Question 1

The use of departmental overhead rates will generally result in the use of a

Accepted Answer

A) single cost allocation base. 
B) separate cost allocation base for each department in the factory. 
C) single overhead cost pool for the factory. 
D) separate cost allocation base for each activity in the factory. 
A) single cost allocation base. 
B) separate cost allocation base for each department in the factory. 
C) single overhead cost pool for the factory. 
D) separate cost allocation base for each activity in the factory.

Question 2

Sparrow Manufacturing manufactures small parts and uses an activity-based costing system.
 
The following parts were produced in October with the following information:
 
Total manufacturing costs for part B is

Accepted Answer

A) $8,200. 
B) $15,200. 
C) $5,400. 
D) $12,400. 
A) $8,200. 
B) $15,200. 
C) $5,400. 
D) $12,400.

Question 3

Inspection is considered a value-added activity.

Accepted Answer

A) True 
 B)False

The use of departmental overhead rates will generally result in the use of a

Sparrow Manufacturing manufactures small parts and uses an activity-based costing system. The following parts were produced in October with the following information: Total manufacturing costs for part B is

Inspection is considered a value-added activity.

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Process Costing

Cost Behaviour

Cost-Volume-Profit Analysis

Short-Term Business Decisions

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Performance Evaluation and the Balanced Scorecard

Capital Investment Decisions and the Time Value of Money

Filters

Exam 4: Activity Based Costing

The use of departmental overhead rates will generally result in the use of a

Sparrow Manufacturing manufactures small parts and uses an activity-based costing system. The following parts were produced in October with the following information: Total manufacturing costs for part B is

Inspection is considered a value-added activity.

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Process Costing

Cost Behaviour

Cost-Volume-Profit Analysis

Short-Term Business Decisions

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Performance Evaluation and the Balanced Scorecard

Capital Investment Decisions and the Time Value of Money

Filters