Question 1

Personnel administration 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.

Question 2

If the materials handling cost is allocated on the basis of direct labor-hours, how much of the total materials handling cost would be allocated to the wall mirrors? (Round off your answer to the nearest whole dollar.)

Accepted Answer

A) $13,220 
B) $15,053 
C) $9,892 
D) $8,243 
A) $13,220 
B) $15,053 
C) $9,892 
D) $8,243

Question 3

How much indirect factory wages and factory equipment depreciation cost would be assigned to the Customer Orders activity cost pool?

Accepted Answer

A) $247,000 
B) $390,000 
C) $214,500 
D) $780,000 
A) $247,000 
B) $390,000 
C) $214,500 
D) $780,000

Question 4

What is the overhead cost assigned to Product I3 under activity-based costing?

Accepted Answer

A) $3,780 
B) $14,000 
C) $4,560 
D) $780 
A) $3,780 
B) $14,000 
C) $4,560 
D) $780

Question 5

Madson Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs:   The distribution of resource consumption across the three activity cost pools is given below:   How much cost, in total, would be allocated in the first-stage allocation to the Order Processing activity cost pool?

Accepted Answer

A) $418,000 
B) $357,000 
C) $304,000 
D) $266,000 
A) $418,000 
B) $357,000 
C) $304,000 
D) $266,000

Question 6

Findt & Thompson PLC, a consulting firm, uses an activity-based costing in which there are three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system:
Costs:   Distribution of resource consumption:   Required:
a. How much cost, in total, would be allocated to the Working On Engagements activity cost pool?
b. How much cost, in total, would be allocated to the Business Development activity cost pool?
c. How much cost, in total, would be allocated to the Other activity cost pool?

Accepted Answer

All three parts can be answered using a

Question 7

Data concerning three of Pressnell Corporation's activity cost pools appear below:   Required:
Compute the activity rates for each of the three cost pools. Show your work!

Accepted Answer

The answer of Data concerning three of Pressnell Corporation's activity...

Question 8

What is the product margin for Product I3 under activity-based costing?

Accepted Answer

A) -$6,400 
B) $3,040 
C) $7,600 
D) $3,820 
A) -$6,400 
B) $3,040 
C) $7,600 
D) $3,820

Question 9

Bubb Corporation has provided the following data from its activity-based costing accounting system:   Required:
Compute the activity rates for each of the three cost pools. Show your work!

Accepted Answer

The answer of Bubb Corporation has provided the following data...

Question 10

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

Accepted Answer

A) $13,200 
B) $14,700 
C) $8,100 
D) $1,500 
A) $13,200 
B) $14,700 
C) $8,100 
D) $1,500

Question 11

What is the overhead cost assigned to Product H4 under activity-based costing?

Accepted Answer

A) $32,385 
B) $35,205 
C) $2,820 
D) $33,500 
A) $32,385 
B) $35,205 
C) $2,820 
D) $33,500

Question 12

Youd Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system:     How much cost, in total, would be allocated in the first-stage allocation to the Other activity cost pool?

Accepted Answer

A) $264,000 
B) $208,000 
C) $242,000 
D) $165,000 
A) $264,000 
B) $208,000 
C) $242,000 
D) $165,000

Question 13

The Spurling Cleaning Brigade Company provides housecleaning services to its clients. The company uses an activity-based costing system for its overhead costs. The company has provided the following data from its activity-based costing system.   The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs.
One particular client, the Vandal family, requested 32 jobs during the year that required a total of 192 hours of housecleaning. For this service, the client was charged $2,200.
Required:
a. Using the activity-based costing system, compute the customer margin for the Vandal family. Round off all calculations to the nearest whole cent.
b. Assume the company decides instead to use a traditional costing system in which ALL costs are allocated to customers on the basis of cleaning hours. Compute the margin for the Vandal family. Round off all calculations to the nearest whole cent.

Accepted Answer

a. The first step is to compute activity

Question 14

What is the product margin for Product R9 under activity-based costing?

Accepted Answer

A) $3,576 
B) $4,200 
C) -$3,800 
D) $916 
A) $3,576 
B) $4,200 
C) -$3,800 
D) $916

Question 15

Which of the following activities would be classified as a batch-level activity?

Accepted Answer

A) Setting up equipment. 
B) Designing a new product. 
C) Training employees. 
D) Milling a part required for the final product. 
A) Setting up equipment. 
B) Designing a new product. 
C) Training employees. 
D) Milling a part required for the final product.

Question 16

What is the overhead cost assigned to Product P3 under activity-based costing?

Accepted Answer

A) $30,000 
B) $5,916 
C) $5,640 
D) $11,556 
A) $30,000 
B) $5,916 
C) $5,640 
D) $11,556

Question 17

What is the overhead cost assigned to Product C6 under activity-based costing?

Accepted Answer

A) $19,920 
B) $5,100 
C) $42,500 
D) $25,020 
A) $19,920 
B) $5,100 
C) $42,500 
D) $25,020

Question 18

What is the overhead cost assigned to Product V2 under activity-based costing?

Accepted Answer

A) $28,980 
B) $5,600 
C) $34,580 
D) $40,000 
A) $28,980 
B) $5,600 
C) $34,580 
D) $40,000

Question 19

The following data have been provided by Mesa Corporation from its activity-based costing accounting system:   Distribution of Resource Consumption across Activity Cost Pools:   The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products.
Required:
a. Determine the total amount of supervisory wages and factory utilities costs that would be allocated to the Machining activity cost pool. Show your work!
b. Determine the total amount of supervisory wages and factory utilities costs that would NOT be assigned to products. Show your work!

Accepted Answer

a. Allocations to the Machinin

Question 20

Reach Consulting Corporation has its headquarters in Chicago and operates from three branch offices in Portland, Dallas, and Miami. Two of the company's activity cost pools are General Service and Research Service. These costs are allocated to the three branch offices using an activity-based costing system. Information for next year follows:   Estimated branch data for next year is as follows:   How much of the headquarters cost allocation should Dallas expect to receive next year?

Accepted Answer

A) $280,000 
B) $409,500 
C) $472,500 
D) $504,000 
A) $280,000 
B) $409,500 
C) $472,500 
D) $504,000

Personnel administration is an example of a:

If the materials handling cost is allocated on the basis of direct labor-hours, how much of the total materials handling cost would be allocated to the wall mirrors? (Round off your answer to the nearest whole dollar.)

How much indirect factory wages and factory equipment depreciation cost would be assigned to the Customer Orders activity cost pool?

What is the overhead cost assigned to Product I3 under activity-based costing?

Data concerning three of Pressnell Corporation's activity cost pools appear below: Required: Compute the activity rates for each of the three cost pools. Show your work!

What is the product margin for Product I3 under activity-based costing?

Bubb Corporation has provided the following data from its activity-based costing accounting system: Required: Compute the activity rates for each of the three cost pools. Show your work!

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

What is the overhead cost assigned to Product H4 under activity-based costing?

Youd Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system: How much cost, in total, would be allocated in the first-stage allocation to the Other activity cost pool?

What is the product margin for Product R9 under activity-based costing?

Which of the following activities would be classified as a batch-level activity?

What is the overhead cost assigned to Product P3 under activity-based costing?

What is the overhead cost assigned to Product C6 under activity-based costing?

What is the overhead cost assigned to Product V2 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

Personnel administration is an example of a:

If the materials handling cost is allocated on the basis of direct labor-hours, how much of the total materials handling cost would be allocated to the wall mirrors? (Round off your answer to the nearest whole dollar.)

How much indirect factory wages and factory equipment depreciation cost would be assigned to the Customer Orders activity cost pool?

What is the overhead cost assigned to Product I3 under activity-based costing?

Data concerning three of Pressnell Corporation's activity cost pools appear below: Required: Compute the activity rates for each of the three cost pools. Show your work!

What is the product margin for Product I3 under activity-based costing?

Bubb Corporation has provided the following data from its activity-based costing accounting system: Required: Compute the activity rates for each of the three cost pools. Show your work!

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

What is the overhead cost assigned to Product H4 under activity-based costing?

Youd Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system: How much cost, in total, would be allocated in the first-stage allocation to the Other activity cost pool?

What is the product margin for Product R9 under activity-based costing?

Which of the following activities would be classified as a batch-level activity?

What is the overhead cost assigned to Product P3 under activity-based costing?

What is the overhead cost assigned to Product C6 under activity-based costing?

What is the overhead cost assigned to Product V2 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