Question 1

Purchase order processing is an example of a(n):

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. B

Question 2

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 Order Processing activity cost pool is closest to: A.$1,050 per order B.$1,680 per order C.$1,190 per order D. $1,350 per order Total Order Processing Cost: -Marton 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) $124 per product design hour 
B) $181 per product design hour 
C) $55 per product design hour 
D) $1,526,916 per product design hour 
A) $124 per product design hour 
B) $181 per product design hour 
C) $55 per product design hour 
D) $1,526,916 per product design hour B

Question 3

The following data have been provided by Letze Corporation from its activity-based costing accounting system:   The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products.
-How much factory supervision and indirect factory labor cost would be assigned to the Batch Set-Up activity cost pool?

Accepted Answer

A) $680,000 
B) $385,000 
C) $391,000 
D) $340,000 
A) $680,000 
B) $385,000 
C) $391,000 
D) $340,000 B

Question 4

Lifsey Wedding Fantasy Company makes very elaborate wedding cakes to order.The owner of the company has provided the following data concerning the activity rates in its activity-based costing system:   The measure of activity for the size-related activity cost pool is the number of planned guests at the wedding reception.The greater the number of guests,the larger the cake.The measure of complexity is the number of tiers in the cake.The activity measure for the order-related cost pool is the number of orders.(Each wedding involves one order. ) The activity rates include the costs of raw ingredients such as flour,sugar,eggs,and shortening.The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells,which are accounted for separately.
Data concerning two recent orders appear below:  
-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 costs of all cakes would go up. 
C) The cost of cakes for receptions with fewer than the average number of guests would go down. 
D) The costs of all cakes would go down. 
A) The cost of cakes for receptions with more than the average number of guests would go down. 
B) The costs of all cakes would go up. 
C) The cost of cakes for receptions with fewer than the average number of guests would go down. 
D) The costs of all cakes would go down.

Question 5

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 Order Processing activity cost pool is closest to: A.$1,050 per order B.$1,680 per order C.$1,190 per order D. $1,350 per order Total Order Processing Cost: -Kassabian 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) $314,000 
B) $272,333 
C) $215,000 
D) $430,000 
A) $314,000 
B) $272,333 
C) $215,000 
D) $430,000

Question 6

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: A.$3.72 per machine-hour B. $4.44 per machine-hour C.$7.44 per machine-hour D.$1.24 per machine-hour Total Fabrication Cost: -Lippincott Corporation uses an activity-based costing system with the following three activity cost pools:

Accepted Answer

The answer of The Other activity cost pool is used...

Question 7

The controller of Hallowell Company estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data that are given below:   The total materials handling cost for the year is expected to be $18,257.40.
-If the materials handling cost is allocated on the basis of material moves,how much of the total materials handling cost would be allocated to the specialty windows? (Round off your answer to the nearest whole dollar. )

Accepted Answer

A) $9,129 
B) $6,639 
C) $14,296 
D) $15,649 
A) $9,129 
B) $6,639 
C) $14,296 
D) $15,649

Question 8

Ternasky Corporation has provided the following data from its activity-based costing accounting system:   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!

Accepted Answer

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

Question 9

Setting up equipment is an example of a(n):

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 10

Dilloo Company 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:
Costs:   The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs.
You have been asked to complete the first-stage allocation of costs to the activity cost pools.
-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) $80,000 
B) $132,000 
C) $0 
D) $66,000 
A) $80,000 
B) $132,000 
C) $0 
D) $66,000

Question 11

An action analysis report reconciles activity-based costing product costs with traditional product costs based on direct labor.

Accepted Answer

A) True 
 B)False

Question 12

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 Order Processing activity cost pool is closest to: A.$1,050 per order B.$1,680 per order C.$1,190 per order D. $1,350 per order Total Order Processing Cost: -Vodopich Corporation has provided the following data from its activity-based costing system: According to the activity-based costing system,the average cost of product P58Z is closest to:

Accepted Answer

A) $113.33 per unit 
B) $58.30 per unit 
C) $123.40 per unit 
D) $118.30 per unit 
A) $113.33 per unit 
B) $58.30 per unit 
C) $123.40 per unit 
D) $118.30 per unit

Question 13

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 Order Processing activity cost pool is closest to: A.$1,050 per order B.$1,680 per order C.$1,190 per order D. $1,350 per order Total Order Processing Cost: -Emmette 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 Setting Up activity cost pool?

Accepted Answer

A) $325,000 
B) $312,000 
C) $333,000 
D) $429,000 
A) $325,000 
B) $312,000 
C) $333,000 
D) $429,000

Question 14

Daniele Corporation uses an activity-based costing system with the following three activity cost pools:

Accepted Answer

The answer of Daniele Corporation uses an activity-based costing system...

Question 15

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 Order Processing activity cost pool is closest to: A.$1,050 per order B.$1,680 per order C.$1,190 per order D. $1,350 per order Total Order Processing Cost: -Data concerning three of the activity cost pools of Bramhall LLC,a legal firm,have been provided below: The activity rate for the "meeting with clients" activity cost pool is closest to:

Accepted Answer

A) $125 per meeting hour 
B) $65 per meeting hour 
C) $80 per meeting hour 
D) $665,500 per meeting hour 
A) $125 per meeting hour 
B) $65 per meeting hour 
C) $80 per meeting hour 
D) $665,500 per meeting hour

Question 16

Morsell Corporation has provided the following data from its activity-based costing accounting system:   The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products.
-How much supervisory wages and factory supplies cost would be assigned to the Batch Processing activity cost pool?

Accepted Answer

A) $286,000 
B) $520,000 
C) $284,000 
D) $260,000 
A) $286,000 
B) $520,000 
C) $284,000 
D) $260,000

Question 17

Aujla Corporation uses activity-based costing to determine product costs for external financial reports.The company has provided the following data concerning its activity-based costing system:  
-The activity rate for the batch setup activity cost pool is closest to:

Accepted Answer

A) $70.40 
B) $29.40 
C) $26.10 
D) $234.90 
A) $70.40 
B) $29.40 
C) $26.10 
D) $234.90

Question 18

Testing a prototype of a new product is an example of a(n):

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 19

The Coletti 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 Tubman family,requested 26 jobs during the year that required a total of 104 hours of housecleaning.For this service,the client was charged $1,420.
Required:
a.Using the activity-based costing system,compute the customer margin for the Tubman 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 Tubman family.Round off all calculations to the nearest whole cent.

Accepted Answer

The answer of The Coletti Cleaning Brigade Company provides housecleaning...

Question 20

Andracki Housecleaning 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 Lason family,requested 46 jobs during the year that required a total of 92 hours of housecleaning.For this service,the client was charged $2,230.
Required:
a.Compute the activity rates (i.e. ,cost per unit of activity) for the activity cost pools.Round off all calculations to the nearest whole cent.
b.Using the activity-based costing system,compute the customer margin for the Lason family.Round off all calculations to the nearest whole cent.
c.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 Lason family.Round off all calculations to the nearest whole cent.

Accepted Answer

The answer of Andracki Housecleaning provides housecleaning services to its...

Purchase order processing is an example of a(n):

Setting up equipment is an example of a(n):

An action analysis report reconciles activity-based costing product costs with traditional product costs based on direct labor.

Daniele Corporation uses an activity-based costing system with the following three activity cost pools:

Aujla Corporation uses activity-based costing to determine product costs for external financial reports.The company has provided the following data concerning its activity-based costing system: -The activity rate for the batch setup activity cost pool is closest to:

Testing a prototype of a new product is an example of a(n):

Managerial Accounting and the Business Environment

Managerial Accounting and Cost Concepts

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Variable Costing: a Tool for Management

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Operating Performance Measures

Segment Reporting,decentralization,and the Balanced Scorecard

Relevant Costs for Decision Making

Capital Budgeting Decisions

Pricing Products and Services

Profitability Analysis

Least-Squares Regression Computations

The Predetermined Overhead Rate and Capacity

Abc Action Analysis

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Transfer Pricing

Service Department Charges

The Concept of Present Value

Income Taxes in Capital Budgeting Decisions

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Exam 7: Activity-Based Costing: a Tool to Aid Decision Making

Purchase order processing is an example of a(n):

Setting up equipment is an example of a(n):

An action analysis report reconciles activity-based costing product costs with traditional product costs based on direct labor.

Daniele Corporation uses an activity-based costing system with the following three activity cost pools:

Aujla Corporation uses activity-based costing to determine product costs for external financial reports.The company has provided the following data concerning its activity-based costing system: -The activity rate for the batch setup activity cost pool is closest to:

Testing a prototype of a new product is an example of a(n):

Managerial Accounting and the Business Environment

Managerial Accounting and Cost Concepts

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Variable Costing: a Tool for Management

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Operating Performance Measures

Segment Reporting,decentralization,and the Balanced Scorecard

Relevant Costs for Decision Making

Capital Budgeting Decisions

Pricing Products and Services

Profitability Analysis

Least-Squares Regression Computations

The Predetermined Overhead Rate and Capacity

Abc Action Analysis

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Transfer Pricing

Service Department Charges

The Concept of Present Value

Income Taxes in Capital Budgeting Decisions

Filters