Question 1

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

Accepted Answer

A) $2.50 per MH 
B) $2.00 per MH 
C) $7.00 per MH 
D) $1.95 per MH 
A) $2.50 per MH 
B) $2.00 per MH 
C) $7.00 per MH 
D) $1.95 per MH B

Question 2

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

Accepted Answer

A) $2.00 per MH 
B) $0.18 per MH 
C) $0.24 per MH 
D) $1.00 per MH 
A) $2.00 per MH 
B) $0.18 per MH 
C) $0.24 per MH 
D) $1.00 per MH C

Question 3

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

Accepted Answer

A) $0 
B) $102,000 
C) $180,000 
D) $660,000 
A) $0 
B) $102,000 
C) $180,000 
D) $660,000 B

Question 4

Setting up a machine to change from producing one product to another 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 5

What is the overhead cost assigned to Product Z5 under activity-based costing?

Accepted Answer

A) $5,280 
B) $6,264 
C) $20,500 
D) $11,544 
A) $5,280 
B) $6,264 
C) $20,500 
D) $11,544

Question 6

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

Accepted Answer

A) $1.00 per order 
B) $1.11 per order 
C) $15.70 per order 
D) $27.00 per order 
A) $1.00 per order 
B) $1.11 per order 
C) $15.70 per order 
D) $27.00 per order

Question 7

The cost per unit of Product B is closest to:

Accepted Answer

A) $25.90 
B) $11.49 
C) $34.73 
D) $48.09 
A) $25.90 
B) $11.49 
C) $34.73 
D) $48.09

Question 8

The practice of assigning the costs of idle capacity to products results in more stable unit product costs.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) $8.00 per batch 
B) $26.67 per batch 
C) $46.80 per batch 
D) $82.00 per batch 
A) $8.00 per batch 
B) $26.67 per batch 
C) $46.80 per batch 
D) $82.00 per batch

Question 10

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

Accepted Answer

A) $18,600 
B) $16,600 
C) $19,100 
D) $2,500 
A) $18,600 
B) $16,600 
C) $19,100 
D) $2,500

Question 11

A transaction driver provides a measure of the amount of time required to perform an activity.

Accepted Answer

A) True 
 B)False

Question 12

Direct labor-hours or direct labor cost should not be used as a measure of activity in an activity-based costing system.

Accepted Answer

A) True 
 B)False

Question 13

What is the overhead cost assigned to Product K0 under activity-based costing?

Accepted Answer

A) $1,635 
B) $6,300 
C) $48,500 
D) $7,935 
A) $1,635 
B) $6,300 
C) $48,500 
D) $7,935

Question 14

Poskey 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 Assembly activity cost pool?

Accepted Answer

A) $187,000 
B) $264,000 
C) $217,000 
D) $165,000 
A) $187,000 
B) $264,000 
C) $217,000 
D) $165,000

Question 15

The following data have been provided by Kilmartin 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 16

How much factory supervision and indirect factory labor cost would be assigned to the Batch Set-Up activity cost pool?

Accepted Answer

A) $195,500 
B) $230,000 
C) $460,000 
D) $185,000 
A) $195,500 
B) $230,000 
C) $460,000 
D) $185,000

Question 17

Rosenbrook Corporation has provided the following data from its activity-based costing system:   Data concerning one of the company's products, Product H73N, appear below:   According to the activity-based costing system, the product margin for product H73N is:

Accepted Answer

A) $7,275.90 
B) $6,661.90 
C) $18,837.00 
D) $8,425.90 
A) $7,275.90 
B) $6,661.90 
C) $18,837.00 
D) $8,425.90

Question 18

How much cost, in total, should NOT be allocated to orders and products in the second stage of the allocation process if the activity-based costing system is used for internal decision-making?

Accepted Answer

A) $60,000 
B) $0 
C) $84,000 
D) $120,000 
A) $60,000 
B) $0 
C) $84,000 
D) $120,000

Question 19

Suppose that the company decides that the present activity-based costing system is too complex and that all costs (except for the costs of purchased decorations) should be allocated on the basis of the number of guests. In that event, what would you expect to happen to the costs of cakes?

Accepted Answer

A) The cost of cakes for receptions with more than the average number of guests would go down. 
B) The cost of cakes for receptions with fewer than the average number of guests would go down. 
C) The costs of all cakes would go down. 
D) The costs of all cakes would go up. 
A) The cost of cakes for receptions with more than the average number of guests would go down. 
B) The cost of cakes for receptions with fewer than the average number of guests would go down. 
C) The costs of all cakes would go down. 
D) The costs of all cakes would go up.

Question 20

Senff Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:   Data concerning two products appear below:   How much overhead cost would be assigned to Product V91Z using the activity-based costing system?

Accepted Answer

A) $113,774.55 
B) $132.45 
C) $3,195.50 
D) $14,751.04 
A) $113,774.55 
B) $132.45 
C) $3,195.50 
D) $14,751.04

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

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

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

Setting up a machine to change from producing one product to another is an example of a:

What is the overhead cost assigned to Product Z5 under activity-based costing?

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

The cost per unit of Product B is closest to:

The practice of assigning the costs of idle capacity to products results in more stable unit product costs.

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

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

A transaction driver provides a measure of the amount of time required to perform an activity.

Direct labor-hours or direct labor cost should not be used as a measure of activity in an activity-based costing system.

What is the overhead cost assigned to Product K0 under activity-based costing?

How much factory supervision and indirect factory labor cost would be assigned to the Batch Set-Up activity cost pool?

Rosenbrook Corporation has provided the following data from its activity-based costing system: Data concerning one of the company's products, Product H73N, appear below: According to the activity-based costing system, the product margin for product H73N is:

How much cost, in total, should NOT be allocated to orders and products in the second stage of the allocation process if the activity-based costing system is used for internal decision-making?

Suppose that the company decides that the present activity-based costing system is too complex and that all costs (except for the costs of purchased decorations) should be allocated on the basis of the number of guests. In that event, what would you expect to happen to the costs of cakes?

Senff Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Data concerning two products appear below: How much overhead cost would be assigned to Product V91Z using the activity-based costing system?

Managerial Accounting and Cost Concepts

Least-Squares Regression Computations

Cost of Quality

Job-Order Costing

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Process Costing

Fifo Method

Service Department Allocations

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Super-Variable Costing

Abc Action Analysis

Filters

Exam 13: Activity-Based Costing: a Tool to Aid Decision Making

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

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

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

Setting up a machine to change from producing one product to another is an example of a:

What is the overhead cost assigned to Product Z5 under activity-based costing?

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

The cost per unit of Product B is closest to:

The practice of assigning the costs of idle capacity to products results in more stable unit product costs.

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

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

A transaction driver provides a measure of the amount of time required to perform an activity.

Direct labor-hours or direct labor cost should not be used as a measure of activity in an activity-based costing system.

What is the overhead cost assigned to Product K0 under activity-based costing?

How much factory supervision and indirect factory labor cost would be assigned to the Batch Set-Up activity cost pool?

Rosenbrook Corporation has provided the following data from its activity-based costing system: Data concerning one of the company's products, Product H73N, appear below: According to the activity-based costing system, the product margin for product H73N is:

How much cost, in total, should NOT be allocated to orders and products in the second stage of the allocation process if the activity-based costing system is used for internal decision-making?

Suppose that the company decides that the present activity-based costing system is too complex and that all costs (except for the costs of purchased decorations) should be allocated on the basis of the number of guests. In that event, what would you expect to happen to the costs of cakes?

Senff Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Data concerning two products appear below: How much overhead cost would be assigned to Product V91Z using the activity-based costing system?

Managerial Accounting and Cost Concepts

Least-Squares Regression Computations

Cost of Quality

Job-Order Costing

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Process Costing

Fifo Method

Service Department Allocations

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Super-Variable Costing

Abc Action Analysis

Filters