Exam 3: Activity-Based Costing
Exam 1: Managerial Accounting and Cost Concepts187 Questions
Exam 2: Job-Order Costing144 Questions
Exam 3: Activity-Based Costing208 Questions
Exam 4: Process Costing82 Questions
Exam 5: Cost-Volume-Profit Relationships121 Questions
Exam 6: Variable Costing and Segment Reporting: Tools for Management187 Questions
Exam 7: Master Budgeting229 Questions
Exam 8: Flexible Budgets, Standard Costs, and Variance Analysis173 Questions
Exam 9: Performance Measurement in Decentralized Organizations423 Questions
Exam 10: Differential Analysis: the Key to Decision Making115 Questions
Exam 11: Capital Budgeting Decisions118 Questions
Exam 12: Statement of Cash Flows132 Questions
Exam 13: Financial Statement Analysis289 Questions
Exam 14: Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System111 Questions
Exam 15: Journal Entries to Record Variances56 Questions
Exam 16: The Concept of Present Value13 Questions
Exam 17: The Direct Method of Determining the Net Cash Provided by Operating Activities56 Questions
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Penegar, Inc., manufactures and sells two products: Product X7 and Product S4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
The direct labor rate is $21.60 per DLH. The direct materials cost per unit for each product is given below:
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product S4 would be closest to:



(Multiple Choice)
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All other things the same, the unit product costs of high volume products will decrease and the unit product costs of low volume products will increase when switching from a traditional costing system to an activity-based costing system if:
(Multiple Choice)
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Mcleese, Inc., manufactures and sells two products: Product I6 and Product L1. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
The direct labor rate is $26.60 per DLH. The direct materials cost per unit for each product is given below:
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
The overhead applied to each unit of Product L1 under activity-based costing is closest to:



(Multiple Choice)
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Penegar, Inc., manufactures and sells two products: Product X7 and Product S4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
The direct labor rate is $21.60 per DLH. The direct materials cost per unit for each product is given below:
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
The overhead applied to each unit of Product S4 under activity-based costing is closest to:



(Multiple Choice)
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Aboud, Inc., manufactures and sells two products: Product Q6 and Product Z7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
The direct labor rate is $25.90 per DLH. The direct materials cost per unit for each product is given below:
The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
The total overhead applied to Product Q6 under activity-based costing is closest to:



(Multiple Choice)
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Rosman, Inc., manufactures and sells two products: Product Q1 and Product G2. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
The direct labor rate is $23.80 per DLH. The direct materials cost per unit for each product is given below:
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Required:
What is the difference between the unit product costs under the under the traditional costing method and the activity-based costing system for each of the two products?



(Essay)
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Boahn, Inc., manufactures and sells two products: Product B6 and Product W8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product W8 would be closest to:


(Multiple Choice)
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Serva, Inc., manufactures and sells two products: Product R4 and Product N4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
The direct labor rate is $24.70 per DLH. The direct materials cost per unit for each product is given below:
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
The unit product cost of Product R4 under activity-based costing is closest to:



(Multiple Choice)
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Hewett, Inc., manufactures and sells two products: Product E7 and Product U7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
The direct labor rate is $29.50 per DLH. The direct materials cost per unit is $164.10 for Product E7 and $289.50 for Product U7. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
The unit product cost of Product E7 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:


(Multiple Choice)
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Crazier, Inc., manufactures and sells two products: Product U8 and Product W2. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
The direct labor rate is $22.10 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit Product U8 \ 160.80 Product W2 \ 185.40 The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
The unit product cost of Product U8 is closest to:


(Multiple Choice)
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Accurso, Inc., manufactures and sells two products: Product J9 and Product S5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
The direct labor rate is $22.50 per DLH. The direct materials cost per unit for each product is given below:
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
The overhead applied to each unit of Product J9 under activity-based costing is closest to:



(Multiple Choice)
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In general, activities and costs should be combined in an activity-based costing system only if they fall within the same level in the cost hierarchy.
(True/False)
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Schoeninger, Inc., manufactures and sells two products: Product X1 and Product I6. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:

(Multiple Choice)
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Vivino, Inc., manufactures and sells two products: Product T3 and Product J4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
The direct labor rate is $24.80 per DLH. The direct materials cost per unit for each product is given below:
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Required:
In all computations involving dollars in the following requirements, round off your answer to the nearest whole cent.
a. Compute the activity rates under the activity-based costing system.
b. Determine how much overhead would be assigned to each product under the activity-based costing system.
c. Determine the unit product cost of each product under the activity-based costing method.



(Essay)
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Nethery, Inc., manufactures and sells two products: Product U5 and Product X2. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
The total overhead applied to Product U5 under activity-based costing is closest to:

(Multiple Choice)
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An activity rated is computed for each activity cost pool-not for each product.
(True/False)
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Gerula, Inc., manufactures and sells two products: Product Z9 and Product Q6. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
The activity rate for the General Factory activity cost pool under activity-based costing is closest to:

(Multiple Choice)
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Shadow, Inc., manufactures and sells two products: Product X9 and Product L1. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
The direct labor rate is $21.20 per DLH. The direct materials cost per unit for each product is given below:
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Required:
Determine the unit product cost of each product under the activity-based costing method.



(Essay)
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Frogge, Inc., manufactures and sells two products: Product H0 and Product N3. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
The direct labor rate is $23.60 per DLH. The direct materials cost per unit is $160.60 for Product H0 and $240.30 for Product N3. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
The activity rate for the General Factory activity cost pool under activity-based costing is closest to:


(Multiple Choice)
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Aboud, Inc., manufactures and sells two products: Product Q6 and Product Z7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
The direct labor rate is $25.90 per DLH. The direct materials cost per unit for each product is given below:
The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
The activity rate for the General Factory activity cost pool under activity-based costing is closest to:



(Multiple Choice)
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