Exam 4: Activity-Based Costing

Assume the following: Actual overhead costs equaled estimated overhead.Actual direct labor hours exceeded estimated direct labor hours used to calculate the predetermined overhead rate.If overhead is applied using the predetermined overhead rate, then overhead is

The Jewnoe plant has two production departments: molding and assembly.The plant produces two products: A and B.Cost information for the production departments is given below: The following table presents activity information about the departments and products: Required:

Figure 4-6 Cabrini Company produces two products: toy trucks and toy cars.They use departmental overhead rates for the two production departments: molding and finishing.Molding uses machine hours to assign overhead and Finishing uses direct labor hours.50,000 trucks and 250,000 cars are produced.Please find the following data: - Refer to Figure 4-6.What are the departmental overhead rates for the molding and finishing department respectively?

Figure 4-2 The following information is provided for the year: - Refer to Figure 4-2.If normal costing is used, the amount of overhead applied for the year is

Figure 4-17 Moss Corporation has the following activities: creating bills of materials (BOM), studying manufacturing capabilities, improving manufacturing processes, training employees, and designing tooling.The general ledger accounts reveal the following expenditures for manufacturing engineering: The equipment is used for two activities: improving processes and designing tooling.Thirty-five percent of the equipment's time is used for improving processes and 65 percent is used for designing tools.The salaries are for two engineers.One is paid $50,000, while the other earns $25,000.The $50,000 engineer spends 40 percent of his time training employees in new processes and 60 percent of his time on improving processes.The remaining engineer spends equal time on all activities.Supplies are consumed in the following proportions: - Refer to 4-17.What is the cost assigned to the training employees activity?

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.How much overhead is applied to each 9 volt batteries and AAA batteries respectively? (round to 2 decimal places)

Figure 4-11 Yang Manufacturing Company manufactures two products (A and B).The overhead costs ($58,000) have been divided into three cost pools that use the following activity drivers: -Refer to Figure 4-11.What is the allocation rate per labor transaction using ABC?

Which of the following statements is TRUE?

Figure 4-12 Vaughn, Inc., has identified the following overhead costs and activity drivers for next year: The following are two of the jobs completed during the year: The company's normal activity is 2,000 direct labor hours. - Refer to Figure 4-12.If the four activity drivers are used to allocate overhead costs, total overhead allocated to Job 10A would be

If activity-based costing is used, product inspections would be classified as a

If a firm has implemented activity-based procedures for home office expenses, it will

A secondary activity is

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.Labor-related overhead costs assigned to Model 1 are

Figure 4-12 Vaughn, Inc., has identified the following overhead costs and activity drivers for next year: The following are two of the jobs completed during the year: The company's normal activity is 2,000 direct labor hours. - Refer to Figure 4-12.If the number of setups is used to assign setup costs, the amount of setup costs assigned to Job 10A would be