Exam 8: Activity Based Costing: a Tool to Aid Decision-Making

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?

Stoudmire Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs: How much cost, in total, would be allocated in the first-stage allocation to the Order Processing activity cost pool?

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

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?

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?

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.)

Pauls 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 X60R using the activity-based costing system?

The following data have been provided by Walch 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. Required: a. Determine the total amount of supervisory wages and factory utilities costs that would be allocated to the Machining activity cost pool. Show your work! b. Determine the total amount of supervisory wages and factory utilities costs that would NOT be assigned to products. Show your work!

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?

Testing a prototype of a new product is an example of a:

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!

Kraska Corporation has provided the following data from its activity-based costing system: According to the activity-based costing system, the product margin for product O11W is:

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?

Lippincott 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:

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: 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?

Accola Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 1,100 units and of Product B is 700 units. There are three activity cost pools, with estimated costs and expected activity as follows: -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 modular homes? (Round off your answer to the nearest whole dollar.)

Rank the following methods of assigning overhead costs from least accurate to most accurate.

Accola Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 1,100 units and of Product B is 700 units. There are three activity cost pools, with estimated costs and expected activity as follows: -The activity rate for Activity 3 is closest to:

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:

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: -Assuming that all of the costs listed above are avoidable costs in the event that an order is turned down, what amount would the company have to charge for the Pyburn wedding cake to just break even?