Bond Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs.The company has two departments: Assembly and Sanding.The Assembly Department uses a departmental overhead rate of $20 per machine hour,while the Sanding Department uses a departmental overhead rate of $15 per direct labor hour.Job 542 used the following direct labor hours and machine hours in the two departments: \[\begin{array} { | l | c | c | } \hline \text { Actual results } & \begin{array} { c } \text { Assembly } \\ \text { Department } \end{array} & \begin{array} { c } \text { Sanding } \\ \text { Department } \end{array} \\ \hline \text { Direct labor hours used } & 4 & 3 \\ \hline \text { Machine hours used } & 9 & 5 \\ \hline \end{array}\] The cost for direct labor is $25 per direct labor hour and the cost of the direct materials used by Job 542 is $1,200. - What was the total cost of Job 542 if Bond Industries used the departmental overhead rates to allocate manufacturing overhead?

A) $1,375 B) $1,425 C) $1,500 D) $1,600 A) $1,375 B) $1,425 C) $1,500 D) $1,600

Exam 4: Activity-Based Costing, lean Production, and the Costs of Quality

When calculating the total amount of manufacturing overhead to allocate to a particular job,the company would multiply each departmental overhead rate by ___ and then _ together the allocated amounts from each department.

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

Refined costing systems can be used to allocate ANY indirect costs to ANY cost objects.

Free

(True/False)

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Question 2

Correct Answer:

Verified

True

Appraisal costs are incurred to detect poor-quality goods or services.

Free

(True/False)

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Question 3

Correct Answer:

Verified

True

If a company uses departmental overhead allocation rates,then the amount of manufacturing overhead allocated to the job is equal to the plantwide overhead rate multiplied by the actual use of the cost allocation base.

(True/False)

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Question 4

Which of the following pertains to a lean production system?

(Multiple Choice)

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Question 5

Production loss caused by downtime is an example of what type of cost?

(Multiple Choice)

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Question 6

What is the first step in developing an ABC system?

(Multiple Choice)

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Question 7

Bond Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs.The company has two departments: Assembly and Sanding.The Assembly Department uses a departmental overhead rate of $20 per machine hour,while the Sanding Department uses a departmental overhead rate of $15 per direct labor hour.Job 542 used the following direct labor hours and machine hours in the two departments: Actual results Assembly Department Sanding Department Direct labor hours used 4 3 Machine hours used 9 5 The cost for direct labor is $25 per direct labor hour and the cost of the direct materials used by Job 542 is $1,200. - What was the total cost of Job 542 if Bond Industries used the departmental overhead rates to allocate manufacturing overhead?

(Multiple Choice)

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Question 8

Machine set-up would be considered a batch-level cost.

(True/False)

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Question 9

Which of the following is MOST likely to be the cost driver for the packaging and shipping activity?

(Multiple Choice)

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Question 10

PD Company has reengineered its production process and should now review and potentially revise its activity-based costing system.

(True/False)

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Question 11

Which term below best describes the quality cost category for "cost to re-inspect reworked food processors"?

(Multiple Choice)

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Question 12

Costs incurred to detect poor quality goods and services refer to:

(Multiple Choice)

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Question 13

Unit-level activities and costs are incurred once for every batch.

(True/False)

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Question 14

The benefits of adopting ABC/ABM are higher for companies in more competitive markets.

(True/False)

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Question 15

The benefits of using the ABC costing system are higher if the company:

(Multiple Choice)

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Question 16

Costs incurred to avoid poor quality goods or services are considered:

(Multiple Choice)

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Question 17

Which term below best describes the quality cost category for "lost profits from lost sales"?

(Multiple Choice)

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Question 18

Product testing is a prevention cost.

(True/False)

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Question 19

The cost of evaluating potential raw material suppliers is an example of a(n):

(Multiple Choice)

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Question 20

Showing 1 - 20 of 201

When calculating the total amount of manufacturing overhead to allocate to a particular job,the company would multiply each departmental overhead rate by ___ and then _ together the allocated amounts from each department.

Refined costing systems can be used to allocate ANY indirect costs to ANY cost objects.

Appraisal costs are incurred to detect poor-quality goods or services.

If a company uses departmental overhead allocation rates,then the amount of manufacturing overhead allocated to the job is equal to the plantwide overhead rate multiplied by the actual use of the cost allocation base.

Which of the following pertains to a lean production system?

Production loss caused by downtime is an example of what type of cost?

What is the first step in developing an ABC system?

Machine set-up would be considered a batch-level cost.

Which of the following is MOST likely to be the cost driver for the packaging and shipping activity?

PD Company has reengineered its production process and should now review and potentially revise its activity-based costing system.

Which term below best describes the quality cost category for "cost to re-inspect reworked food processors"?

Costs incurred to detect poor quality goods and services refer to:

Unit-level activities and costs are incurred once for every batch.

The benefits of adopting ABC/ABM are higher for companies in more competitive markets.

The benefits of using the ABC costing system are higher if the company:

Costs incurred to avoid poor quality goods or services are considered:

Which term below best describes the quality cost category for "lost profits from lost sales"?

Product testing is a prevention cost.

The cost of evaluating potential raw material suppliers is an example of a(n):

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Process Costing

Cost Behavior

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

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 4: Activity-Based Costing, lean Production, and the Costs of Quality

When calculating the total amount of manufacturing overhead to allocate to a particular job,the company would multiply each departmental overhead rate by ___________ and then _________ together the allocated amounts from each department.

Refined costing systems can be used to allocate ANY indirect costs to ANY cost objects.

Appraisal costs are incurred to detect poor-quality goods or services.

If a company uses departmental overhead allocation rates,then the amount of manufacturing overhead allocated to the job is equal to the plantwide overhead rate multiplied by the actual use of the cost allocation base.

Which of the following pertains to a lean production system?

Production loss caused by downtime is an example of what type of cost?

What is the first step in developing an ABC system?

Machine set-up would be considered a batch-level cost.

Which of the following is MOST likely to be the cost driver for the packaging and shipping activity?

PD Company has reengineered its production process and should now review and potentially revise its activity-based costing system.

Which term below best describes the quality cost category for "cost to re-inspect reworked food processors"?

Costs incurred to detect poor quality goods and services refer to:

Unit-level activities and costs are incurred once for every batch.

The benefits of adopting ABC/ABM are higher for companies in more competitive markets.

The benefits of using the ABC costing system are higher if the company:

Costs incurred to avoid poor quality goods or services are considered:

Which term below best describes the quality cost category for "lost profits from lost sales"?

Product testing is a prevention cost.

The cost of evaluating potential raw material suppliers is an example of a(n):

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Process Costing

Cost Behavior

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

Statement of Cash Flows

Financial Statement Analysis

Filters

When calculating the total amount of manufacturing overhead to allocate to a particular job,the company would multiply each departmental overhead rate by ___ and then _ together the allocated amounts from each department.