Exam 4: Activity-Based Costing

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 K8 would be closest to:

The overhead applied to each unit of Product J8 under activity-based costing is closest to:

Moistner, Inc., manufactures and sells two products: Product E6 and Product W9.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 overhead assigned to each unit of Product E6 would be closest to:

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

If the materials handling cost is allocated on the basis of direct labor-hours, the total materials handling cost allocated to the wall mirrors is closest to:

The overhead cost per unit of Product S under activity-based costing is closest to:

The overhead applied to each unit of Product Y1 under activity-based costing is closest to:

The overhead applied to each unit of Product G1 under activity-based costing is closest to:

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

An activity cost pool in activity-based costing is a "cost bucket" in which costs related to a particular activity measure are accumulated.

Unit-level activities are performed each time a new departmental unit such as a regional sales office is created.

Aikman, Inc., manufactures and sells two products: Product O6 and Product O7.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 $17.50 per DLH.The direct materials cost per unit for each product is given below: The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The unit product cost of Product O6 is closest to:

Boesenhofer, Inc., manufactures and sells two products: Product N6 and Product N7.The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The activity rate for the Machine Setups activity cost pool 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:

Kretlow Corporation has provided the following data from its activity-based costing accounting system: Required: Compute the activity rates for each of the three cost pools.Show your work!

The total overhead applied to Product T8 under activity-based costing is closest to:

Which of the following statements concerning the unit product cost of Product N0 is true?

The unit product cost of Product N0 under activity-based costing is closest to:

Matamoros, Inc., manufactures and sells two products: Product D7 and Product J3.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 overhead assigned to each unit of Product J3 would be closest to:

Assuming that actual activity turns out to be the same as expected activity, the total amount of overhead cost allocated to Product X would be closest to: