Question 1

Designing a new product is an example of a:

Accepted Answer

A) Unit-level activity. 
B) Batch-level activity. 
C) Product-level activity. 
D) Organization-sustaining activity. 
A) Unit-level activity. 
B) Batch-level activity. 
C) Product-level activity. 
D) Organization-sustaining activity. C

Question 2

Assuming that the company charges $534.11 for the Sparacio wedding cake, what would be the overall margin on the order?

Accepted Answer

A) $441.41 
B) $170.89 
C) $164.56 
D) $92.70 
A) $441.41 
B) $170.89 
C) $164.56 
D) $92.70 D

Question 3

What is the overhead cost assigned to Product H3 under activity-based costing?

Accepted Answer

A) $10,974 
B) $11,000 
C) $3,300 
D) $14,274 
A) $10,974 
B) $11,000 
C) $3,300 
D) $14,274 D

Question 4

What is the product margin for Product Q9 under activity-based costing?

Accepted Answer

A) $32,200 
B) $3,293 
C) $23,600 
D) $18,008 
A) $32,200 
B) $3,293 
C) $23,600 
D) $18,008

Question 5

Yentzer Corporation has an activity-based costing system with three activity cost pools-Processing, Setting Up, and Other. The company's overhead costs consist of equipment depreciation and indirect labor and are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation totals $72,000 and indirect labor totals $8,000. Data concerning the distribution of resource consumption across activity cost pools appear below:   Required:
Assign overhead costs to activity cost pools using activity-based costing.

Accepted Answer

Assign overhead costs to activity cost p

Question 6

The cost per unit of Product B is closest to:

Accepted Answer

A) $32.71 
B) $60.12 
C) $22.95 
D) $62.73 
A) $32.71 
B) $60.12 
C) $22.95 
D) $62.73

Question 7

How much supervisory wages and factory supplies cost would NOT be assigned to products using the activity-based costing system?

Accepted Answer

A) $320,000 
B) $52,000 
C) $100,000 
D) $0 
A) $320,000 
B) $52,000 
C) $100,000 
D) $0

Question 8

Would the following activities at a manufacturer of canned soup be best classified as unit-level, batch-level, product-level, or organization-sustaining activities?

Accepted Answer

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

Question 9

What is the product margin for Product P3 under activity-based costing?

Accepted Answer

A) -$15,600 
B) $2,844 
C) $14,400 
D) $8,484 
A) -$15,600 
B) $2,844 
C) $14,400 
D) $8,484

Question 10

Hugle Corporation's activity-based costing system has three activity cost pools-Machining, Setting Up, and Other. The company's overhead costs have already been allocated to these cost pools as follows:   Costs in the Machining cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. The following table shows the machine-hours and number of batches associated with each of the company's two products:   Additional data concerning the company's products appears below:   Required:
a. Calculate activity rates for each activity cost pool using activity-based costing.
b. Determine the amount of overhead cost that would be assigned to each product using activity-based costing.
c. Determine the product margins for each product using activity-based costing.

Accepted Answer

a. Computation of activity rat

Question 11

Organization-sustaining activities are activities of the general organization that support specific products.

Accepted Answer

A) True 
 B)False

Question 12

The activity rate for the Supervising activity cost pool under activity-based costing is closest to:

Accepted Answer

A) $3.50 per batch 
B) $28.50 per batch 
C) $3.68 per batch 
D) $2.85 per batch 
A) $3.50 per batch 
B) $28.50 per batch 
C) $3.68 per batch 
D) $2.85 per batch

Question 13

Costs classified as batch-level costs should depend on the number of batches processed rather than on the number of units produced, the number of units sold, or other measures of volume.

Accepted Answer

A) True 
 B)False

Question 14

Transaction drivers usually take more effort to record than duration drivers.

Accepted Answer

A) True 
 B)False

Question 15

Schmeider Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.   Data concerning two products appear below:   Required:
How much overhead cost would be assigned to each of the two products using the company's activity-based costing system?

Accepted Answer

The overhead cost ch

Question 16

If the materials handling cost is allocated on the basis of material moves, how much of the total materials handling cost would be allocated to the specialty windows? (Round off your answer to the nearest whole dollar.)

Accepted Answer

A) $3,266 
B) $9,274 
C) $8,243 
D) $6,595 
A) $3,266 
B) $9,274 
C) $8,243 
D) $6,595

Question 17

A transaction driver is:

Accepted Answer

A) An event that causes a transaction to begin. 
B) A measure of the amount of time required to perform an activity. 
C) An event that causes a transaction to end. 
D) A simple count of the number of times an activity occurs. 
A) An event that causes a transaction to begin. 
B) A measure of the amount of time required to perform an activity. 
C) An event that causes a transaction to end. 
D) A simple count of the number of times an activity occurs.

Question 18

The activity rate for the Order Filling activity cost pool under activity-based costing is closest to:

Accepted Answer

A) $23.00 per order 
B) $77.00 per order 
C) $1.00 per order 
D) $3.33 per order 
A) $23.00 per order 
B) $77.00 per order 
C) $1.00 per order 
D) $3.33 per order

Question 19

Pressler Corporation's activity-based costing system has three activity cost pools-Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources.     Costs in the Machining cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products.   Additional data concerning the company's products appears below:   Required:
a. Assign overhead costs to activity cost pools using activity-based costing.
b. Calculate activity rates for each activity cost pool using activity-based costing.
c. Determine the amount of overhead cost that would be assigned to each product using activity-based costing.
d. Determine the product margins for each product using activity-based costing.

Accepted Answer

a. Assign overhead costs to activity cos

Question 20

How much overhead cost is allocated to the Order Filling activity cost pool under activity-based costing?

Accepted Answer

A) $10,300 
B) $9,600 
C) $700 
D) $16,900 
A) $10,300 
B) $9,600 
C) $700 
D) $16,900

Designing a new product is an example of a:

Assuming that the company charges $534.11 for the Sparacio wedding cake, what would be the overall margin on the order?

What is the overhead cost assigned to Product H3 under activity-based costing?

What is the product margin for Product Q9 under activity-based costing?

The cost per unit of Product B is closest to:

How much supervisory wages and factory supplies cost would NOT be assigned to products using the activity-based costing system?

Would the following activities at a manufacturer of canned soup be best classified as unit-level, batch-level, product-level, or organization-sustaining activities?

What is the product margin for Product P3 under activity-based costing?

Organization-sustaining activities are activities of the general organization that support specific products.

The activity rate for the Supervising activity cost pool under activity-based costing is closest to:

Costs classified as batch-level costs should depend on the number of batches processed rather than on the number of units produced, the number of units sold, or other measures of volume.

Transaction drivers usually take more effort to record than duration drivers.

Schmeider Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Data concerning two products appear below: Required: How much overhead cost would be assigned to each of the two products using the company's activity-based costing system?

If the materials handling cost is allocated on the basis of material moves, how much of the total materials handling cost would be allocated to the specialty windows? (Round off your answer to the nearest whole dollar.)

A transaction driver is:

The activity rate for the Order Filling activity cost pool under activity-based costing is closest to:

How much overhead cost is allocated to the Order Filling activity cost pool under activity-based costing?

Managerial Accounting and Cost Concepts

Cost-Volume-Profit Relationships

Job-Order Costing

Variable Costing and Segment Reporting: Tools for Management

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Capital Budgeting Decisions

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Managerial Accounting and Cost Concepts

Job-Order Costing

Activity-Based-Costing: a Tool to Aid Decision Making

A Capital Budgeting Decisions

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Performance Measurement in Decentralized Organizations

Profitability Analysis

Pricing Products and Services

Filters

Exam 5: Activity-Based-Costing: a Tool to Aid Decision Making

Designing a new product is an example of a:

Assuming that the company charges $534.11 for the Sparacio wedding cake, what would be the overall margin on the order?

What is the overhead cost assigned to Product H3 under activity-based costing?

What is the product margin for Product Q9 under activity-based costing?

The cost per unit of Product B is closest to:

How much supervisory wages and factory supplies cost would NOT be assigned to products using the activity-based costing system?

Would the following activities at a manufacturer of canned soup be best classified as unit-level, batch-level, product-level, or organization-sustaining activities?

What is the product margin for Product P3 under activity-based costing?

Organization-sustaining activities are activities of the general organization that support specific products.

The activity rate for the Supervising activity cost pool under activity-based costing is closest to:

Costs classified as batch-level costs should depend on the number of batches processed rather than on the number of units produced, the number of units sold, or other measures of volume.

Transaction drivers usually take more effort to record than duration drivers.

Schmeider Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Data concerning two products appear below: Required: How much overhead cost would be assigned to each of the two products using the company's activity-based costing system?

If the materials handling cost is allocated on the basis of material moves, how much of the total materials handling cost would be allocated to the specialty windows? (Round off your answer to the nearest whole dollar.)

A transaction driver is:

The activity rate for the Order Filling activity cost pool under activity-based costing is closest to:

How much overhead cost is allocated to the Order Filling activity cost pool under activity-based costing?

Managerial Accounting and Cost Concepts

Cost-Volume-Profit Relationships

Job-Order Costing

Variable Costing and Segment Reporting: Tools for Management

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Capital Budgeting Decisions

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Managerial Accounting and Cost Concepts

Job-Order Costing

Activity-Based-Costing: a Tool to Aid Decision Making

A Capital Budgeting Decisions

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Performance Measurement in Decentralized Organizations

Profitability Analysis

Pricing Products and Services

Filters