Question : 81. Determine the activity-based cost for each tape drive unit. A. $97.73B. $232.69C. $394.12D. $103.84 82. Which of : 1239668

 

 

81. Determine the activity-based cost for each tape drive unit. A. $97.73B. $232.69C. $394.12D. $103.84

 

82. Which of the following is a cost pool used with the activity-based costing method? A. total selling and administrative overheadsB. direct material dollarsC. total factory overheadsD. production setups

 

83. Activity rates are determined by A. dividing the actual cost for each activity pool by the actual activity base for that pool.B. dividing the cost budgeted for each activity pool by the estimated activity base for that pool.C. dividing the actual cost for each activity pool by the estimated activity base for that pool.D. dividing the cost budgeted for each activity pool by the actual activity base in that pool.

 

84. Shubelik Company is changing to an activity-based costing method. They have determined that they will use three cost pools. They are setups, inspections, and assembly. Which of the following would be used as the activity base for assembly? A. number of direct labor hoursB. number of setupsC. number of inspectionsD. number of units to be produced

 

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

Activity Pool

Activity Base

Budgeted Amount

Setups

10,000

$60,000

Inspections

24,000

$120,000

Assembly (DLH)

80,000

$400,000

 

 

 

 A. $58.00B. $6.00C. $.75D. $5.09

 

86. The Skagit Company manufactures Hooks and Nooks. The following shows the activities per product and total activity information: 

 

Setups

Inspections

Assembly (DLH)

Hooks – 4,000 units

1

3

1

Nooks – 8,000 units

2

2

3

 

 

 

 

 

 

 

 

 

      Activity Pool

Activity Base

Budgeted Amount

Setups

20,000

      $  60,000

Inspections

24,000

      120,000

Assembly (DLH)

28,000

      420,000

 

 

 

Calculate the total factory overhead to be charged to each unit of Hooks. A. $33B. $50C. $11D. $61

 

87. The Skagit Company manufactures Hooks and Nooks. The following shows the activities per product and total activity information: 

 

Setups

Inspections

Assembly (DLH)

Hooks – 4,000 units

1

3

1

Nooks – 8,000 units

2

2

3

 

 

 

 

 

 

 

 

 

      Activity Pool

Activity Base

Budgeted Amount

Setups

20,000

      $  60,000

Inspections

24,000

      120,000

Assembly (DLH)

28,000

      420,000

 

 

 

Calculate the total factory overhead to be charged to Nooks. A. $300,000B. $400,000C. $488,000D. $600,000

 

88. The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product and the total overhead information: 

 

Setups

Inspections

Assembly (DLH)

Small Lamps – 3,000 units

8,000

9,000

16,000

Desk Lamps – 6,000 units

16,000

15,000

12,000

 

 

 

 

 

 

 

 

 

Activity Pool

Activity Base

Budgeted Amount

Setups

24,000

$60,000

Inspections

24,000

$120,000

Assembly (DLH)

28,000

$280,000

 

 

 

Calculate the total factory overhead to be charged to desk lamps. A. $306,667B. $235,000C. $230,000D. $225,000

 

89. The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product and the total overhead information: 

 

Setups

Inspections

Assembly (DLH)

Small Lamps – 3,000 units

8,000

9,000

16,000

Desk Lamps – 6,000 units

16,000

15,000

12,000

 

 

 

 

 

 

 

 

 

Activity Pool

Activity Base

Budgeted Amount

Setups

24,000

$60,000

Inspections

24,000

$120,000

Assembly (DLH)

28,000

$280,000

 

 

 

Calculate the overhead per unit to be charged to small lamps. A. $75.00B. $39.17C. $38.33D. $17.50

 

90. The Bonnington Company manufactures small lamps and desk lamps. The following shows the activities per product: 

 

Setups

Inspections

Assembly (DLH)

Small Lamps – 4,000 units

4,000

15,000

6,000

Desk Lamps – 8,000 units

16,000

7,000

20,000

 

 

 

 

 

 

 

 

Using the following information prepared by the Bonnington Company, determine the total factory overhead to be charged to small lamps. 

Activity Pool

Activity Base

Budgeted Amount

Setups

20,000

$80,000

Inspections

22,000

$132,000

Assembly (DLH)

26,000

$416,000

 

 

 

 A. $314,000B. $209,333C. $202,000D. $104,000

 

 

 

91. If selling and administrative expenses are allocated to different products, they should be reported as a A. product costB. factory overhead costC. period costD. cost of goods sold

 

92. Activity-based costing for selling and administrative expenses can also be beneficial in allocating expenses to various products. Which of the following is the best allocation base for help desk costs? A. Number of callsB. Square footage of the help desk officeC. Number of products soldD. Number of employees

 

93. Which of the following is not a reason for banks to use activity-based costing? A. to determine the amounts charged to customers for services providedB. to determine service qualityC. to determine profitability of services providedD. all of the above

 

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

Activity

Activity Rate

Hair Washing

$3.00

Conditioning

$3.50

Chemical Treatment

$25.00

Styling

$10.00

 

 

 

 

Hair Washing

Conditioning

Chemical Treatment

Styling

Hair Cut

1

1

0

0

Complete Style

1

1

0

1

Perms

2

3

1

1

Hi-Lights

3

4

2

1

 

 

 

 

 

Calculate the cost of services for a hair cut. A. $3.00B. $6.50C. $3.50D. $16.50

 

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

Activity

Activity Rate

Hair Washing

$3.00

Conditioning

$3.50

Chemical Treatment

$25.00

Styling

$10.00

 

 

 

 

Hair Washing

Conditioning

Chemical Treatment

Styling

Hair Cut

1

1

0

0

Complete Style

1

1

0

1

Perms

2

3

1

1

Hi-Lights

3

4

2

1

 

 

 

 

 

Calculate the cost of services for a perm. A. $51.50B. $41.50C. $44.50D. $25.00

 

 

 

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