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In an ABC system, departmental managers are typically interviewed to determine how the departmental non-personnel costs should be distributed across the activity cost pools.

A) True
B) False

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A duration driver provides a simple count of the number of times that an activity occurs.

A) True
B) False

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Moorman Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other. The company's overhead costs consist of equipment depreciation and indirect labor and are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation totals $53,000 and indirect labor totals $3,000. Data concerning the distribution of resource consumption across activity cost pools appear below: Moorman Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other. The company's overhead costs consist of equipment depreciation and indirect labor and are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation totals $53,000 and indirect labor totals $3,000. Data concerning the distribution of resource consumption across activity cost pools appear below: Required: Assign overhead costs to activity cost pools using activity-based costing. Required: Assign overhead costs to activity cost pools using activity-based costing.

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Assign overhead costs to activity cost p...

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Meli Corporation manufactures two products: Product L61P and Product B60E. 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 L61P and B60E. Meli Corporation manufactures two products: Product L61P and Product B60E. 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 L61P and B60E. Using the plantwide overhead rate, the percentage of the total overhead cost that is allocated to Product B60E is closest to: A) 31.37% B) 30.00% C) 10.34% D) 50.00% Meli Corporation manufactures two products: Product L61P and Product B60E. 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 L61P and B60E. Using the plantwide overhead rate, the percentage of the total overhead cost that is allocated to Product B60E is closest to: A) 31.37% B) 30.00% C) 10.34% D) 50.00% Using the plantwide overhead rate, the percentage of the total overhead cost that is allocated to Product B60E is closest to:


A) 31.37%
B) 30.00%
C) 10.34%
D) 50.00%

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

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Scholfield 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: Scholfield 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, $1,191.00 per customer, is the cost of serving a customer for one year. Latif Corporation buys only one of the company's products which Scholfield Enterprises sells for $15.60 per unit. Last year Latif Corporation ordered a total of 1,100 units of this product in 2 orders. To fill the orders, 7 batches were required. The direct materials cost is $7.85 per unit and the direct labor cost is $1.90 per unit. Each unit requires 0.10 DLHs. According to the ABC system, the total cost of the activity Processing batches for this customer this past year was closest to: A) $967.40 B) $1,020.00 C) $52.60 D) $138.20 The cost of serving customers, $1,191.00 per customer, is the cost of serving a customer for one year. Latif Corporation buys only one of the company's products which Scholfield Enterprises sells for $15.60 per unit. Last year Latif Corporation ordered a total of 1,100 units of this product in 2 orders. To fill the orders, 7 batches were required. The direct materials cost is $7.85 per unit and the direct labor cost is $1.90 per unit. Each unit requires 0.10 DLHs. According to the ABC system, the total cost of the activity "Processing batches" for this customer this past year was closest to:


A) $967.40
B) $1,020.00
C) $52.60
D) $138.20

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

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Arrojo Corporation manufactures two products: Product X71B and Product C91I. 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 X71B and C91I. Arrojo Corporation manufactures two products: Product X71B and Product C91I. 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 X71B and C91I. Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product X71B? A) $416,500 B) $499,800 C) $333,200 D) $372,000 Arrojo Corporation manufactures two products: Product X71B and Product C91I. 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 X71B and C91I. Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product X71B? A) $416,500 B) $499,800 C) $333,200 D) $372,000 Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product X71B?


A) $416,500
B) $499,800
C) $333,200
D) $372,000

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

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Mustafa 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: Mustafa 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, $2,737.00 per customer, is the cost of serving a customer for one year. Dahle Corporation buys only one of the company's products. The details of last year's purchases of this product are listed below: According to the ABC system, the total cost of the activity Supporting assembly for this customer this past year was closest to: A) $6,000.00 B) $3.00 C) $320.00 D) $2,400.00 The cost of serving customers, $2,737.00 per customer, is the cost of serving a customer for one year. Dahle Corporation buys only one of the company's products. The details of last year's purchases of this product are listed below: Mustafa 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, $2,737.00 per customer, is the cost of serving a customer for one year. Dahle Corporation buys only one of the company's products. The details of last year's purchases of this product are listed below: According to the ABC system, the total cost of the activity Supporting assembly for this customer this past year was closest to: A) $6,000.00 B) $3.00 C) $320.00 D) $2,400.00 According to the ABC system, the total cost of the activity "Supporting assembly" for this customer this past year was closest to:


A) $6,000.00
B) $3.00
C) $320.00
D) $2,400.00

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

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Younan Corporation manufactures two products: Product E47F and Product D02M. 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 E47F and D02M. Younan Corporation manufactures two products: Product E47F and Product D02M. 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 E47F and D02M. Using the ABC system, the percentage of the total overhead cost that is assigned to Product D02M is closest to: A) 49.06% B) 22.30% C) 26.76% D) 50.00% Younan Corporation manufactures two products: Product E47F and Product D02M. 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 E47F and D02M. Using the ABC system, the percentage of the total overhead cost that is assigned to Product D02M is closest to: A) 49.06% B) 22.30% C) 26.76% D) 50.00% Using the ABC system, the percentage of the total overhead cost that is assigned to Product D02M is closest to:


A) 49.06%
B) 22.30%
C) 26.76%
D) 50.00%

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

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Delauder 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: Delauder 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, $1,608.00 per customer, is the cost of serving a customer for one year. Grennon Corporation buys only one of the company's products. The details of last year's purchases of this product are listed below: According to the ABC system, the total cost of the activity Supporting assembly for this customer this past year was closest to: A) $5,175.00 B) $0.86 C) $1,293.75 D) $375.00 The cost of serving customers, $1,608.00 per customer, is the cost of serving a customer for one year. Grennon Corporation buys only one of the company's products. The details of last year's purchases of this product are listed below: Delauder 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, $1,608.00 per customer, is the cost of serving a customer for one year. Grennon Corporation buys only one of the company's products. The details of last year's purchases of this product are listed below: According to the ABC system, the total cost of the activity Supporting assembly for this customer this past year was closest to: A) $5,175.00 B) $0.86 C) $1,293.75 D) $375.00 According to the ABC system, the total cost of the activity "Supporting assembly" for this customer this past year was closest to:


A) $5,175.00
B) $0.86
C) $1,293.75
D) $375.00

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

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Kretlow Corporation has provided the following data from its activity-based costing accounting system: Kretlow Corporation has provided the following data from its activity-based costing accounting system: Required: Compute the activity rates for each of the three cost pools. Show your work! Required: Compute the activity rates for each of the three cost pools. Show your work!

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Mayeux 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: Mayeux 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: How much cost, in total, would be allocated in the first-stage allocation to the Setting Up activity cost pool? A) $360,000 B) $336,000 C) $288,000 D) $348,000 Distribution of resource consumption: Mayeux 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: How much cost, in total, would be allocated in the first-stage allocation to the Setting Up activity cost pool? A) $360,000 B) $336,000 C) $288,000 D) $348,000 How much cost, in total, would be allocated in the first-stage allocation to the Setting Up activity cost pool?


A) $360,000
B) $336,000
C) $288,000
D) $348,000

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

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Nissley Wedding Fantasy Corporation 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: Nissley Wedding Fantasy Corporation 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 the company charges $465.39 for the Twersky wedding cake, what would be the overall margin on the order? A) $135.41 B) $80.77 C) $384.62 D) $155.49 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: Nissley Wedding Fantasy Corporation 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 the company charges $465.39 for the Twersky wedding cake, what would be the overall margin on the order? A) $135.41 B) $80.77 C) $384.62 D) $155.49 Assuming that the company charges $465.39 for the Twersky wedding cake, what would be the overall margin on the order?


A) $135.41
B) $80.77
C) $384.62
D) $155.49

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

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Mcinture 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: Mcinture 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, $2,334.00 per customer, is the cost of serving a customer for one year. Schwerin Corporation buys only one of the company's products which Mcinture Enterprises sells for $28.40 per unit. Last year Schwerin Corporation ordered a total of 1,100 units of this product in 2 orders. To fill the orders, 6 batches were required. The direct materials cost is $8.40 per unit and the direct labor cost is $1.80 per unit. Each unit requires 0.10 DLHs. Required: What is the customer margin on sales to Schwerin Corporation for the year? The cost of serving customers, $2,334.00 per customer, is the cost of serving a customer for one year. Schwerin Corporation buys only one of the company's products which Mcinture Enterprises sells for $28.40 per unit. Last year Schwerin Corporation ordered a total of 1,100 units of this product in 2 orders. To fill the orders, 6 batches were required. The direct materials cost is $8.40 per unit and the direct labor cost is $1.80 per unit. Each unit requires 0.10 DLHs. Required: What is the customer margin on sales to Schwerin Corporation for the year?

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Hagy Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Data concerning the company's costs and activity-based costing system appear below: Hagy Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Data concerning the company's costs and activity-based costing system appear below: Required: Assign overhead costs to activity cost pools using activity-based costing. Hagy Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Data concerning the company's costs and activity-based costing system appear below: Required: Assign overhead costs to activity cost pools using activity-based costing. Required: Assign overhead costs to activity cost pools using activity-based costing.

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Assign overhead costs to activity cost p...

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Departmental overhead rates will correctly assign overhead costs in situations where a company has a range of products that differ in volume, lot size, or complexity of production.

A) True
B) False

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Ciulla Corporation manufactures two products: Product J12N and Product H63J. The company 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 J12N and H63J. Ciulla Corporation manufactures two products: Product J12N and Product H63J. The company 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 J12N and H63J. Required: a. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product H63J? b. Using the ABC system, what percentage of the total overhead cost is assigned to Product J12N? Ciulla Corporation manufactures two products: Product J12N and Product H63J. The company 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 J12N and H63J. Required: a. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product H63J? b. Using the ABC system, what percentage of the total overhead cost is assigned to Product J12N? Required: a. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product H63J? b. Using the ABC system, what percentage of the total overhead cost is assigned to Product J12N?

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a.
blured image The overhead cost charged to Produc...

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The Kamienski Cleaning Brigade Company provides housecleaning services to its clients. The company uses an activity-based costing system for its overhead costs. The company has provided the following data from its activity-based costing system. The Kamienski Cleaning Brigade Company provides housecleaning services to its clients. The company uses an activity-based costing system for its overhead costs. The company has provided the following data from its activity-based costing system. The Other activity cost pool consists of the costs of idle capacity and organization-sustaining costs. One particular client, the Whiddon family, requested 15 jobs during the year that required a total of 60 hours of housecleaning. For this service, the client was charged $1,170. Required: a. Using the activity-based costing system, compute the customer margin for the Whiddon family. Round off all calculations to the nearest whole cent. b. Assume the company decides instead to use a traditional costing system in which ALL costs are allocated to customers on the basis of cleaning hours. Compute the margin for the Whiddon family. Round off all calculations to the nearest whole cent. The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. One particular client, the Whiddon family, requested 15 jobs during the year that required a total of 60 hours of housecleaning. For this service, the client was charged $1,170. Required: a. Using the activity-based costing system, compute the customer margin for the Whiddon family. Round off all calculations to the nearest whole cent. b. Assume the company decides instead to use a traditional costing system in which ALL costs are allocated to customers on the basis of cleaning hours. Compute the margin for the Whiddon family. Round off all calculations to the nearest whole cent.

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a. The first step is to compute activity...

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Millner Corporation has provided the following data from its activity-based costing accounting system: Millner 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) $101 per product design hour B) $1,372,448 per product design hour C) $176 per product design hour D) $57 per product design hour The activity rate for the "designing products" activity cost pool is closest to:


A) $101 per product design hour
B) $1,372,448 per product design hour
C) $176 per product design hour
D) $57 per product design hour

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

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Foster 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: Foster 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: Distribution of resource consumption: 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) $1.79 B) $1.73 C) $2.10 D) $1.35 Distribution of resource consumption: Foster 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: Distribution of resource consumption: 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) $1.79 B) $1.73 C) $2.10 D) $1.35 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: Foster 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: Distribution of resource consumption: 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) $1.79 B) $1.73 C) $2.10 D) $1.35 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) $1.79
B) $1.73
C) $2.10
D) $1.35

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

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Angara Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system: Angara Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system: The activity rate for the batch setup activity cost pool is closest to: A) $66.60 B) $106.60 C) $97.00 D) $177.60 Angara Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system: The activity rate for the batch setup activity cost pool is closest to: A) $66.60 B) $106.60 C) $97.00 D) $177.60 The activity rate for the batch setup activity cost pool is closest to:


A) $66.60
B) $106.60
C) $97.00
D) $177.60

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

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