Question : 122.Refer to the data above. How much overhead cost will : 1258532

 

122.Refer to the data above. How much overhead cost will be assigned to the dessert bar product line using activity-based costing (ABC)?    

A. $340,750

B. $247,818

C. $16,000

D. $297,500

E. $313,500

123.A company identified the following partial list of activities, costs, and activity drivers expected for the next year: 

ActivityExpected CostsCost Driver

Extrusion costs$83,600Number batches made

Handling costs$8,800Number of orders filled

Packaging costs$40,500Number of units made

 

Product AProduct B

Production volume750,000 units600,000 units

Batches made200 batches750 batches

Orders filled75200

Calculate activity rates for each of the three activities using activity-based costing (ABC).    

A. Extrusion: $304 per batch; handling: $32 per unit; packaging: $.03 per unit.

B. Extrusion: $88 per batch; handling: $32 per order; packaging: $.03 per unit.

C. Extrusion: $88 per order; handling: $32 per unit; packaging: $.03 per batch.

D. Extrusion: $418 per batch; handling: $117.33 per order; packaging: $.054 per unit.

E. Extrusion: $118.13 per batch; handling: $44 per order; packaging: $.0675 per unit.

124.A company identified the following partial list of activities, costs, and activity drivers expected for the next year: 

ActivityExpected CostsCost Driver

Extrusion costs$83,600Number batches made

Handling costs$8,800Number of orders filled

Packaging costs$40,500Number of units made

 

Product AProduct B

Production volume750,000 units600,000 units

Batches made200 batches750 batches

Orders filled75200

How much overhead in total will be assigned to the Product A line using activity based costing?  A. $42,500.

B. $132,900.

C. $90,400.

D. $66,000.

E. $66,450.

125.Which of the following would not be considered a product cost?    

A. Direct material costs.

B. Factory supervisor’s salary.

C. Direct labor costs.

D. Budget accountant’s salary.

E. Manufacturing overhead costs.

126.The use of which of the following costing systems is most likely to reduce over- or under-costing, and keep it to a minimum?    

A. Departmental overhead allocation rates

B. Plantwide overhead rate

C. Activity-based costing

D. Traditional costing system

127.Which of the following statements is true of activity-based costing?   

A. ABC ignores the allocation of marketing costs.

B. ABC classifies some indirect costs as direct costs.

C. ABC is more likely to result in big differences from a traditional costing system if the business makes only one product rather than multiple products.

D. Activities are the cost objects of the second stage of ABC.

128.ABC assumes all costs are ________ because over the long run the company can adjust the amount of assets utilized.   

A. variable

B. fixed

C. direct

D. nondiscretionary

E. committed

129.Put the following ABC implementation steps in order ________.A Use the activity overhead rates to assign overhead costs to cost objects.B Compute the allocation rates.C Trace overhead costs to cost pools.D Identify the activities and the overhead costs they cause.   

A. DACB

B. DBCA

C. BADC

D. CDAB

E. DCBA

130.________ is considered while choosing a cost allocation base for activity costs in ABC costing.   

A. The marketing strategy of the products being produced

B. The product sales price

C. The availability of reliable data and metrics

D. The number of employees in direct labor

131.Would the following activities at a manufacturer of shampoo be best classified as unit-level, batch-level, product-level, or facility level activities? 

A.BatchBatch

B.UnitUnit

C.ProductBatch

D.ProductUnit

A. Choice A

B. Choice B

C. Choice C

D. Choice D