Question 1

Determine the activity rate for procurement per purchase order.

Accepted Answer

A)   $43.53
B)   $18.50
C)   $15.42
D)   $37.00E) B) and C)
F) A) and D)

Question 2

Transformations Hair Salon uses an activity-based costing system in its beauty salon to determine the cost of services.The salon has determined the costs of services by activity as follows:
​
  ​
  ​

Accepted Answer

The answer of Transformations Hair Salon uses an activity-based costing...

Question 3

A single plantwide overhead rate method is very expensive to apply.

Accepted Answer

A) True 
 B)False

Question 4

Bob's Biscuit Corporation budgeted $1,200,000 of factory overhead cost for the coming year.Its plantwide allocation base,machine hours,is budgeted at 100,000 hours.Budgeted units to be produced are 200,000 units.Bob's plantwide factory overhead rate is $12.00 per machine hour.

Accepted Answer

A) True 
 B)False

Question 5

Use of a plantwide factory overhead rate assumes that the activities causing overhead costs are the same across all departments and products.

Accepted Answer

A) True 
 B)False

Question 6

Multiple production department factory overhead rates are most useful when production departments are very similar in their manufacturing processes.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not a reason for banks to use activity-based costing?

Accepted Answer

A)   to determine the amounts charged to customers for services provided
B)   to determine service quality
C)   to determine profitability of services provided
D)   all of the aboveE) B) and D)
F) A) and C)

Question 8

Determine the activity rate for product development per change.

Accepted Answer

A)   $73,000
B)   $8,588
C)   $30,417
D)   $16,222E) B) and D)
F) A) and B)

Question 9

Determine the activity rate for materials handling per move.

Accepted Answer

A)   $58.82
B)   $50.00
C)   $20.83
D)   $80.65E) None of the above
F) A) and D)

Question 10

If the budget estimates that a table lamp will require 2 hours of finishing and 1 hours of production,what is the total amount of factory overhead the Kaumajet Factory will allocate to table lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours,if 75,000 units are produced?

Accepted Answer

A)   $368,250
B)   $540,000
C)   $832,500
D)   $475,000E) B) and C)
F) C) and D)

Question 11

The Klamath Corp.produces two products,saws and drills.Three activities are used in their manufacture.These activities and their associated costs and bases are as follows:
​
  Requirements:
a)Determine the activity rate for each activity.
b)Determine the overhead cost per unit for each product.

Accepted Answer

(a) ​Stamping:$200,000 / 10,00...

Question 12

Determine the activity rate per production order for scheduling.

Accepted Answer

A)   $200.00
B)   $20.00
C)   $29.41
D)   $10.42E) A) and C)
F) A) and D)

Question 13

Given the following information,determine the activity rate for setups.

Accepted Answer

A)   $58.00
B)   $18.00
C)   $.75
D)   $5.09E) A) and B)
F) A) and C)

Question 14

Managers depend on product costing to make decisions regarding continuing operations and product mix.

Accepted Answer

A) True 
 B)False

Question 15

Service companies can effectively use activity-based costing to compute product (service)costs.

Accepted Answer

A) True 
 B)False

Question 16

The selection of the factory overhead allocation method is important because the method selected determines the accuracy of the product cost.

Accepted Answer

A) True 
 B)False

Question 17

If the budget estimates that a desk lamp will require 1 hours of finishing and 2 hours of production,how much factory overhead will the Kaumajet Factory allocate to each unit of desk lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours?

Accepted Answer

A)   $11.10
B)   $4.91
C)   $5.00
D)   $7.20E) C) and D)
F) A) and B)

Question 18

Which of the following does not rely on managerial decisions involving accurate product costing?

Accepted Answer

A)   product constraints
B)   emphasis of a product line
C)   product mix
D)   product priceE) A) and B)
F) B) and D)

Question 19

Determine the overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc.uses a multiple department rate system. ​

Accepted Answer

A)   $396.80 per unit
B)   $425.60 per unit
C)   $320.00 per unit
D)   $214.40 per unitE) C) and D)
F) A) and C)

Question 20

Calculate the total factory overhead to be charged to desk lamps.

Accepted Answer

A)   $306,667
B)   $235,000
C)   $230,000
D)   $225,000E) A) and B)
F) None of the above

Exam 18: Activity-Based Costing

A single plantwide overhead rate method is very expensive to apply.

Correct Answer
verified

Correct Answer
verified

Determine the activity rate for procurement per purchase order.

Correct Answer
verified

Calculate the total factory overhead to be charged to desk lamps.

Correct Answer
verified

Given the following information,determine the activity rate for setups.

Correct Answer
verified

Determine the activity rate for product development per change.

Correct Answer
verified

Correct Answer
verified

Determine the overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc.uses a multiple department rate system.

Correct Answer
verified

Multiple production department factory overhead rates are most useful when production departments are very similar in their manufacturing processes.

Correct Answer
verified

Which of the following is not a reason for banks to use activity-based costing?

Correct Answer
verified

Use of a plantwide factory overhead rate assumes that the activities causing overhead costs are the same across all departments and products.

Correct Answer
verified

Determine the activity rate for materials handling per move.

Correct Answer
verified

Transformations Hair Salon uses an activity-based costing system in its beauty salon to determine the cost of services.The salon has determined the costs of services by activity as follows:

Correct Answer
verified

Bob's Biscuit Corporation budgeted $1,200,000 of factory overhead cost for the coming year.Its plantwide allocation base,machine hours,is budgeted at 100,000 hours.Budgeted units to be produced are 200,000 units.Bob's plantwide factory overhead rate is $12.00 per machine hour.

Correct Answer
verified

Managers depend on product costing to make decisions regarding continuing operations and product mix.

Correct Answer
verified

Which of the following does not rely on managerial decisions involving accurate product costing?

Correct Answer
verified

The selection of the factory overhead allocation method is important because the method selected determines the accuracy of the product cost.

Correct Answer
verified

Determine the activity rate per production order for scheduling.

Correct Answer
verified

Service companies can effectively use activity-based costing to compute product (service)costs.

Correct Answer
verified

The Klamath Corp.produces two products,saws and drills.Three activities are used in their manufacture.These activities and their associated costs and bases are as follows: Requirements: a)Determine the activity rate for each activity. b)Determine the overhead cost per unit for each product.

Correct Answer
verified
(a) Stamping:$200,000 / 10,00...
View Answer

Exam 18: Activity-Based Costing

A single plantwide overhead rate method is very expensive to apply.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Determine the activity rate for procurement per purchase order.

Correct AnswerverifiedShow Answer

Calculate the total factory overhead to be charged to desk lamps.

Correct AnswerverifiedShow Answer

Given the following information,determine the activity rate for setups.

Correct AnswerverifiedShow Answer

Determine the activity rate for product development per change.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Determine the overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc.uses a multiple department rate system. ​

Correct AnswerverifiedShow Answer

Multiple production department factory overhead rates are most useful when production departments are very similar in their manufacturing processes.

Correct AnswerverifiedShow Answer

Which of the following is not a reason for banks to use activity-based costing?

Correct AnswerverifiedShow Answer

Use of a plantwide factory overhead rate assumes that the activities causing overhead costs are the same across all departments and products.

Correct AnswerverifiedShow Answer

Determine the activity rate for materials handling per move.

Correct AnswerverifiedShow Answer

Transformations Hair Salon uses an activity-based costing system in its beauty salon to determine the cost of services.The salon has determined the costs of services by activity as follows: ​ ​ ​

Correct AnswerverifiedShow Answer

Bob's Biscuit Corporation budgeted $1,200,000 of factory overhead cost for the coming year.Its plantwide allocation base,machine hours,is budgeted at 100,000 hours.Budgeted units to be produced are 200,000 units.Bob's plantwide factory overhead rate is $12.00 per machine hour.

Correct AnswerverifiedShow Answer

Managers depend on product costing to make decisions regarding continuing operations and product mix.

Correct AnswerverifiedShow Answer

Which of the following does not rely on managerial decisions involving accurate product costing?

Correct AnswerverifiedShow Answer

The selection of the factory overhead allocation method is important because the method selected determines the accuracy of the product cost.

Correct AnswerverifiedShow Answer

Determine the activity rate per production order for scheduling.

Correct AnswerverifiedShow Answer

Service companies can effectively use activity-based costing to compute product (service)costs.

Correct AnswerverifiedShow Answer

The Klamath Corp.produces two products,saws and drills.Three activities are used in their manufacture.These activities and their associated costs and bases are as follows: ​ Requirements: a)Determine the activity rate for each activity. b)Determine the overhead cost per unit for each product.

Correct Answerverified(a) ​Stamping:$200,000 / 10,00...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Determine the overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc.uses a multiple department rate system.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Transformations Hair Salon uses an activity-based costing system in its beauty salon to determine the cost of services.The salon has determined the costs of services by activity as follows:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The Klamath Corp.produces two products,saws and drills.Three activities are used in their manufacture.These activities and their associated costs and bases are as follows: Requirements: a)Determine the activity rate for each activity. b)Determine the overhead cost per unit for each product.

Correct Answer
verified
(a) Stamping:$200,000 / 10,00...
View Answer