Exam 4: Activity-Based Costing

Kryzski Company has a predetermined overhead rate of $6 per direct labor hour.Last year the company incurred $156,600 of actual manufacturing overhead cost and the account was $12,600 underapplied.How many direct labor hours were worked during the year?

In the time-driven ABC systems, managers

Material amounts of underapplied or overapplied overhead should be

Figure 4-10 The Emmanuele Company has collected the following data for use in calculating product costs: Activity Data: (expected and actual) Departmental Data: (expected and actual) - Refer to Figure 4-10.What is the consumption ratio for the plantwide activity rate?

Figure 4-15 Quint Manufacturing uses an activity-based costing system.The company produces Model 1 and Model 2.Information relating to the two products is as follows: The following costs are reported: -Refer to Figure 4-15.Setup costs assigned to Model 2 are

Walter Company uses a job-order costing system to account for product costs.The following information pertains to 2011: Factory overhead rate is $18 per direct labor hour. What is the amount of under- or overapplied overhead for Walter Company in 2011?

Product costs can be distorted if a unit-based activity driver is used and

Figure 4-2 The following information is provided for the year: - Refer to Figure 4-2.The actual overhead rate for applying manufacturing overhead is

Hilton Manufacturing uses an activity-based costing system.The company produces Model A and Model B.Information concerning the two products is as follows: Required:

Figure 4-10 The Emmanuele Company has collected the following data for use in calculating product costs: Activity Data: (expected and actual) Departmental Data: (expected and actual) - Refer to Figure 4-10.What is the unit product cost for mops?

Lyons, Inc., has identified the following overhead costs and activity drivers for next year: The following are the two product models completed during the year: The company's normal activity is 20,000 direct labor hours. Required:

Figure 4-5 The Hampshire Company produces 9 volt batteries and AAA batteries.The Hampshire Company uses a plantwide rate to apply overhead based on direct labor hours.The following data is given: -Refer to Figure 4-5.What is the predetermined overhead rate? (round to 2 decimal places)

Which of the following is NOT an approach to estimate practical capacity in a time-driven ABC system?

_____________ are nonfinancial and financial data that describe individual activities.

If activity-based costing is used, modifications made by engineering to the product design of several products would be classified as a

Figure 4-9 Winter Manufacturing has four categories of overhead.The four categories and expected overhead costs for each category for next year are listed as follows: Currently, overhead is applied using a predetermined overhead rate based upon budgeted direct labor hours.100,000 direct labor hours are budgeted for next year. The company has been asked to submit a bid for a proposed job.The plant manager feels that obtaining this job would result in new business in future years.Usually bids are based upon full manufacturing cost plus 10 percent. Estimates for the proposed job are as follows: The plant manager has heard of a new way of applying overhead that uses cost pools and activity drivers.Expected activity for the four activity drivers that would be used are: - Refer to Figure 4-9.What is the total cost of the proposed job if Winter Manufacturing uses direct labor hours as its only activity driver?

Long Industries uses a job-order costing system.The Molding Department applies overhead based on machine hours, while the Assembly Department applies overhead based on direct labor hours.The company made the following estimates at the beginning of the current year: The following information was available for Job No.7-29, which was started and completed during July: The predetermined overhead rate for the molding department is

The overhead rates of the traditional functional-based product costing use

Figure 4-8 Zipp Company manufactures two products (X and Y).The overhead costs ($84,000) have been divided into three cost pools that use the following activity drivers: - Refer to Figure 4-8.What is the allocation rate per setup using activity-based costing?

Figure 4-20 Owens Corporation produces specially machined parts.The parts are produced in batches in one continuous manufacturing process.Each part is custom produced and requires special engineering design activity (based on customer specifications).Once the design is completed, the equipment can be set up for batch production.Once the batch is completed, a sample is taken and inspected to see if the parts are within the tolerances allowed.Thus, the manufacturing process has four activities: engineering, setups, machining, and inspecting.Costs have been assigned to each activity using direct tracing and resource drivers: Owens produces two models: Model X and Model Y.The following table shows how the two products consume activity. -Refer to Figure 4-20.Determine the engineering costs assigned to model X using the two most expensive activities for cost pools.The costs of the two relatively inexpensive activities are allocated to the two most expensive activities in proportion to their costs.(Round to two decimal places.)The engineering cost assigned to model X would be