Deck 5: Activity-Based-Costing: a Tool to Aid Decision Making

Question 1

In activity-based costing,some manufacturing costs can be excluded from product costs.

Answer 1

True

Question 2

Product-level activities relate to how many batches are run or units of product are made.

Answer 2

False

Question 3

In activity-based costing,organization-sustaining costs should be included in product costs for internal management reports that are used for decision-making.

Answer 3

False

Question 4

Organization-sustaining overhead costs should be allocated to products just like unit-level and product-level activities.

Question 5

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

Question 6

Activity-based costing is a costing method that is designed to provide managers with cost information for strategic and other decisions that potentially affect only variable costs.

Question 7

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

Question 8

In general,duration drivers are more accurate measures of the consumption of resources than transaction drivers.

Question 9

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

Question 10

Activity-based costing involves a two-stage allocation in which overhead costs are first assigned to departments and then to jobs.

Question 11

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

Question 12

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

Question 13

In activity-based costing,nonmanufacturing costs are not assigned to products.

Question 14

The costs of activities that are classified as unit-level should be fixed respect to the number of units produced.

Question 15

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

Question 16

Activity-based management seeks to eliminate waste by allocating costs to products that waste resources.

Question 17

The costs of idle capacity should be assigned to products in activity-based costing.

Question 18

In traditional costing systems,manufacturing costs that are not caused by products are not assigned to products.

Question 19

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

Question 20

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.

Question 21

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?

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

Question 22

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?

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

Question 23

Ginger 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?

A)$528,000
B)$454,000
C)$418,000
D)$396,000

Question 24

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:

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 25

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

A)Unit-level activity.
B)Batch-level activity.
C)Product-level activity.
D)Organization-sustaining activity.

Question 26

Assembling a product is an example of a(n):

A)Unit-level activity.
B)Batch-level activity.
C)Product-level activity.
D)Organization-sustaining.

Question 27

Which of the following would probably be the most accurate measure of activity to use for allocating the costs associated with a factory's purchasing department?

A)Machine-hours
B)Direct labor-hours
C)Number of orders processed
D)Cost of materials purchased

Question 28

Which of the following costs should not be included in product costs for internal management reports that are used for decision-making?

A)Costs of unit-level activities.
B)Costs of batch-level activities.
C)Costs of product-level activities.
D)Costs of organization-sustaining activities.

Question 29

Which of the following levels of costs should not be allocated to products for decision-making purposes?

A)Unit-level activities.
B)Batch-level activities.
C)Product-level activities.
D)Organization-sustaining activities.

Question 30

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?

A)$135,000
B)$174,000
C)$162,000
D)$180,000

Question 31

Activity rates are computed in the second-stage allocation in activity-based costing.

Question 32

Which terms would make the following sentence true? Manufacturing companies that benefit the most from activity-based costing are those where overhead costs are a _________ percentage of total product cost and where there is ___________ diversity among the various products that they produce.

A)low,little
B)low,considerable
C)high,little
D)high,considerable

Question 33

If substantial batch-level or product-level costs exist,then overhead allocation based on a measure of volume such as direct labor-hours alone:

A)is a key aspect of the activity-based costing model.
B)will systematically overcost high-volume products and undercost low-volume products.
C)will systematically overcost low-volume products and undercost high-volume products.
D)must be used for external financial reporting since activity-based costing cannot be used for external reporting purposes.

Question 34

An activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting principles because:

A)under activity-based costing the sum of all product costs does not equal the total costs of the company.
B)under activity-based costing manufacturing costs are assigned to products.
C)activity-based costing has not been approved by the United Nation's International Accounting Board.
D)activity-based costing results in less accurate costs than more traditional costing methods based on direct labor-hours or machine-hours.

Question 35

Activity rates in activity-based costing are computed by dividing costs from the second-stage allocations by the activity measure for each activity cost pool.

Question 36

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?

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

Question 37

Orzel 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:

A)$2.70 per labor-hour
B)$9.00 per labor-hour
C)$9.90 per labor-hour
D)$16.20 per labor-hour

Question 38

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

A)Unit-level activity.
B)Batch-level activity.
C)Product-level activity.
D)Organization-sustaining activity.

Question 39

The labor time required to assemble a product is an example of a(n):

A)Unit-level activity.
B)Batch-level activity.
C)Product-level activity.
D)Organization-sustaining activity.

Question 40

Futter 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?

A)$84,000
B)$300,000
C)$238,000
D)$462,000

Question 41

Dideda 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: 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?

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

Question 42

Dideda 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: 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 Order Size activity cost pool?

A)$150,000
B)$360,000
C)$255,000
D)$234,000

Question 43

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?

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

Question 44

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:

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

Question 45

Hettich 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 Order Processing activity cost pool is closest to:

A)$1,400 per order
B)$1,600 per order
C)$1,150 per order
D)$800 per order

Question 46

The following data have been provided by Graise 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. How much factory supervision and indirect factory labor cost would NOT be assigned to products using the activity-based costing system?

A)$0
B)$62,000
C)$160,000
D)$300,000

Question 47

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

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

Question 48

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:

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 49

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

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

Question 50

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?

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

Question 51

The following data have been provided by Graise 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. How much factory supervision and indirect factory labor cost would be assigned to the Batch Set-Up activity cost pool?

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

Question 52

Dideda 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: 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?

A)$255,000
B)$282,000
C)$120,000
D)$390,000

Question 53

Belsky Corporation has provided the following data from its activity-based costing system: The company makes 490 units of product Q19S a year,requiring a total of 1,080 machine-hours,60 orders,and 20 inspection-hours per year.The product's direct materials cost is $46.42 per unit and its direct labor cost is $20.22 per unit. According to the activity-based costing system,the average cost of product Q19S is closest to:

A)$97.64 per unit
B)$66.64 per unit
C)$93.31 per unit
D)$94.79 per unit

Question 54

Ort 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. How much indirect factory wages and factory equipment depreciation cost would be assigned to the Customer Orders activity cost pool?

A)$236,000
B)$184,000
C)$230,000
D)$460,000

Question 55

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

A)$56,000
B)$100,000
C)$360,000
D)$0

Question 56

Data concerning three of the activity cost pools of Brevo LLC,a legal firm,have been provided below: The activity rate for the "meeting with clients" activity cost pool is closest to:

A)$147 per meeting hour
B)$154,791 per meeting hour
C)$37 per meeting hour
D)$68 per meeting hour

Question 57

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:

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

Question 58

Bera Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Data for one of the company's products follow: How much overhead cost would be assigned to Product Q79P using the activity-based costing system?

A)$7,119.92
B)$43,659.54
C)$4,770.99
D)$125.82

Question 59

Ravelo Corporation has provided the following data from its activity-based costing system: Data concerning the company's product L19B appear below: According to the activity-based costing system,the average cost of product L19B is closest to:

A)$48.19 per unit
B)$82.31 per unit
C)$85.56 per unit
D)$77.53 per unit

Question 60

Laguna 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 Order Processing activity cost pool is closest to:

A)$415 per order
B)$405 per order
C)$495 per order
D)$270 per order

Question 61

Studler Corporation has an activity-based costing system with three activity cost pools-Processing,Supervising,and Other.In the first stage allocations,costs in the two overhead accounts,equipment expense and indirect labor,are allocated to the three activity cost pools based on resource consumption.Data used in the first stage allocations follow: Processing costs are assigned to products using machine-hours (MHs)and Supervising costs are assigned to products using the number of batches.The costs in the Other activity cost pool are not assigned to products.Activity data for the company's two products follow: The activity rate for the Supervising activity cost pool under activity-based costing is closest to:

A)$2.50 per batch
B)$2.63 per batch
C)$9.55 per batch
D)$44.00 per batch

Question 62

Lake Corporation has an activity-based costing system with three activity cost pools-Processing,Supervising,and Other.In the first stage allocations,costs in the two overhead accounts,equipment expense and indirect labor,are allocated to the three activity cost pools based on resource consumption.Data used in the first stage allocations follow: Processing costs are assigned to products using machine-hours (MHs)and Supervising costs are assigned to products using the number of batches.The costs in the Other activity cost pool are not assigned to products.Activity data for the company's two products follow: Finally,the costs of Processing and Supervising are combined with the following sales and direct cost data to determine product margins. How much overhead cost is allocated to the Supervising activity cost pool under activity-based costing?

A)$19,200
B)$2,000
C)$39,200
D)$21,200

Question 63

Manton Corporation uses an activity based costing system to assign overhead costs to products.In the first stage,two overhead costs-equipment expense and indirect labor-are allocated to the three activity cost pools-Processing,Supervising,and Other-based on resource consumption.Data to perform these allocations appear below: In the second stage,Processing costs are assigned to products using machine-hours (MHs)and Supervising costs are assigned to products using the number of batches.The costs in the Other activity cost pool are not assigned to products.Activity data for the company's two products follow: The activity rate for the Processing activity cost pool under activity-based costing is closest to:

A)$2.16 per MH
B)$2.10 per MH
C)$4.10 per MH
D)$1.00 per MH

Question 64

Studler Corporation has an activity-based costing system with three activity cost pools-Processing,Supervising,and Other.In the first stage allocations,costs in the two overhead accounts,equipment expense and indirect labor,are allocated to the three activity cost pools based on resource consumption.Data used in the first stage allocations follow: Processing costs are assigned to products using machine-hours (MHs)and Supervising costs are assigned to products using the number of batches.The costs in the Other activity cost pool are not assigned to products.Activity data for the company's two products follow: What is the overhead cost assigned to Product R6 under activity-based costing?

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

Question 65

Mussenden Corporation has an activity-based costing system with three activity cost pools-Machining,Order Filling,and Other.In the first stage allocations,costs in the two overhead accounts,equipment depreciation and supervisory expense,are allocated to three activity cost pools based on resource consumption.Data used in the first stage allocations follow: Machining costs are assigned to products using machine-hours (MHs)and Order Filling costs are assigned to products using the number of orders.The costs in the Other activity cost pool are not assigned to products.Activity data for the company's two products follow: The activity rate for the Order Filling activity cost pool under activity-based costing is closest to:

A)$2.86 per order
B)$49.00 per order
C)$5.10 per order
D)$2.00 per order

Question 66

Vontungeln Corporation uses activity-based costing to compute product margins.In the first stage,the activity-based costing system allocates two overhead accounts-equipment depreciation and supervisory expense-to three activity cost pools-Machining,Order Filling,and Other-based on resource consumption.Data to perform these allocations appear below: In the second stage,Machining costs are assigned to products using machine-hours (MHs)and Order Filling costs are assigned to products using the number of orders.The costs in the Other activity cost pool are not assigned to products. Finally,sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. What is the overhead cost assigned to Product I6 under activity-based costing?

A)$11,760
B)$24,072
C)$34,000
D)$12,312

Question 67

Forse 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. )

A)$0.90
B)$1.05
C)$1.20
D)$1.10

Question 68

Betterton Corporation uses an activity based costing system to assign overhead costs to products.In the first stage,two overhead costs-equipment depreciation and supervisory expense-are allocated to three activity cost pools-Machining,Order Filling,and Other-based on resource consumption.Data to perform these allocations appear below: In the second stage,Machining costs are assigned to products using machine-hours (MHs)and Order Filling costs are assigned to products using the number of orders.The costs in the Other activity cost pool are not assigned to products.Activity data for the company's two products follow: How much overhead cost is allocated to the Machining activity cost pool under activity-based costing in the first stage of allocation?

A)$300
B)$11,300
C)$24,500
D)$24,800

Question 69

Forse 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 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. )

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

Question 70

Manton Corporation uses an activity based costing system to assign overhead costs to products.In the first stage,two overhead costs-equipment expense and indirect labor-are allocated to the three activity cost pools-Processing,Supervising,and Other-based on resource consumption.Data to perform these allocations appear below: In the second stage,Processing costs are assigned to products using machine-hours (MHs)and Supervising costs are assigned to products using the number of batches.The costs in the Other activity cost pool are not assigned to products.Activity data for the company's two products follow: How much overhead cost is allocated to the Processing activity cost pool under activity-based costing in the first stage of allocation?

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

Question 71

Vontungeln Corporation uses activity-based costing to compute product margins.In the first stage,the activity-based costing system allocates two overhead accounts-equipment depreciation and supervisory expense-to three activity cost pools-Machining,Order Filling,and Other-based on resource consumption.Data to perform these allocations appear below: In the second stage,Machining costs are assigned to products using machine-hours (MHs)and Order Filling costs are assigned to products using the number of orders.The costs in the Other activity cost pool are not assigned to products. Finally,sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. The activity rate for the Machining activity cost pool under activity-based costing is closest to:

A)$1.60 per MH
B)$1.62 per MH
C)$0.67 per MH
D)$3.40 per MH

Question 72

Vontungeln Corporation uses activity-based costing to compute product margins.In the first stage,the activity-based costing system allocates two overhead accounts-equipment depreciation and supervisory expense-to three activity cost pools-Machining,Order Filling,and Other-based on resource consumption.Data to perform these allocations appear below: In the second stage,Machining costs are assigned to products using machine-hours (MHs)and Order Filling costs are assigned to products using the number of orders.The costs in the Other activity cost pool are not assigned to products. Finally,sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. What is the product margin for Product I6 under activity-based costing?

A)$2,000
B)$36,000
C)$11,928
D)$23,688

Question 73

Vontungeln Corporation uses activity-based costing to compute product margins.In the first stage,the activity-based costing system allocates two overhead accounts-equipment depreciation and supervisory expense-to three activity cost pools-Machining,Order Filling,and Other-based on resource consumption.Data to perform these allocations appear below: In the second stage,Machining costs are assigned to products using machine-hours (MHs)and Order Filling costs are assigned to products using the number of orders.The costs in the Other activity cost pool are not assigned to products. Finally,sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. How much overhead cost is allocated to the Machining activity cost pool under activity-based costing in the first stage of allocation?

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

Question 74

Mussenden Corporation has an activity-based costing system with three activity cost pools-Machining,Order Filling,and Other.In the first stage allocations,costs in the two overhead accounts,equipment depreciation and supervisory expense,are allocated to three activity cost pools based on resource consumption.Data used in the first stage allocations follow: Machining costs are assigned to products using machine-hours (MHs)and Order Filling costs are assigned to products using the number of orders.The costs in the Other activity cost pool are not assigned to products.Activity data for the company's two products follow: How much overhead cost is allocated to the Order Filling activity cost pool under activity-based costing?

A)$400
B)$4,700
C)$14,700
D)$5,100

Question 75

Manton Corporation uses an activity based costing system to assign overhead costs to products.In the first stage,two overhead costs-equipment expense and indirect labor-are allocated to the three activity cost pools-Processing,Supervising,and Other-based on resource consumption.Data to perform these allocations appear below: In the second stage,Processing costs are assigned to products using machine-hours (MHs)and Supervising costs are assigned to products using the number of batches.The costs in the Other activity cost pool are not assigned to products.Activity data for the company's two products follow: What is the overhead cost assigned to Product Z5 under activity-based costing?

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

Question 76

Betterton Corporation uses an activity based costing system to assign overhead costs to products.In the first stage,two overhead costs-equipment depreciation and supervisory expense-are allocated to three activity cost pools-Machining,Order Filling,and Other-based on resource consumption.Data to perform these allocations appear below: In the second stage,Machining costs are assigned to products using machine-hours (MHs)and Order Filling costs are assigned to products using the number of orders.The costs in the Other activity cost pool are not assigned to products.Activity data for the company's two products follow: The activity rate for the Machining activity cost pool under activity-based costing is closest to:

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

Question 77

Studler Corporation has an activity-based costing system with three activity cost pools-Processing,Supervising,and Other.In the first stage allocations,costs in the two overhead accounts,equipment expense and indirect labor,are allocated to the three activity cost pools based on resource consumption.Data used in the first stage allocations follow: Processing costs are assigned to products using machine-hours (MHs)and Supervising costs are assigned to products using the number of batches.The costs in the Other activity cost pool are not assigned to products.Activity data for the company's two products follow: How much overhead cost is allocated to the Supervising activity cost pool under activity-based costing?

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

Question 78

Lake Corporation has an activity-based costing system with three activity cost pools-Processing,Supervising,and Other.In the first stage allocations,costs in the two overhead accounts,equipment expense and indirect labor,are allocated to the three activity cost pools based on resource consumption.Data used in the first stage allocations follow: Processing costs are assigned to products using machine-hours (MHs)and Supervising costs are assigned to products using the number of batches.The costs in the Other activity cost pool are not assigned to products.Activity data for the company's two products follow: Finally,the costs of Processing and Supervising are combined with the following sales and direct cost data to determine product margins. The activity rate for the Supervising activity cost pool under activity-based costing is closest to:

A)$6.67 per batch
B)$4.00 per batch
C)$21.20 per batch
D)$100.00 per batch

Question 79

Mussenden Corporation has an activity-based costing system with three activity cost pools-Machining,Order Filling,and Other.In the first stage allocations,costs in the two overhead accounts,equipment depreciation and supervisory expense,are allocated to three activity cost pools based on resource consumption.Data used in the first stage allocations follow: Machining costs are assigned to products using machine-hours (MHs)and Order Filling costs are assigned to products using the number of orders.The costs in the Other activity cost pool are not assigned to products.Activity data for the company's two products follow: What is the overhead cost assigned to Product S4 under activity-based costing?

A)$18,688
B)$3,570
C)$24,500
D)$22,258

Question 80

Betterton Corporation uses an activity based costing system to assign overhead costs to products.In the first stage,two overhead costs-equipment depreciation and supervisory expense-are allocated to three activity cost pools-Machining,Order Filling,and Other-based on resource consumption.Data to perform these allocations appear below: In the second stage,Machining costs are assigned to products using machine-hours (MHs)and Order Filling costs are assigned to products using the number of orders.The costs in the Other activity cost pool are not assigned to products.Activity data for the company's two products follow: What is the overhead cost assigned to Product A8 under activity-based costing?

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