Would the following activities at a manufacturer of canned soup be best classified as unit-level,batch-level,product-level,or organization-sustaining activities? \[\begin{array} { | c | c | c | } \hline & \begin{array} { c } \text { Researching new } \\ \text { recipes } \end{array} & \begin{array} { c } \text { Shipping orders to grocery } \\ \text { stores } \end{array} \\ \text { A. } & \text { Unit } & \text { Unit } \\ \hline \text { B. } & \text { Batch } & \text { Batch } \\ \hline \text { C. } & \text { Product } & \text { Unit } \\ \hline \text { D. } & \text { Product } & \text { Batch } \\ \hline \end{array}\]

A) Option A B) Option B C) Option C D) Option D A) Option A B) Option B C) Option C D) Option D

Exam 9: Activity-Based Costing

Would the following activities at a manufacturer of canned soup be best classified as unit-level,batch-level,product-level,or organization-sustaining activities? Researching new recipes Shipping orders to grocery stores A. Unit Unit B. Batch Batch C. Product Unit D. Product Batch

(Multiple Choice)

4.7/5

(42)

Question 141

Cassidy Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs).The company has two products,VIP and Kommander,about which it has provided the following data: VIP Kommander Direct materials per unit \ 27.50 \ 62.10 Direct labor per unit \ 15.60 \ 52.00 Direct labor-hours per unit 0.60 2.00 Annual production 40,000 15,000 The company's estimated total manufacturing overhead for the year is $2,449,440 and the company's estimated total direct labor-hours for the year is 54,000.The company is considering using a variation of activity-based costing to determine its unit product costs for external reports.Data for this proposed activity-based costing system appear below: Activities and Actirity Measures Estimeted Overhead cost Supporting direct labor (DLHs) \9 18,000 Setting up machines (setups) 397,440 Parts administration (part 1,134,000 ypes) Total \2 ,449,440 $Cassidy Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs).The company has two products,VIP and Kommander,about which it has provided the following data: \begin{array} { | l | r | r | } \hline & \text { VIP } & \text { Kommander } \\ \hline \text { Direct materials per unit } & \$ 27.50 & \$ 62.10 \\ \hline \text { Direct labor per unit } & \$ 15.60 & \$ 52.00 \\ \hline \text { Direct labor-hours per unit } & 0.60 & 2.00 \\ \hline \text { Annual production } & 40,000 & 15,000 \\ \hline \end{array} The company's estimated total manufacturing overhead for the year is $2,449,440 and the company's estimated total direct labor-hours for the year is 54,000.The company is considering using a variation of activity-based costing to determine its unit product costs for external reports.Data for this proposed activity-based costing system appear below: \begin{array}{|l|r|} \hline \begin{array}{l} \text { Activities and Actirity } \\ \text { Measures } \end{array} & \text { Estimeted Overhead } \\ & \text { cost}\\ \text { Supporting direct labor (DLHs) } & \$918,000 \\ \hline \text { Setting up machines (setups) } &397,440 \\ \hline \text { Parts administration (part } & 1,134,000\\ \text { ypes) } & \\ \hline \text { Total } & \$2,449,440 \\ \hline \end{array} The unit product cost of Product Kommander under the activity-based costing system is closest to:$ The unit product cost of Product Kommander under the activity-based costing system is closest to:

(Multiple Choice)

4.8/5

(40)

Question 142

Companies using activity-based costing (ABC)have learned that costs are a function of:

(Multiple Choice)

4.8/5

(34)

Question 143

The department cost allocation method provides more accurate product cost information for managerial decision-making than the plantwide cost allocation method.

(True/False)

4.9/5

(31)

Question 144

Which of the following measures is used by activity-based costing (ABC)systems as an allocation base for allocating overhead costs to the units produced?

(Multiple Choice)

4.9/5

(33)

Question 145

Describe four classifications of cost drivers.

(Essay)

4.8/5

(37)

Question 146

Which of the following should not be used as the allocation base in a company that appropriately uses a single plantwide rate?

(Multiple Choice)

4.9/5

(40)

Question 147

Chang Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs).The company has two products,Plain and Fancy,about which it has provided the following data: Plain Fancy Direct materials per unit \ 24.50 \ 59.30 Direct labor per unit \ 5.00 \ 25.00 Direct labor-hours per unit 0.20 1.00 Annual production 45,000 15,000 The company's estimated total manufacturing overhead for the year is $985,440 and the company's estimated total direct labor-hours for the year is 24,000.The company is considering using a variation of activity-based costing to determine its unit product costs for external reports.Data for this proposed activity-based costing system appear below: Activities and Actirity Measures Estimeted Overhead cost Supporting direct labor (DLHs) \ 384,000 Setting up machines (setups) 255,840 Parts administration (part 345,600 ypes) Total \ 985,440 $Chang Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs).The company has two products,Plain and Fancy,about which it has provided the following data: \begin{array} { | l | r | r | } \hline & \text { Plain } & \text { Fancy } \\ \hline \text { Direct materials per unit } & \$ 24.50 & \$ 59.30 \\ \hline \text { Direct labor per unit } & \$ 5.00 & \$ 25.00 \\ \hline \text { Direct labor-hours per unit } & 0.20 & 1.00 \\ \hline \text { Annual production } & 45,000 & 15,000 \\ \hline \end{array} The company's estimated total manufacturing overhead for the year is $985,440 and the company's estimated total direct labor-hours for the year is 24,000.The company is considering using a variation of activity-based costing to determine its unit product costs for external reports.Data for this proposed activity-based costing system appear below: \begin{array}{|l|r|} \hline \begin{array}{l} \text { Activities and Actirity } \\ \text { Measures } \end{array} & \text { Estimeted Overhead } \\ & \text { cost}\\ \text { Supporting direct labor (DLHs) } & \$ 384,000 \\ \hline \text { Setting up machines (setups) } & 255,840 \\ \hline \text { Parts administration (part } & 345,600 \\ \text { ypes) } & \\ \hline \text { Total } & \$ 985,440 \\ \hline \end{array} The manufacturing overhead that would be applied to a unit of Plain under the company's traditional costing system is closest to:$ The manufacturing overhead that would be applied to a unit of Plain under the company's traditional costing system is closest to:

(Multiple Choice)

4.9/5

(44)

Question 148

Cassidy Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs).The company has two products,VIP and Kommander,about which it has provided the following data: VIP Kommander Direct materials per unit \ 27.50 \ 62.10 Direct labor per unit \ 15.60 \ 52.00 Direct labor-hours per unit 0.60 2.00 Annual production 40,000 15,000 The company's estimated total manufacturing overhead for the year is $2,449,440 and the company's estimated total direct labor-hours for the year is 54,000.The company is considering using a variation of activity-based costing to determine its unit product costs for external reports.Data for this proposed activity-based costing system appear below: Activities and Actirity Measures Estimeted Overhead cost Supporting direct labor (DLHs) \9 18,000 Setting up machines (setups) 397,440 Parts administration (part 1,134,000 ypes) Total \2 ,449,440 $Cassidy Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs).The company has two products,VIP and Kommander,about which it has provided the following data: \begin{array} { | l | r | r | } \hline & \text { VIP } & \text { Kommander } \\ \hline \text { Direct materials per unit } & \$ 27.50 & \$ 62.10 \\ \hline \text { Direct labor per unit } & \$ 15.60 & \$ 52.00 \\ \hline \text { Direct labor-hours per unit } & 0.60 & 2.00 \\ \hline \text { Annual production } & 40,000 & 15,000 \\ \hline \end{array} The company's estimated total manufacturing overhead for the year is $2,449,440 and the company's estimated total direct labor-hours for the year is 54,000.The company is considering using a variation of activity-based costing to determine its unit product costs for external reports.Data for this proposed activity-based costing system appear below: \begin{array}{|l|r|} \hline \begin{array}{l} \text { Activities and Actirity } \\ \text { Measures } \end{array} & \text { Estimeted Overhead } \\ & \text { cost}\\ \text { Supporting direct labor (DLHs) } & \$918,000 \\ \hline \text { Setting up machines (setups) } &397,440 \\ \hline \text { Parts administration (part } & 1,134,000\\ \text { ypes) } & \\ \hline \text { Total } & \$2,449,440 \\ \hline \end{array} The unit product cost of Product VIP under the company's traditional costing system is closest to:$ The unit product cost of Product VIP under the company's traditional costing system is closest to:

(Multiple Choice)

4.8/5

(36)

Question 149

Showing 141 - 149 of 149

Would the following activities at a manufacturer of canned soup be best classified as unit-level,batch-level,product-level,or organization-sustaining activities? Researching new recipes Shipping orders to grocery stores A. Unit Unit B. Batch Batch C. Product Unit D. Product Batch

Companies using activity-based costing (ABC)have learned that costs are a function of:

The department cost allocation method provides more accurate product cost information for managerial decision-making than the plantwide cost allocation method.

Which of the following measures is used by activity-based costing (ABC)systems as an allocation base for allocating overhead costs to the units produced?

Describe four classifications of cost drivers.

Which of the following should not be used as the allocation base in a company that appropriately uses a single plantwide rate?

Cost Accounting: Information for Decision Making

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Fundamentals of Product and Service Costing

Job Costing

Process Costing

Fundamentals of Cost Management

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Fundamentals of Variance Analysis

Additional Topics in Variance Analysis

Performance Measurement to Support Business Strategy

Filters