Product I4 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:

The unit product cost of Product G2 under activity-based costing is closest to:

An activity measure in activity-based costing expresses how much of an activity is carried out and it is used as the allocation base for assigning overhead costs to products and services.

The activity rate for the Machine Setups 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

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Exam 4: Activity-Based Costing

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

The activity rate for the batch setup activity cost pool is closest to:

The overhead applied to each unit of Product P0 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 X0 would be closest to:

The challenge in designing an activity-based costing system is to identify all of the activities that explain the variation in overhead costs.

The activity rates in activity-based costing are computed by dividing the direct labor-hours for an activity cost pool by the measure of activity for the activity cost pool.

The unit product cost of Product I4 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:

The unit product cost of Product G2 under activity-based costing is closest to:

An activity measure in activity-based costing expresses how much of an activity is carried out and it is used as the allocation base for assigning overhead costs to products and services.

The activity rate for the Machine Setups 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