FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 17: Activity-Based Costing and Analysis

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Multiple Choice

Review LaterAdd Note

Review Later

Aztec Industries produces bread which goes through two operations, mixing and baking, before it is ready to be packaged. Next year's expected costs and activities are shown below. -Compute Aztec's departmental overhead rate for the baking department based on direct labor hours.

A) $1.50 per DLH
B) $5.00 per DLH
C) $0.75 per DLH
D) $0.50 per DLH
E) $2.08 per DLH

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

Correct Answer

verified

Show Answer

Question 32

True/False

Review LaterAdd Note

Review Later

Malone's plantwide overhead rate will be $20.99 per direct labor hour next year.

A) True
B) False

Correct Answer

verified

Show Answer

Question 33

True/False

Review LaterAdd Note

The unit of product is the cost object when the plantwide overhead rate method is used.

What is the reason for pooling costs?

Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base.Next year,600,000 units are expected to be produced taking 0.75 machine hours each.How much overhead will be assigned to each unit produced given the following estimated amounts?

Sparks Company produces and distributes two types of garden sculptures,Plain and Fancy.Budgeted cost and activity for each of its three activity cost pools are shown below.The company plans to produce and sell 64,000 plain units and 49,150 fancy units. a.Compute the approximate overhead cost per unit of Plain under activity-based costing. b.Compute the approximate overhead cost per unit of Fancy under activity-based costing.

The cost object(s) of the activity-based costing method is(are) :

All of the following are examples of facility-level costs except:

The plantwide overhead rate is determined using volume-related measures.

Tarnish Industries produces miniature models of farm equipment. These collectibles are in great demand. It takes two operations, molding and finishing, to complete the miniatures. Next year's expected activities are shown in the following table: -Tarnish Industries uses departmental overhead rates and is planning on a $2 per direct labor hour overhead rate for the molding department.Compute the estimated manufacturing overhead cost for the molding department given the information shown in the table.

A company estimates total overhead costs for the next year to be $1,200,000 and wishes to use direct labor hours as its overhead allocation base.This company makes two products: (1)Fancy X,which requires three direct labor hours per unit,and (2)Plain X,which requires one direct labor hour per unit.If the company plans to make 10,000 units of Fancy X and 10,000 units of Plain X,then each unit produced will be allocated the same amount of overhead.

A company has two products: A and B.It uses a plantwide overhead allocation method based on activity 2 and has prepared the following analysis showing budgeted costs and activities.Use this information to compute (a)the company's plantwide overhead rate and (b)the amount of overhead allocated to Product A.

The first step in using the departmental overhead rate method requires that overhead be traced to each of the company's departments.

Activity-based costing often shifts overhead costs from large volume,standardized products to low-volume,specialty products that consume disproportionate resources.

Allocated overhead ________ vary depending upon the allocation method used.

Cleveland Choppers manufactures two types of motorcycles,a Base and a Loaded model.The following activity and costs have been gathered: The number of components and number of setups are chosen as activity-cost drivers for overhead.Assuming an ABC costing system is being used. -What is the total overhead cost assigned to the Base model?

A company has two products: A and B.It uses activity-based costing and has prepared the following analysis showing budgeted costs and activities.Use this information to compute (a)the company's overhead rates for each of the three activities and (b)the amount of overhead allocated to Product A.

A company estimates that costs for the next year will be $500,000 for indirect labor,$50,000 for factory utilities,and $1,000,000 for the CEO's salary.The company uses machine hours as its overhead allocation base.If 25,000 machine hours are planned for this next year,then a product requiring 10 machine hours will be assigned $220 in overhead.

Facility-level costs vary with the number of units or batches produced.

When calculating the departmental overhead rate,the numerator should be?