Exam 15: Activity-Based Absorption Costing
Exam 1: Managerial Accounting and Cost Concepts186 Questions
Exam 2: Cost-Volume-Profit Relationships187 Questions
Exam 3: Job-Order Costing100 Questions
Exam 4: Variable Costing and Segment Reporting: Tools for Management224 Questions
Exam 5: Activity-Based-Costing: a Tool to Aid Decision Making145 Questions
Exam 6: Differential Analysis: the Key to Decision Making174 Questions
Exam 7: Capital Budgeting Decisions167 Questions
Exam 8: Profit Planning172 Questions
Exam 9: Flexible Budgets and Performance Analysis306 Questions
Exam 10: Standard Costs and Variances187 Questions
Exam 11: Performance Measurement in Decentralized Organizations115 Questions
Exam 12: Pricing Products and Services82 Questions
Exam 13: Profitability Analysis76 Questions
Exam 14: Least Squares Regression Computations21 Questions
Exam 15: Activity-Based Absorption Costing12 Questions
Exam 16: the Predetermined Overhead Rate and Capacity28 Questions
Exam 17: Super-Variable Costing49 Questions
Exam 18: Abc Action Analysis16 Questions
Exam 19: the Concept of Present Value13 Questions
Exam 20: Income Taxes and the Net Present Value Method147 Questions
Exam 21: Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System111 Questions
Exam 22: Transfer Pricing25 Questions
Exam 23: Service Department Charges51 Questions
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(Appendix 4A)Binegar 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, R58G and R09O, about which it has provided the following data:
The company's estimated total manufacturing overhead for the year is $1, 617, 600 and the company's estimated total direct labor-hours for the year is 24, 000. The company is considering using a form of activity-based costing to determine its unit product costs for external reports.Data for this proposed activity-based costing system appear below:
The manufacturing overhead that would be applied to a unit of product R58G under the company's traditional costing system is closest to:



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(Multiple Choice)
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Correct Answer:
A
(Appendix 4A)Pacchiana 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, R21V and D00B, about which it has provided the following data:
The company's estimated total manufacturing overhead for the year is $1, 262, 880 and the company's estimated total direct labor-hours for the year is 36, 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:
The unit product cost of product D00B under the activity-based costing system is closest to:



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(Multiple Choice)
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Correct Answer:
A
(Appendix 4A)Riha 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, Y47R and G13V, about which it has provided the following data:
The company's estimated total manufacturing overhead for the year is $1, 879, 960 and the company's estimated total direct labor-hours for the year is 43, 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:
Required:
a.Determine the unit product cost of each of the company's two products under the traditional costing system.
b.Determine the unit product cost of each of the company's two products under activity-based costing system.



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(Essay)
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Correct Answer:
a.Traditional Unit Product Costs
Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $1, 879, 960 ÷ 43, 000 DLHs = $43.72 per DLH b.ABC Unit Product Costs
Overhead cost for Y47R
Overhead cost for G13V
(Appendix 4A)Kebort 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, U86Y and M91F, about which it has provided the following data:
The company's estimated total manufacturing overhead for the year is $2, 541, 760 and the company's estimated total direct labor-hours for the year is 47, 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:
The unit product cost of product U86Y under the company's traditional costing system is closest to:



(Multiple Choice)
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(Appendix 4A)Pacchiana 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, R21V and D00B, about which it has provided the following data:
The company's estimated total manufacturing overhead for the year is $1, 262, 880 and the company's estimated total direct labor-hours for the year is 36, 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:
The unit product cost of product R21V under the company's traditional costing system is closest to:



(Multiple Choice)
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(Appendix 4A)Koszyk 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, P85G and C43S, about which it has provided the following data:
The company's estimated total manufacturing overhead for the year is $2, 264, 000 and the company's estimated total direct labor-hours for the year is 40, 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:
The manufacturing overhead that would be applied to a unit of product C43S under the activity-based costing system is closest to:



(Multiple Choice)
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(Appendix 4A)Kebort 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, U86Y and M91F, about which it has provided the following data:
The company's estimated total manufacturing overhead for the year is $2, 541, 760 and the company's estimated total direct labor-hours for the year is 47, 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:
The unit product cost of product M91F under the activity-based costing system is closest to:



(Multiple Choice)
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(Appendix 4A)Koszyk 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, P85G and C43S, about which it has provided the following data:
The company's estimated total manufacturing overhead for the year is $2, 264, 000 and the company's estimated total direct labor-hours for the year is 40, 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:
The manufacturing overhead that would be applied to a unit of product P85G under the company's traditional costing system is closest to:



(Multiple Choice)
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(Appendix 4A)Guinta 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, O48C and G94Z, about which it has provided the following data:
The company's estimated total manufacturing overhead for the year is $1, 102, 500 and the company's estimated total direct labor-hours for the year is 42, 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:
Required:
a.Determine the unit product cost of each of the company's two products under the traditional costing system.
b.Determine the unit product cost of each of the company's two products under activity-based costing system.



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(Appendix 4A)Delaware 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, W36M and U45D, about which it has provided the following data:
The company's estimated total manufacturing overhead for the year is $1, 746, 000 and the company's estimated total direct labor-hours for the year is 30, 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:
Required:
a.Determine the manufacturing overhead cost per unit of each of the company's two products under the traditional costing system.
b.Determine the manufacturing overhead cost per unit of each of the company's two products under activity-based costing system.



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(Appendix 4A)Hoffhines 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, E00X and E71U, about which it has provided the following data:
The company's estimated total manufacturing overhead for the year is $1, 021, 200 and the company's estimated total direct labor-hours for the year is 20, 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:
Required:
a.Determine the manufacturing overhead cost per unit of each of the company's two products under the traditional costing system.
b.Determine the manufacturing overhead cost per unit of each of the company's two products under activity-based costing system.



(Essay)
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(Appendix 4A)Binegar 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, R58G and R09O, about which it has provided the following data:
The company's estimated total manufacturing overhead for the year is $1, 617, 600 and the company's estimated total direct labor-hours for the year is 24, 000. The company is considering using a form of activity-based costing to determine its unit product costs for external reports.Data for this proposed activity-based costing system appear below:
The manufacturing overhead that would be applied to a unit of product R09O under the activity-based costing system is closest to:



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