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

What would be the total overhead cost per bouquet according to the activity based costing system? In other words, what would be the overall activity rate for the making bouquets activity cost pool? (Round to the nearest whole cent.)

The activity rate under the activity-based costing system for Activity 2 is closest to:

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

Malan 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!

When a company shifts from a traditional cost system in which manufacturing overhead is applied based on direct labor-hours to an activity-based costing system with batch-level and product-level costs, the unit product costs of low volume products typically decrease whereas the unit product costs of high volume products typically increase.

How much cost, in total, would be allocated in the first-stage allocation to the Customer Support activity cost pool?

Lindsey Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 5,000 units and of Product B is 2,000 units. There are three activity cost pools, with total cost and activity as follows: The activity-based costing cost per unit of Product A is closest to:

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

Schulenburg Corporation has provided the following data 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 indirect factory wages and factory equipment depreciation costs that would be allocated to the Product Processing activity cost pool. Show your work! b. Determine the total amount of indirect factory wages and factory equipment depreciation costs that would NOT be assigned to products. Show your work!

Grammer 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 Other activity cost pool?

The activity rate for Activity 2 is closest to:

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

What is the product margin for Product C4 under activity-based costing?

Assuming that the company charges $584.18 for the Strobl wedding cake, what would be the overall margin on the order?

Deraney Corporation has an activity-based costing system with three activity cost pools-Machining, Setting Up, and Other. The company's overhead costs have already been allocated to the cost pools and total $5,800 for the Machining cost pool, $4,700 for the Setting Up cost pool, and $7,500 for the Other cost pool. 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. Data concerning the two products appear 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.

What is the overhead cost assigned to Product S4 under activity-based costing?

Activity-based costing uses a number of activity cost pools, each of which may have a different allocation base.

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

In traditional costing, some manufacturing costs may be excluded from product costs.

Loader 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 $88,000 and indirect labor totals $1,000. 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.