Question 1

Human resource management is an example of an activity at which of the following levels?

Accepted Answer

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

Question 2

The unit cost for Dept.F,using direct labour hours to assign overhead is?

Accepted Answer

$26.05.
[1,700 + 1,200 + 2,310]/200 = 26.05

Question 3

Flyer Corporation manufactures two products,Product A and ProductA.Product B is produced on an automated production line.
Overhead is currently assigned to the products on the basis of direct labour-hours.The company estimated it would incur a total of $396,000 in manufacturing overhead costs and produce 5,500 units of Product B and 22,000 units of Product A during the current year.Unit costs for materials and direct labour are:               A.Product B is the more complex of the two products,requiring three hours of direct labour time per unit to manufacture compared to one and one-half hours of direct labour time for ProductB.Product B is of fairly recent origin,having been developed as an attempt to enter a market closely related to that of Product

Accepted Answer

Required:
a.Compute the predetermined overhead rate under the current method of allocation and determine the unit product cost of each product for the current year.
b.The company's overhead costs can be attributed to four major activities.These activities and the amount of overhead cost attributable to each for the current year are given below:   
Using the data above and an activity-based costing approach,determine the unit product cost of each product for the current year.
a.The company expects to work 49,500 direct labour-hours during the current year,computed as follows:   
Using these hours as a base,the predetermined overhead using direct labour-hours would be:
Pred.ovhd.rate = $396,000 ÷ 49,500 DLHs = $8.00/DLH
Using this overhead rate,the unit product cost of each product would be:   
b.The overhead rates are computed as follows:   
The overhead cost attributable to each product is:   
Overhead cost per unit:
Product A:$159,400 ÷ 22,000 units = $7.2455/unit.
Product B:$236,600 ÷ 5,500 units = $43.0182/unit.
Using activity-based costing,the unit product cost of each product would be:

Question 4

The activity rate computed at the beginning of the year for the batch setup activity cost pool is closest to:

Accepted Answer

A)  $42.40. 
B)  $49.80. 
C)  $74.80. 
D)  $381.60. 
A)  $42.40. 
B)  $49.80. 
C)  $74.80. 
D)  $381.60.

Question 5

If total overapplied or underapplied overhead is closed to the Cost of Goods Sold account at the end of each year,the entry to Cost of Goods Sold would have been:

Accepted Answer

A)  $33,000 credit. 
B)  $33,000 debit. 
C)  $66,000 credit. 
D)  $66,000 debit. 
A)  $33,000 credit. 
B)  $33,000 debit. 
C)  $66,000 credit. 
D)  $66,000 debit.

Question 6

Daba Company manufactures two products,Product F and Product G.The company expects to produce and sell 1,400 units of Product F and 1,800 units of Product G during the current year.The company uses activity-based costing to compute unit product costs for external reports.Data relating to the company's three activity cost pools are given below for the current year:

Accepted Answer

@#IMG-DLM& 
Required:
Using the activity-based cos

Question 7

The activity rate for setting up equipment is?

Accepted Answer

$200 per s

Question 8

The total credits to the Manufacturing Overhead account during the year were closest to:

Accepted Answer

A)  $124,254. 
B)  $124,494. 
C)  $125,055. 
D)  $125,667. 
A)  $124,254. 
B)  $124,494. 
C)  $125,055. 
D)  $125,667.

Question 9

The activity rate for Activity 2 is closest to

Accepted Answer

A)  $10.25. 
B)  $16.77. 
C)  $24.91. 
D)  $26.36. 
A)  $10.25. 
B)  $16.77. 
C)  $24.91. 
D)  $26.36.

Question 10

The activity rate for the batch setup activity cost pool is closest to:

Accepted Answer

A)  $33.90. 
B)  $56.50. 
C)  $74.50. 
D)  $84.80. 
A)  $33.90. 
B)  $56.50. 
C)  $74.50. 
D)  $84.80.

Question 11

The credits to the Manufacturing Overhead control account during the year (prior to closing out the balance)would have totalled:

Accepted Answer

A)  $2,202,600. 
B)  $2,218,050. 
C)  $2,233,500. 
D)  $2,249,700. 
A)  $2,202,600. 
B)  $2,218,050. 
C)  $2,233,500. 
D)  $2,249,700.

Question 12

The amount of cost assigned to the receiving activity is?

Accepted Answer

$72,000.
Labour cost

Question 13

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

Accepted Answer

A)  unit-level activity. 
B)  batch-level activity. 
C)  product-level activity. 
D)  facility-level activity. 
A)  unit-level activity. 
B)  batch-level activity. 
C)  product-level activity. 
D)  facility-level activity.

Question 14

The activity rate for receiving is?

Accepted Answer

$.72 per p

Question 15

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

Accepted Answer

A)  $16.00. 
B)  $21.97. 
C)  $26.67. 
D)  $89.33. 
A)  $16.00. 
B)  $21.97. 
C)  $26.67. 
D)  $89.33.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Selena Company has two products: A andB.The company uses activity-based costing.The estimated total cost and expected activity for each of the company's three activity cost pools are as follows:   The activity rate under the activity-based costing system for Activity 3 is closest to:

Accepted Answer

A)  $18.53. 
B)  $21.67. 
C)  $46.33. 
D)  $65.00. 
A)  $18.53. 
B)  $21.67. 
C)  $46.33. 
D)  $65.00.

Question 18

The overhead cost per unit of Product B under the traditional costing system is closest to:

Accepted Answer

A)  $2.63. 
B)  $4.32. 
C)  $7.49. 
D)  $54.13. 
A)  $2.63. 
B)  $4.32. 
C)  $7.49. 
D)  $54.13.

Question 19

The debits to the Manufacturing Overhead control account during the year (prior to closing out the balance)would have totalled:

Accepted Answer

A)  $2,202,600. 
B)  $2,218,050. 
C)  $2,223,500. 
D)  $2,249,700. 
A)  $2,202,600. 
B)  $2,218,050. 
C)  $2,223,500. 
D)  $2,249,700.

Question 20

The debits to the Manufacturing Overhead control account during the year (prior to closing out the balance)would have totalled:

Accepted Answer

A)  $1,917,000. 
B)  $1,929,650. 
C)  $1,932,200. 
D)  $1,942,300. 
A)  $1,917,000. 
B)  $1,929,650. 
C)  $1,932,200. 
D)  $1,942,300.

Human resource management is an example of an activity at which of the following levels?

The unit cost for Dept.F,using direct labour hours to assign overhead is?

The activity rate computed at the beginning of the year for the batch setup activity cost pool is closest to:

If total overapplied or underapplied overhead is closed to the Cost of Goods Sold account at the end of each year,the entry to Cost of Goods Sold would have been:

The activity rate for setting up equipment is?

The total credits to the Manufacturing Overhead account during the year were closest to:

The activity rate for Activity 2 is closest to

The activity rate for the batch setup activity cost pool is closest to:

The credits to the Manufacturing Overhead control account during the year (prior to closing out the balance)would have totalled:

The amount of cost assigned to the receiving activity is?

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

The activity rate for receiving is?

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

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

Selena Company has two products: A andB.The company uses activity-based costing.The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: The activity rate under the activity-based costing system for Activity 3 is closest to:

The overhead cost per unit of Product B under the traditional costing system is closest to:

The debits to the Manufacturing Overhead control account during the year (prior to closing out the balance)would have totalled:

The debits to the Manufacturing Overhead control account during the year (prior to closing out the balance)would have totalled:

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Systems Design: Activity-Based Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Relevant Costs for Decision Making

Capital Budgeting Decisions

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

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Exam 6: Cost-Volume-Profit Relationships

Human resource management is an example of an activity at which of the following levels?

The unit cost for Dept.F,using direct labour hours to assign overhead is?

The activity rate computed at the beginning of the year for the batch setup activity cost pool is closest to:

If total overapplied or underapplied overhead is closed to the Cost of Goods Sold account at the end of each year,the entry to Cost of Goods Sold would have been:

The activity rate for setting up equipment is?

The total credits to the Manufacturing Overhead account during the year were closest to:

The activity rate for Activity 2 is closest to

The activity rate for the batch setup activity cost pool is closest to:

The credits to the Manufacturing Overhead control account during the year (prior to closing out the balance)would have totalled:

The amount of cost assigned to the receiving activity is?

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

The activity rate for receiving is?

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

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

Selena Company has two products: A andB.The company uses activity-based costing.The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: The activity rate under the activity-based costing system for Activity 3 is closest to:

The overhead cost per unit of Product B under the traditional costing system is closest to:

The debits to the Manufacturing Overhead control account during the year (prior to closing out the balance)would have totalled:

The debits to the Manufacturing Overhead control account during the year (prior to closing out the balance)would have totalled:

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Systems Design: Activity-Based Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Relevant Costs for Decision Making

Capital Budgeting Decisions

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

Filters