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Weldon Corporation has provided the following data from its activity-based costing accounting system: Weldon 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) $340,000 B) $82,000 C) $0 D) $240,000 Distribution of Resource Consumption across Activity Cost Pools: Weldon 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) $340,000 B) $82,000 C) $0 D) $240,000 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) $340,000
B) $82,000
C) $0
D) $240,000

E) A) and D)
F) A) and C)

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Parts administration is an example of a:


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

E) B) and C)
F) A) and D)

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Wedd Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $27,200; Supervising, $9,300; and Other, $9,500. 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 appear below: Wedd Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $27,200; Supervising, $9,300; and Other, $9,500. 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 appear below: What is the overhead cost assigned to Product O6 under activity-based costing? A) $2,325 B) $23,000 C) $14,837 D) $12,512 What is the overhead cost assigned to Product O6 under activity-based costing?


A) $2,325
B) $23,000
C) $14,837
D) $12,512

E) A) and D)
F) A) and C)

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Boudoin Corporation manufactures two products: Product T72T and Product L34S. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products T72T and L34S. Boudoin Corporation manufactures two products: Product T72T and Product L34S. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products T72T and L34S. Required: a. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product T72T? b. Using the ABC system, what percentage of the total overhead cost is assigned to Product L34S? Boudoin Corporation manufactures two products: Product T72T and Product L34S. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products T72T and L34S. Required: a. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product T72T? b. Using the ABC system, what percentage of the total overhead cost is assigned to Product L34S? Required: a. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product T72T? b. Using the ABC system, what percentage of the total overhead cost is assigned to Product L34S?

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a. The activity rates would be computed ...

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Departmental overhead rates may not correctly assign overhead costs due to:


A) the use of direct labor hours in allocating overhead costs to products rather than machine time or quantity of materials used.
B) the high correlation between direct labor-hours and the incurrence of overhead costs.
C) overreliance on volume as a basis for allocating overhead costs where products differ regarding the number of units produced, lot size, or complexity of production.
D) difficulties associated with identifying cost pools for the first stage of the allocation process.

E) C) and D)
F) B) and C)

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Deemer 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: Deemer 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: Distribution of Resource Consumption Across Activity Cost Pools: 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: Activity: The activity rate for the Supervising activity cost pool under activity-based costing is closest to: A) $15.00 per batch B) $79.00 per batch C) $15.80 per batch D) $6.00 per batch Distribution of Resource Consumption Across Activity Cost Pools: Deemer 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: Distribution of Resource Consumption Across Activity Cost Pools: 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: Activity: The activity rate for the Supervising activity cost pool under activity-based costing is closest to: A) $15.00 per batch B) $79.00 per batch C) $15.80 per batch D) $6.00 per batch 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: Activity: Deemer 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: Distribution of Resource Consumption Across Activity Cost Pools: 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: Activity: The activity rate for the Supervising activity cost pool under activity-based costing is closest to: A) $15.00 per batch B) $79.00 per batch C) $15.80 per batch D) $6.00 per batch The activity rate for the Supervising activity cost pool under activity-based costing is closest to:


A) $15.00 per batch
B) $79.00 per batch
C) $15.80 per batch
D) $6.00 per batch

E) B) and D)
F) All of the above

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Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below: Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below: 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 appear below: Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. What is the product margin for Product M5 under activity-based costing? A) $18,000 B) $16,800 C) $4,786 D) $2,686 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 appear below: Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below: 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 appear below: Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. What is the product margin for Product M5 under activity-based costing? A) $18,000 B) $16,800 C) $4,786 D) $2,686 Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below: 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 appear below: Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. What is the product margin for Product M5 under activity-based costing? A) $18,000 B) $16,800 C) $4,786 D) $2,686 What is the product margin for Product M5 under activity-based costing?


A) $18,000
B) $16,800
C) $4,786
D) $2,686

E) None of the above
F) A) and C)

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Bachrodt Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below: Bachrodt Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below: 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 appear below Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. What is the product margin for Product Y7 under activity-based costing? A) -$3,800 B) $4,728 C) $14,200 D) $6,208 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 appear below Bachrodt Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below: 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 appear below Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. What is the product margin for Product Y7 under activity-based costing? A) -$3,800 B) $4,728 C) $14,200 D) $6,208 Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. Bachrodt Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below: 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 appear below Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. What is the product margin for Product Y7 under activity-based costing? A) -$3,800 B) $4,728 C) $14,200 D) $6,208 What is the product margin for Product Y7 under activity-based costing?


A) -$3,800
B) $4,728
C) $14,200
D) $6,208

E) A) and C)
F) A) and B)

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Diehl 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: Diehl 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: Distribution of resource consumption: 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) $68,000 B) $0 C) $116,000 D) $58,000 Distribution of resource consumption: Diehl 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: Distribution of resource consumption: 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) $68,000 B) $0 C) $116,000 D) $58,000 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) $68,000
B) $0
C) $116,000
D) $58,000

E) C) and D)
F) A) and B)

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Bennette Corporation has provided the following data concerning its overhead costs for the coming year:  Wages and salaries $340,000 Depreciation 120,000 Rent 140,000 Total $600,000\begin{array}{lr}\text { Wages and salaries } & \$ 340,000 \\\text { Depreciation } & 120,000 \\\text { Rent } & 140,000 \\\text { Total } & \$ 600,000\end{array} The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year: Bennette Corporation has provided the following data concerning its overhead costs for the coming year: \begin{array}{lr} \text { Wages and salaries } & \$ 340,000 \\ \text { Depreciation } & 120,000 \\ \text { Rent } & 140,000 \\ \text { Total } & \$ 600,000 \end{array} 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) $430 per order B) $420 per order C) $360 per order D) $440 per order 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: Bennette Corporation has provided the following data concerning its overhead costs for the coming year: \begin{array}{lr} \text { Wages and salaries } & \$ 340,000 \\ \text { Depreciation } & 120,000 \\ \text { Rent } & 140,000 \\ \text { Total } & \$ 600,000 \end{array} 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) $430 per order B) $420 per order C) $360 per order D) $440 per order The activity rate for the Order Processing activity cost pool is closest to:


A) $430 per order
B) $420 per order
C) $360 per order
D) $440 per order

E) B) and C)
F) None of the above

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Factory security and assembly activities at an appliance manufacturing plant would be best classified as unit-level, batch-level, product-level, or organization-sustaining activities? Factory security and assembly activities at an appliance manufacturing plant would be best classified as unit-level, batch-level, product-level, or organization-sustaining activities? A) Option A B) Option B C) Option C D) Option D


A) Option A
B) Option B
C) Option C
D) Option D

E) C) and D)
F) B) and C)

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Cambra Corporation manufactures two products: Product N70E and Product F54Y. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products N70E and F54Y. Cambra Corporation manufactures two products: Product N70E and Product F54Y. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products N70E and F54Y. Using the ABC system, the percentage of the total overhead cost that is assigned to Product F54Y is closest to: A) 51.17% B) 27.16% C) 50.00% D) 24.01% Cambra Corporation manufactures two products: Product N70E and Product F54Y. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products N70E and F54Y. Using the ABC system, the percentage of the total overhead cost that is assigned to Product F54Y is closest to: A) 51.17% B) 27.16% C) 50.00% D) 24.01% Using the ABC system, the percentage of the total overhead cost that is assigned to Product F54Y is closest to:


A) 51.17%
B) 27.16%
C) 50.00%
D) 24.01%

E) A) and C)
F) B) and D)

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Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing system with three activity cost pools. The activity rate for the Size-Related activity cost pool is $1.13 per guest. (The greater the number of guests, the larger the cake.) The activity rate for the Complexity-Related cost pool is $43.52 per tier. (Cakes with more tiers are more complex.) Finally, the activity rate for the Order-Related activity cost pool is $61.44 per order. (Each wedding involves one order for a cake.) 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: Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing system with three activity cost pools. The activity rate for the Size-Related activity cost pool is $1.13 per guest. (The greater the number of guests, the larger the cake.) The activity rate for the Complexity-Related cost pool is $43.52 per tier. (Cakes with more tiers are more complex.) Finally, the activity rate for the Order-Related activity cost pool is $61.44 per order. (Each wedding involves one order for a cake.) 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 Ericson wedding cake to just break even? A) $61.44 B) $387.45 C) $16.89 D) $320.21 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 Ericson wedding cake to just break even?


A) $61.44
B) $387.45
C) $16.89
D) $320.21

E) None of the above
F) C) and D)

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Guerra Electronics manufactures a variety of electronic gadgets for use in the home. Which of the following would probably be the most accurate measure of activity to use for allocating the costs of inspecting the finished products at Guerra?


A) Machine-hours
B) Direct labor-hours
C) Inspection time
D) Number of inspections

E) All of the above
F) A) and B)

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Lysiak 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: Lysiak 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: Distribution of Resource Consumption Across Activity Cost Pools: 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: Activity: The activity rate for the Machining activity cost pool under activity-based costing is closest to: A) $18.00 per MH B) $5.30 per MH C) $2.82 per MH D) $3.18 per MH Distribution of Resource Consumption Across Activity Cost Pools: Lysiak 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: Distribution of Resource Consumption Across Activity Cost Pools: 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: Activity: The activity rate for the Machining activity cost pool under activity-based costing is closest to: A) $18.00 per MH B) $5.30 per MH C) $2.82 per MH D) $3.18 per MH 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: Activity: Lysiak 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: Distribution of Resource Consumption Across Activity Cost Pools: 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: Activity: The activity rate for the Machining activity cost pool under activity-based costing is closest to: A) $18.00 per MH B) $5.30 per MH C) $2.82 per MH D) $3.18 per MH The activity rate for the Machining activity cost pool under activity-based costing is closest to:


A) $18.00 per MH
B) $5.30 per MH
C) $2.82 per MH
D) $3.18 per MH

E) C) and D)
F) B) and D)

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Daston Company manufactures two products, Product F and Product G. The company expects to produce and sell 1,600 units of Product F and 3,000 units of Product G during the current year. Data relating to the company's three activity cost pools are given below for the current year: Daston Company manufactures two products, Product F and Product G. The company expects to produce and sell 1,600 units of Product F and 3,000 units of Product G during the current year. Data relating to the company's three activity cost pools are given below for the current year: Required: Using the activity-based costing approach, determine the overhead cost per unit for each product. Required: Using the activity-based costing approach, determine the overhead cost per unit for each product.

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The activity rates for each activity cos...

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Digerolamo Enterprises makes a variety of products that it sells to other businesses. The company's activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that ABC system are listed below: Digerolamo Enterprises makes a variety of products that it sells to other businesses. The company's activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that ABC system are listed below: The cost of serving customers, $1,159.00 per customer, is the cost of serving a customer for one year. Carlacci Corporation buys only one of the company's products which Digerolamo Enterprises sells for $18.85 per unit. Last year Carlacci Corporation ordered a total of 1,500 units of this product in 4 orders. To fill the orders, 9 batches were required. The direct materials cost is $8.15 per unit and the direct labor cost is $2.60 per unit. Each unit requires 0.15 DLHs. According to the ABC system, the total cost of the activity Processing batches for this customer this past year was closest to: A) $59.35 B) $1,704.15 C) $1,763.50 D) $189.35 The cost of serving customers, $1,159.00 per customer, is the cost of serving a customer for one year. Carlacci Corporation buys only one of the company's products which Digerolamo Enterprises sells for $18.85 per unit. Last year Carlacci Corporation ordered a total of 1,500 units of this product in 4 orders. To fill the orders, 9 batches were required. The direct materials cost is $8.15 per unit and the direct labor cost is $2.60 per unit. Each unit requires 0.15 DLHs. According to the ABC system, the total cost of the activity "Processing batches" for this customer this past year was closest to:


A) $59.35
B) $1,704.15
C) $1,763.50
D) $189.35

E) C) and D)
F) A) and D)

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When combining activities in an activity-based costing system, batch-level activities should be combined with unit-level activities whenever possible.

A) True
B) False

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Handal Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Machining, Order Filling, and Other. The costs in those activity cost pools appear below: Handal Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Machining, Order Filling, and Other. The costs in those activity cost pools appear below: 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 appear below: 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 S1 under activity-based costing? A) $12,008 B) $16,000 C) $5,440 D) $17,448 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 appear below: Handal Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Machining, Order Filling, and Other. The costs in those activity cost pools appear below: 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 appear below: 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 S1 under activity-based costing? A) $12,008 B) $16,000 C) $5,440 D) $17,448 Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. Handal Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Machining, Order Filling, and Other. The costs in those activity cost pools appear below: 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 appear below: 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 S1 under activity-based costing? A) $12,008 B) $16,000 C) $5,440 D) $17,448 What is the overhead cost assigned to Product S1 under activity-based costing?


A) $12,008
B) $16,000
C) $5,440
D) $17,448

E) All of the above
F) None of the above

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Hails Corporation manufactures two products: Product Q21F and Product H44W. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Q21F and H44W. Hails Corporation manufactures two products: Product Q21F and Product H44W. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Q21F and H44W. Using the ABC system, the percentage of the total overhead cost that is assigned to Product Q21F is closest to: A) 26.71% B) 50.00% C) 34.18% D) 60.89% Hails Corporation manufactures two products: Product Q21F and Product H44W. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Q21F and H44W. Using the ABC system, the percentage of the total overhead cost that is assigned to Product Q21F is closest to: A) 26.71% B) 50.00% C) 34.18% D) 60.89% Using the ABC system, the percentage of the total overhead cost that is assigned to Product Q21F is closest to:


A) 26.71%
B) 50.00%
C) 34.18%
D) 60.89%

E) All of the above
F) B) and D)

Correct Answer

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