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Setting up a machine to change from producing one product to another is an example of a:


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

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

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Minon, Inc., manufactures and sells two products: Product J1 and Product E7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Minon, Inc., manufactures and sells two products: Product J1 and Product E7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $19.90 per DLH. The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The overhead applied to each unit of Product J1 under activity-based costing is closest to: A) $257.10 per unit B) $511.70 per unit C) $521.17 per unit D) $545.79 per unit The direct labor rate is $19.90 per DLH. The direct materials cost per unit for each product is given below: Minon, Inc., manufactures and sells two products: Product J1 and Product E7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $19.90 per DLH. The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The overhead applied to each unit of Product J1 under activity-based costing is closest to: A) $257.10 per unit B) $511.70 per unit C) $521.17 per unit D) $545.79 per unit The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Minon, Inc., manufactures and sells two products: Product J1 and Product E7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $19.90 per DLH. The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The overhead applied to each unit of Product J1 under activity-based costing is closest to: A) $257.10 per unit B) $511.70 per unit C) $521.17 per unit D) $545.79 per unit The overhead applied to each unit of Product J1 under activity-based costing is closest to:


A) $257.10 per unit
B) $511.70 per unit
C) $521.17 per unit
D) $545.79 per unit

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

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Which of the following would be classified as a product-level activity?


A) Setting up a machine for a standard product.
B) Operating a cafeteria for employees.
C) Personnel administration.
D) Testing a prototype for a new model.

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

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Activity rates in activity-based costing are computed by dividing costs from the first-stage cost assignments by the activity measure for each activity cost pool.

A) True
B) False

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When a company changes from a traditional costing system to an activity-based costing system, costs will ordinarily shift from low-volume products to high-volume products when the activity-based costing system includes batch-level or product-level costs.

A) True
B) False

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Olide, Inc., manufactures and sells two products: Product B9 and Product C8. The annual production and sales of Product of B9 is 300 units and of Product C8 is 100 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Olide, Inc., manufactures and sells two products: Product B9 and Product C8. The annual production and sales of Product of B9 is 300 units and of Product C8 is 100 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The overhead applied to each unit of Product C8 under activity-based costing is closest to: A) $1,433.61 per unit B) $1,712.79 per unit C) $1,075.70 per unit D) $914.38 per unit The overhead applied to each unit of Product C8 under activity-based costing is closest to:


A) $1,433.61 per unit
B) $1,712.79 per unit
C) $1,075.70 per unit
D) $914.38 per unit

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

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Facility-level costs can be traced on a cause-and-effect basis to individual products.

A) True
B) False

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Cabat Company manufactures two products, Product C and ProductD. The company estimated it would incur $177,910 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor-hours. Data concerning the current period's operations appear below: Cabat Company manufactures two products, Product C and ProductD. The company estimated it would incur $177,910 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor-hours. Data concerning the current period's operations appear below: Required: a. Compute the predetermined overhead rate under the current method, and determine the unit product cost of each product for the current year. b. The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor-hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below: Determine the unit product cost of each product for the current period using the activity-based costing approach. Required: a. Compute the predetermined overhead rate under the current method, and determine the unit product cost of each product for the current year. b. The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor-hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below: Cabat Company manufactures two products, Product C and ProductD. The company estimated it would incur $177,910 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor-hours. Data concerning the current period's operations appear below: Required: a. Compute the predetermined overhead rate under the current method, and determine the unit product cost of each product for the current year. b. The company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor-hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below: Determine the unit product cost of each product for the current period using the activity-based costing approach. Determine the unit product cost of each product for the current period using the activity-based costing approach.

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a. The expected total direct labor hours during the period are computed as follows: 11eaa0ae_3d73_1ff8_8fb0_295fdb00d7cf_TB2460_00 Using these hours as a base, the predetermined overhead using direct labor hours would be: Predetermined overhead rate = Estimated overhead cost ÷ Expected direct labor hours = $177,910 ÷ 6,960 DLHs = $25.56 per DLH Using this overhead rate, the unit product costs are: 11eaa0ae_3d73_1ff9_8fb0_25b5e6f18d88_TB2460_00 b. The overhead rates for each activity center are as follows: 11eaa0ae_3d73_1ffa_8fb0_f19b74da789e_TB2460_00 The overhead cost charged to each product is: 11eaa0ae_3d73_1ffb_8fb0_15388cf191a0_TB2460_00 Overhead cost per unit: Product C: $96,270 ÷ 3,800 units = $25.33 per unit Product D: $81,640 ÷ 3,000 units = $27.21 per unit Using activity based costing, the unit product cost of each product would be: 11eaa0ae_3d73_1ffc_8fb0_8b2a5752021b_TB2460_00

Jeanlouis, Inc., manufactures and sells two products: Product D0 and Product D5. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Jeanlouis, Inc., manufactures and sells two products: Product D0 and Product D5. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The total overhead applied to Product D5 under activity-based costing is closest to: A) $319,252 B) $125,286 C) $304,920 D) $273,240 The total overhead applied to Product D5 under activity-based costing is closest to:


A) $319,252
B) $125,286
C) $304,920
D) $273,240

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

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Diemer, Inc., manufactures and sells two products: Product N4 and Product R7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Diemer, Inc., manufactures and sells two products: Product N4 and Product R7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to: A) $39.68 per DLH B) $81.82 per DLH C) $29.71 per DLH D) $47.79 per DLH The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Diemer, Inc., manufactures and sells two products: Product N4 and Product R7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to: A) $39.68 per DLH B) $81.82 per DLH C) $29.71 per DLH D) $47.79 per DLH If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to:


A) $39.68 per DLH
B) $81.82 per DLH
C) $29.71 per DLH
D) $47.79 per DLH

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

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Assembling a product is an example of a:


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

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

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Serva, Inc., manufactures and sells two products: Product R4 and Product N4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Serva, Inc., manufactures and sells two products: Product R4 and Product N4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $24.70 per DLH. The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The unit product cost of Product N4 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to: A) $489.43 per unit B) $451.00 per unit C) $409.69 per unit D) $425.26 per unit The direct labor rate is $24.70 per DLH. The direct materials cost per unit for each product is given below: Serva, Inc., manufactures and sells two products: Product R4 and Product N4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $24.70 per DLH. The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The unit product cost of Product N4 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to: A) $489.43 per unit B) $451.00 per unit C) $409.69 per unit D) $425.26 per unit The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Serva, Inc., manufactures and sells two products: Product R4 and Product N4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $24.70 per DLH. The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The unit product cost of Product N4 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to: A) $489.43 per unit B) $451.00 per unit C) $409.69 per unit D) $425.26 per unit The unit product cost of Product N4 under the company's traditional costing method in which all overhead is allocated on the basis of direct labor-hours is closest to:


A) $489.43 per unit
B) $451.00 per unit
C) $409.69 per unit
D) $425.26 per unit

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

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Accurso, Inc., manufactures and sells two products: Product J9 and Product S5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Accurso, Inc., manufactures and sells two products: Product J9 and Product S5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $22.50 per DLH. The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to: A) $26.55 per DLH B) $41.94 per DLH C) $28.94 per DLH D) $129.66 per DLH The direct labor rate is $22.50 per DLH. The direct materials cost per unit for each product is given below: Accurso, Inc., manufactures and sells two products: Product J9 and Product S5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $22.50 per DLH. The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to: A) $26.55 per DLH B) $41.94 per DLH C) $28.94 per DLH D) $129.66 per DLH The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Accurso, Inc., manufactures and sells two products: Product J9 and Product S5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $22.50 per DLH. The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to: A) $26.55 per DLH B) $41.94 per DLH C) $28.94 per DLH D) $129.66 per DLH If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to:


A) $26.55 per DLH
B) $41.94 per DLH
C) $28.94 per DLH
D) $129.66 per DLH

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

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In the past, Hypochondriac Hospital allocated all of its overhead costs to patients based on nursing time. Hypochondriac has decided to switch to an activity based costing system using three activity cost pools. Information related to the new system is as follows: In the past, Hypochondriac Hospital allocated all of its overhead costs to patients based on nursing time. Hypochondriac has decided to switch to an activity based costing system using three activity cost pools. Information related to the new system is as follows: Data concerning two patients follows: Compared to the old system, which of the two patients X and Y will be charged more overhead cost under the new activity-based costing system? A) neither patient will be charged more B) Patient X C) Patient Y D) both Patient X and Patient Y Data concerning two patients follows: In the past, Hypochondriac Hospital allocated all of its overhead costs to patients based on nursing time. Hypochondriac has decided to switch to an activity based costing system using three activity cost pools. Information related to the new system is as follows: Data concerning two patients follows: Compared to the old system, which of the two patients X and Y will be charged more overhead cost under the new activity-based costing system? A) neither patient will be charged more B) Patient X C) Patient Y D) both Patient X and Patient Y Compared to the old system, which of the two patients X and Y will be charged more overhead cost under the new activity-based costing system?


A) neither patient will be charged more
B) Patient X
C) Patient Y
D) both Patient X and Patient Y

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

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D

Bolerjack, Inc., manufactures and sells two products: Product G9 and Product B6. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Bolerjack, Inc., manufactures and sells two products: Product G9 and Product B6. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $16.50 per DLH. The direct materials cost per unit is $204.30 for Product G9 and $284.50 for Product B6. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The unit product cost of Product G9 under activity-based costing is closest to: A) $1,705.74 per unit B) $3,350.98 per unit C) $1,293.24 per unit D) $3,929.80 per unit The direct labor rate is $16.50 per DLH. The direct materials cost per unit is $204.30 for Product G9 and $284.50 for Product B6. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Bolerjack, Inc., manufactures and sells two products: Product G9 and Product B6. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $16.50 per DLH. The direct materials cost per unit is $204.30 for Product G9 and $284.50 for Product B6. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The unit product cost of Product G9 under activity-based costing is closest to: A) $1,705.74 per unit B) $3,350.98 per unit C) $1,293.24 per unit D) $3,929.80 per unit The unit product cost of Product G9 under activity-based costing is closest to:


A) $1,705.74 per unit
B) $3,350.98 per unit
C) $1,293.24 per unit
D) $3,929.80 per unit

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

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Which of the following would be classified as a product-level activity?


A) Setting up a machine for a batch of a standard product.
B) Operating a cafeteria for employees.
C) Running the Human Resource department.
D) Advertising a product.

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

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Garhart Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Garhart Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Data concerning two products appear below: Required: a. How much overhead cost would be assigned to Product R57J using the company's activity-based costing system? Show your work! b. How much overhead cost would be assigned to Product W17B using the company's activity-based costing system? Show your work! Data concerning two products appear below: Garhart Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Data concerning two products appear below: Required: a. How much overhead cost would be assigned to Product R57J using the company's activity-based costing system? Show your work! b. How much overhead cost would be assigned to Product W17B using the company's activity-based costing system? Show your work! Required: a. How much overhead cost would be assigned to Product R57J using the company's activity-based costing system? Show your work! b. How much overhead cost would be assigned to Product W17B using the company's activity-based costing system? Show your work!

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a. Product...

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Boutet, Inc., manufactures and sells two products: Product G5 and Product U1. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Boutet, Inc., manufactures and sells two products: Product G5 and Product U1. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $21.10 per DLH. The direct materials cost per unit is $241.40 for Product G5 and $283.80 for Product U1. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The overhead applied to each unit of Product G5 under activity-based costing is closest to: A) $645.30 per unit B) $563.08 per unit C) $395.64 per unit D) $516.26 per unit The direct labor rate is $21.10 per DLH. The direct materials cost per unit is $241.40 for Product G5 and $283.80 for Product U1. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Boutet, Inc., manufactures and sells two products: Product G5 and Product U1. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $21.10 per DLH. The direct materials cost per unit is $241.40 for Product G5 and $283.80 for Product U1. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The overhead applied to each unit of Product G5 under activity-based costing is closest to: A) $645.30 per unit B) $563.08 per unit C) $395.64 per unit D) $516.26 per unit The overhead applied to each unit of Product G5 under activity-based costing is closest to:


A) $645.30 per unit
B) $563.08 per unit
C) $395.64 per unit
D) $516.26 per unit

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

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Stirman, Inc., manufactures and sells two products: Product Z2 and Product F0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Stirman, Inc., manufactures and sells two products: Product Z2 and Product F0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $28.60 per DLH. The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Required: Determine the unit product cost of each product under the activity-based costing method. The direct labor rate is $28.60 per DLH. The direct materials cost per unit for each product is given below: Stirman, Inc., manufactures and sells two products: Product Z2 and Product F0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $28.60 per DLH. The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Required: Determine the unit product cost of each product under the activity-based costing method. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Stirman, Inc., manufactures and sells two products: Product Z2 and Product F0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $28.60 per DLH. The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Required: Determine the unit product cost of each product under the activity-based costing method. Required: Determine the unit product cost of each product under the activity-based costing method.

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Computation of activity rates:...

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Pedrozo, Inc., manufactures and sells two products: Product R9 and Product O3. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Pedrozo, Inc., manufactures and sells two products: Product R9 and Product O3. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to: A) $81.90 per DLH B) $1,140.08 per DLH C) $14.11 per DLH D) $109.20 per DLH The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:


A) $81.90 per DLH
B) $1,140.08 per DLH
C) $14.11 per DLH
D) $109.20 per DLH

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

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C

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