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

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 <underLine>D.</underLine> $1,350 per order Total Order Processing Cost: -Laib 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 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 <underLine>D.</underLine> $1,350 per order Total Order Processing Cost: -Viren Corporation has provided the following data from its activity-based costing system: The company makes 240 units of product T91H a year,requiring a total of 550 machine-hours,90 orders,and 40 inspection-hours per year.The product's direct materials cost is $16.98 per unit and its direct labor cost is $12.09 per unit.According to the activity-based costing system,the average cost of product T91H is closest to:

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 <underLine>D.</underLine> $1,350 per order Total Order Processing Cost: -Activity rates from Hample Corporation's activity-based costing system are listed below.The company uses the activity rates to assign overhead costs to products: Last year,Product J27W involved 30 customer orders,152 assembly hours,and 54 batches.How much overhead cost would be assigned to Product J27W using the activity-based costing system?

Sailer Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Last year,Product J34U involved 48 batches,22 customer orders,and 395 assembly hours. Required: How much overhead cost would be assigned to Product J34U using the company's activity-based costing system? Show your work!

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

The clerical activity associated with processing purchase orders to produce an order for a standard product is an example of a(n):

Fordham Florist specializes in large floral bouquets for hotels and other commercial spaces.The company has provided the following data concerning its annual overhead costs and its activity based costing system: The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. The amount of activity for the year is as follows: -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. )

Activity-based costing uses a number of activity cost pools,each of which is allocated to products on the basis of direct labor-hours.

In activity-based costing,a plantwide overhead rate is used to apply overhead to products.

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 <underLine>D.</underLine> $1,350 per order Total Order Processing Cost: -Graney 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?

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 NOT be assigned to products using the activity-based costing system?

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 <underLine>D.</underLine> $1,350 per order Total Order Processing Cost: -Trauscht Corporation has provided the following data from its activity-based costing system: The company makes 340 units of product P23F a year,requiring a total of 710 machine-hours,80 orders,and 40 inspection-hours per year.The product's direct materials cost is $40.05 per unit and its direct labor cost is $14.35 per unit.The product sells for $121.90 per unit. According to the activity-based costing system,the product margin for product P23F is:

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 direct labor-hours,how much of the total materials handling cost would be allocated to the wall mirrors? (Round off your answer to the nearest whole dollar. )

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 <underLine>D.</underLine> $1,350 per order Total Order Processing Cost: -Whiting Corporation has provided the following data concerning its overhead costs for the coming year: The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year: The Other activity cost pool does not have a measure of activity;it is used to accumulate costs of idle capacity and organization-sustaining costs. The distribution of resource consumption across activity cost pools is given below: The activity rate for the Assembly activity cost pool is closest to:

Finkel & Robbins PLC,a consulting firm,uses an activity-based costing in which there are three activity cost pools.The company has provided the following data concerning its costs and its activity based costing system: Required: a.How much cost,in total,would be allocated to the Working On Engagements activity cost pool? b.How much cost,in total,would be allocated to the Business Development activity cost pool? c.How much cost,in total,would be allocated to the Other activity cost pool?

Overhead allocation based solely on a measure of volume such as direct labor-hours:

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

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 <underLine>D.</underLine> $1,350 per order Total Order Processing Cost: -Vanfleet 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 Fabricating activity cost pool?

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 <underLine>D.</underLine> $1,350 per order Total Order Processing Cost: -Kraska Corporation has provided the following data from its activity-based costing system: Data concerning one of the company's products,Product O11W,appear below: According to the activity-based costing system,the product margin for product O11W is:

When combining activities in an activity-based costing system,activities should be grouped together at the same level.For example,batch-level activities should not be combined with unit-level activities.