Question 1

How much overhead cost is allocated to the Processing activity cost pool under activity-based costing in the first stage of allocation?

Accepted Answer

A) $10,600 
B) $21,000 
C) $21,600 
D) $600 
A) $10,600 
B) $21,000 
C) $21,600 
D) $600

Question 2

The plant manager's salary 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 3

The first-stage allocation in activity-based costing is the process by which overhead costs are assigned to activity cost pools.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) $6.00 
B) $6.60 
C) $7.20 
D) $6.80 
A) $6.00 
B) $6.60 
C) $7.20 
D) $6.80

Question 5

What is the overhead cost assigned to Product A8 under activity-based costing?

Accepted Answer

A) $3,720 
B) $3,975 
C) $26,000 
D) $7,695 
A) $3,720 
B) $3,975 
C) $26,000 
D) $7,695

Question 6

How much supervisory wages and salaries and factory supplies cost would be assigned to the Batch Processing activity cost pool?

Accepted Answer

A) $231,000 
B) $420,000 
C) $840,000 
D) $147,000 
A) $231,000 
B) $420,000 
C) $840,000 
D) $147,000

Question 7

Moyle Corporation has provided the following data from its activity-based costing accounting system:   The activity rate for the "designing products" activity cost pool is closest to:

Accepted Answer

A) $396,900 per product design hour 
B) $62 per product design hour 
C) $162 per product design hour 
D) $52 per product design hour 
A) $396,900 per product design hour 
B) $62 per product design hour 
C) $162 per product design hour 
D) $52 per product design hour

Question 8

Grandolfo 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) $168,000 
B) $182,000 
C) $128,000 
D) $192,000 
A) $168,000 
B) $182,000 
C) $128,000 
D) $192,000

Question 9

Hochberg Corporation uses an activity-based costing system with the following three activity cost pools:   The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. The company has provided the following data concerning its costs:   The distribution of resource consumption across activity cost pools is given below:   The activity rate for the Fabrication activity cost pool is closest to:

Accepted Answer

A) $5.30 per machine-hour 
B) $3.60 per machine-hour 
C) $7.20 per machine-hour 
D) $4.80 per machine-hour 
A) $5.30 per machine-hour 
B) $3.60 per machine-hour 
C) $7.20 per machine-hour 
D) $4.80 per machine-hour

Question 10

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

Accepted Answer

A) $2.60 per MH 
B) $1.23 per MH 
C) $0.60 per MH 
D) $1.24 per MH 
A) $2.60 per MH 
B) $1.23 per MH 
C) $0.60 per MH 
D) $1.24 per MH

Question 11

Batch-level activities are performed each time a unit is produced.

Accepted Answer

A) True 
 B)False

Question 12

What is the overhead cost assigned to Product R6 under activity-based costing?

Accepted Answer

A) $44,000 
B) $60,900 
C) $18,145 
D) $42,755 
A) $44,000 
B) $60,900 
C) $18,145 
D) $42,755

Question 13

Activity rates from Mcelderry Corporation's activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products:   Last year, Product Q06J involved 10 customer orders, 580 assembly hours, and 12 batches. How much overhead cost would be assigned to Product Q06J using the activity-based costing system?

Accepted Answer

A) $71.01 
B) $219.12 
C) $2,388.22 
D) $42,748.02 
A) $71.01 
B) $219.12 
C) $2,388.22 
D) $42,748.02

Question 14

The total amount of overhead cost allocated to Product X would be closest to:

Accepted Answer

A) $339,000 
B) $298,000 
C) $296,100 
D) $372,600 
A) $339,000 
B) $298,000 
C) $296,100 
D) $372,600

Question 15

Radakovich Corporation has provided the following data from its activity-based costing system:   The company makes 230 units of product F60N a year, requiring a total of 480 machine-hours, 50 orders, and 30 inspection-hours per year. The product's direct materials cost is $12.70 per unit and its direct labor cost is $45.93 per unit. The product sells for $126.60 per unit. According to the activity-based costing system, the product margin for product F60N is:

Accepted Answer

A) $6,251.70 
B) $4,490.70 
C) $6,393.70 
D) $15,633.10 
A) $6,251.70 
B) $4,490.70 
C) $6,393.70 
D) $15,633.10

Question 16

How much overhead cost is allocated to the Machining activity cost pool under activity-based costing in the first stage of allocation?

Accepted Answer

A) $32,000 
B) $16,000 
C) $400 
D) $32,400 
A) $32,000 
B) $16,000 
C) $400 
D) $32,400

Question 17

Duerr 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) $250,000 
B) $286,000 
C) $156,000 
D) $312,000 
A) $250,000 
B) $286,000 
C) $156,000 
D) $312,000

Question 18

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

Accepted Answer

A) $30.40 per order 
B) $100.00 per order 
C) $4.00 per order 
D) $20.00 per order 
A) $30.40 per order 
B) $100.00 per order 
C) $4.00 per order 
D) $20.00 per order

Question 19

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

Accepted Answer

A) $13.00 per batch 
B) $69.00 per batch 
C) $8.00 per batch 
D) $11.43 per batch 
A) $13.00 per batch 
B) $69.00 per batch 
C) $8.00 per batch 
D) $11.43 per batch

Question 20

Benoist 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 $17,200 for the Machining cost pool, $7,700 for the Setting Up cost pool, and $52,100 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 and the company's costs 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.
c. Determine the product margins for each product using activity-based costing.

Accepted Answer

a. Computation of activity rat

How much overhead cost is allocated to the Processing activity cost pool under activity-based costing in the first stage of allocation?

The plant manager's salary is an example of a:

The first-stage allocation in activity-based costing is the process by which overhead costs are assigned to activity cost pools.

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

What is the overhead cost assigned to Product A8 under activity-based costing?

How much supervisory wages and salaries and factory supplies cost would be assigned to the Batch Processing activity cost pool?

Moyle Corporation has provided the following data from its activity-based costing accounting system: The activity rate for the "designing products" activity cost pool is closest to:

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

Batch-level activities are performed each time a unit is produced.

What is the overhead cost assigned to Product R6 under activity-based costing?

The total amount of overhead cost allocated to Product X would be closest to:

How much overhead cost is allocated to the Machining activity cost pool under activity-based costing in the first stage of allocation?

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

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

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

How much overhead cost is allocated to the Processing activity cost pool under activity-based costing in the first stage of allocation?

The plant manager's salary is an example of a:

The first-stage allocation in activity-based costing is the process by which overhead costs are assigned to activity cost pools.

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

What is the overhead cost assigned to Product A8 under activity-based costing?

How much supervisory wages and salaries and factory supplies cost would be assigned to the Batch Processing activity cost pool?

Moyle Corporation has provided the following data from its activity-based costing accounting system: The activity rate for the "designing products" activity cost pool is closest to:

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

Batch-level activities are performed each time a unit is produced.

What is the overhead cost assigned to Product R6 under activity-based costing?

The total amount of overhead cost allocated to Product X would be closest to:

How much overhead cost is allocated to the Machining activity cost pool under activity-based costing in the first stage of allocation?

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

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

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