Question 1

Determine the overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc.uses a multiple department rate system. ​

Accepted Answer

A)  $396.80 per unit 
B)  $425.60 per unit 
C)  $320.00 per unit 
D)  $214.40 per unit 
A)  $396.80 per unit 
B)  $425.60 per unit 
C)  $320.00 per unit 
D)  $214.40 per unit

Question 2

Determine the activity rate for product development per change.

Accepted Answer

A)  $73,000 
B)  $8,588 
C)  $30,417 
D)  $16,222 
A)  $73,000 
B)  $8,588 
C)  $30,417 
D)  $16,222

Question 3

Given the following information,determine the activity rate for setups.

Accepted Answer

A)  $58.00 
B)  $18.00 
C)  $.75 
D)  $5.09 
A)  $58.00 
B)  $18.00 
C)  $.75 
D)  $5.09

Question 4

Transformations Hair Salon uses an activity-based costing system in its beauty salon to determine the cost of services.The salon has determined the costs of services by activity as follows:
​
   ​
   ​

Accepted Answer

The answer of Transformations Hair Salon uses an activity-based costing...

Question 5

Multiple production department factory overhead rates are most useful when production departments are very similar in their manufacturing processes.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following does not rely on managerial decisions involving accurate product costing?

Accepted Answer

A)  product constraints 
B)  emphasis of a product line 
C)  product mix 
D)  product price 
A)  product constraints 
B)  emphasis of a product line 
C)  product mix 
D)  product price

Question 7

Determine the activity rate per production order for scheduling.

Accepted Answer

A)  $200.00 
B)  $20.00 
C)  $29.41 
D)  $10.42 
A)  $200.00 
B)  $20.00 
C)  $29.41 
D)  $10.42

Question 8

Which of the following is not a reason for banks to use activity-based costing?

Accepted Answer

A)  to determine the amounts charged to customers for services provided 
B)  to determine service quality 
C)  to determine profitability of services provided 
D)  all of the above 
A)  to determine the amounts charged to customers for services provided 
B)  to determine service quality 
C)  to determine profitability of services provided 
D)  all of the above

Question 9

Use of a plantwide factory overhead rate assumes that the activities causing overhead costs are the same across all departments and products.

Accepted Answer

A) True 
 B)False

Question 10

Calculate the total factory overhead to be charged to desk lamps.

Accepted Answer

A)  $306,667 
B)  $235,000 
C)  $230,000 
D)  $225,000 
A)  $306,667 
B)  $235,000 
C)  $230,000 
D)  $225,000

Question 11

The selection of the factory overhead allocation method is important because the method selected determines the accuracy of the product cost.

Accepted Answer

A) True 
 B)False

Question 12

Managers depend on product costing to make decisions regarding continuing operations and product mix.

Accepted Answer

A) True 
 B)False

Question 13

If the budget estimates that a desk lamp will require 1 hours of finishing and 2 hours of production,how much factory overhead will the Kaumajet Factory allocate to each unit of desk lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours?

Accepted Answer

A)  $11.10 
B)  $4.91 
C)  $5.00 
D)  $7.20 
A)  $11.10 
B)  $4.91 
C)  $5.00 
D)  $7.20

Question 14

Determine the activity rate for procurement per purchase order.

Accepted Answer

A)  $43.53 
B)  $18.50 
C)  $15.42 
D)  $37.00 
A)  $43.53 
B)  $18.50 
C)  $15.42 
D)  $37.00

Question 15

The Klamath Corp.produces two products,saws and drills.Three activities are used in their manufacture.These activities and their associated costs and bases are as follows:
​
   Requirements:
a)Determine the activity rate for each activity.
b)Determine the overhead cost per unit for each product.

Accepted Answer

(a) ​Stamping:$200,000 / 10,00

Question 16

A single plantwide overhead rate method is very expensive to apply.

Accepted Answer

A) True 
 B)False

Question 17

If the budget estimates that a table lamp will require 2 hours of finishing and 1 hours of production,what is the total amount of factory overhead the Kaumajet Factory will allocate to table lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours,if 75,000 units are produced?

Accepted Answer

A)  $368,250 
B)  $540,000 
C)  $832,500 
D)  $475,000 
A)  $368,250 
B)  $540,000 
C)  $832,500 
D)  $475,000

Question 18

Bob's Biscuit Corporation budgeted $1,200,000 of factory overhead cost for the coming year.Its plantwide allocation base,machine hours,is budgeted at 100,000 hours.Budgeted units to be produced are 200,000 units.Bob's plantwide factory overhead rate is $12.00 per machine hour.

Accepted Answer

A) True 
 B)False

Question 19

Service companies can effectively use activity-based costing to compute product (service)costs.

Accepted Answer

A) True 
 B)False

Question 20

Determine the activity rate for materials handling per move.

Accepted Answer

A)  $58.82 
B)  $50.00 
C)  $20.83 
D)  $80.65 
A)  $58.82 
B)  $50.00 
C)  $20.83 
D)  $80.65

Exam 18: Activity-Based Costing

Determine the overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc.uses a multiple department rate system. ​

Determine the activity rate for product development per change.

Given the following information,determine the activity rate for setups.

Transformations Hair Salon uses an activity-based costing system in its beauty salon to determine the cost of services.The salon has determined the costs of services by activity as follows: ​ ​ ​

Multiple production department factory overhead rates are most useful when production departments are very similar in their manufacturing processes.

Which of the following does not rely on managerial decisions involving accurate product costing?

Determine the activity rate per production order for scheduling.

Which of the following is not a reason for banks to use activity-based costing?

Use of a plantwide factory overhead rate assumes that the activities causing overhead costs are the same across all departments and products.

Calculate the total factory overhead to be charged to desk lamps.

The selection of the factory overhead allocation method is important because the method selected determines the accuracy of the product cost.

Managers depend on product costing to make decisions regarding continuing operations and product mix.

Determine the activity rate for procurement per purchase order.

The Klamath Corp.produces two products,saws and drills.Three activities are used in their manufacture.These activities and their associated costs and bases are as follows: ​ Requirements: a)Determine the activity rate for each activity. b)Determine the overhead cost per unit for each product.

A single plantwide overhead rate method is very expensive to apply.

Bob's Biscuit Corporation budgeted $1,200,000 of factory overhead cost for the coming year.Its plantwide allocation base,machine hours,is budgeted at 100,000 hours.Budgeted units to be produced are 200,000 units.Bob's plantwide factory overhead rate is $12.00 per machine hour.

Service companies can effectively use activity-based costing to compute product (service)costs.

Determine the activity rate for materials handling per move.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current,installment Notes,and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

Determine the overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc.uses a multiple department rate system.

Transformations Hair Salon uses an activity-based costing system in its beauty salon to determine the cost of services.The salon has determined the costs of services by activity as follows:

The Klamath Corp.produces two products,saws and drills.Three activities are used in their manufacture.These activities and their associated costs and bases are as follows: Requirements: a)Determine the activity rate for each activity. b)Determine the overhead cost per unit for each product.