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Question : 139.Rather Bedding makes two types of pillow—down and foam. It : 1302772

Economics

 

 

139.Rather Bedding makes two types of pillow—down and foam. It is currently implementing an activity-based costing system. In the past, all overhead had been applied on the basis of machine hours. The company produces 6,000 down pillows and 18,000 foam pillows per year.

 

Cost PoolDriver and LevelEstimated CostsUse of Driver by Down PillowsUse of Driver by Foam Pillows

Equipment setup360 setups$216,000120 setups240 setups

Materials ordering6,000 orders$60,0002,400 orders3,600 orders

Quality control2,000 inspections$36,000800 inspections1,200 inspections

Machining8,000 machine hours$86,8004,200 machine hours3,800 machine hours

 

Using ABC, what is the cost per machine hour in the machining pool?

A.$10.85 per machine hour

B.$20.67 per machine hour

C.$50.00 per machine hour

D.None of these answer choices are correct.

 

140.Recker Recreational uses activity-based costing. The company produces wooden playground equipment. It has two models manufactured in its Texas plant—swings and slides. The estimated costs and expected activity for each of the overhead activity pools follow:

 

Activity    EstimatedExpected Activity

Cost Pool    CostSwingsSlidesTotal

Activity 1              $15,675              800              300              1,100

Activity 2              $11,900              500              200              700

Activity 3              $36,000              800              400              1,200

 

Which of the following is the rate for Activity 3 that will used to allocate costs to swings?

A.$90

B.$12,000

C.$30

D.There is not enough information provided to determine the answer.

141.Random House uses activity-based costing. The company produces soft and hardcover books. The estimated costs and expected activity for each of the overhead activity pools follow:

 

Activity   EstimatedExpected Activity

Cost Pool   CostHard-CoverSoft-CoverTotal

Activity 1              $15,000              800              700              1,500

Activity 2              $14,900              500              1,500              2,000

Activity 3              $27,600              800              400              1,200

 

How much are total overhead costs to be charged to hardcover books?

A.$30,125

B.$8,000

C.$84,945

D.$25,691

 

142.Hurst Productions uses activity-based costing. The company produces weekly and monthly magazines. The estimated costs and expected activity for each of the activity pools follow:

 

Expected Activity

Cost PoolEstimated CostWeeklyMonthlyTotal

Pressing$24,6006004001,000

Printing              6,250400100500

Binding              9,0008001,2002,000

 

How much pressing cost will be assigned to monthly magazines?

A.$24.60

B.$9,840

C.$61.50

D.None of these answer choices are correct.

 

143.Hurst Productions uses activity-based costing. The company produces weekly and monthly magazines. The estimated costs and expected activity for each of the activity pools follow:

 

Expected Activity

Cost PoolEstimated CostWeeklyMonthlyTotal

Pressing$24,6006004001,000

Printing              6,250400100500

Binding              9,0008001,2002,000

 

How much are the total costs to be allocated to monthly magazines?

A.$16,490

B.$41.60

C.$131.50

D.None of these answer choices are correct.

 

144.PaperPro produces two models of staplers—Executive and Basic. The annual production and sales of Executive and Basic are 800 and 500 units, respectively. The company has traditionally used direct labor hours to apply manufacturing overhead. Executive requires 0.3 labor hours per unit and Basic requires 0.2 labor hours per unit. The company has decided to utilize activity-based costing with three cost pools. Estimated costs for each pool are as follows:

 

Estimated

ActivityOverheadExpected Activity

Cost PoolCostsExecutiveBasicTotal

Assembly$24,025              450              420              870

Packaging16,880              2,000              750              2,750

General Factory32,014              120              150              270

Total$72,919

 

Which of the following is closest to the overhead rate for assembly using activity-based costing?

A.$81.81

B.$53.39

C.$57.20

D.$27.61

 

145.Kamber Designs produces floral bouquets for commercial businesses (i.e. hotels) and uses an activity-based costing system. The company estimated that it would design 15,000 bouquets, make 2,000 deliveries totaling 25,000 miles, and accept 300 online orders. Data concerning overhead costs and activity pools is as follows:

 

Bouquet designs              $60,000

Deliveries              21,000

Online ordering                 6,000

Total$87,000

 

During May, the company made 1,400 bouquets using 1,300 designs, made 420 deliveries, and accepted 30 online orders. Using activity-based costing, what is the approximate overhead cost per bouquet during May?

A.$16.50

B.$7.29

C.$62.14

D.None of these answer choices are correct.

 

146.Gator Dockside produces two products, A and B. The annual production and sales of product A and B are 600 and 400 units, respectively. The company has traditionally used direct labor hours to apply manufacturing overhead. Product A requires 0.5 labor hours per unit and product B requires 1.2 labor hours per unit. The company has decided to utilize activity-based costing with three cost pools. Estimated costs for each pool are as follows:

 

Estimated

ActivityOverheadExpected Activity

Cost PoolCostsProduct AProduct BTotal

Activity 1  $24,000              1,500              500              2,000

Activity 210,800              450              1,350              1,800

General factory19,200              80              320              400

Total$54,000

 

When using activity-based costing, to which of the following amounts is the total overhead cost for one unit of product A closest?

A.$66.00

B.$280.00

C.$40.90

D.$61.35

 

147.Fifth Third Bank is a banking services company that offers several different types of checking accounts. The bank has recently adopted an activity-based costing system to assign costs to its checking accounts. The following data relate to the Mind Your Money checking accounts and the ABC cost pools:

 

Annual number of accounts = 60,000 accounts

Cost PoolCostCost Drivers

Returned check costs               $3,000,000               Number of returned checks

Account reconciliation costs              60,000              Number of account reconciliation requests

New account setup               650,000              Number of new accounts

Archive requests              400,000              Number of archive requests

Web site costs                  195,000              Per account type

Total checking account costs              $4,305,000

 

Annual activity information related to cost drivers:

Cost PoolAll ProductsMind Your Money Checking

Returned checks 200,000 returned checks               18,000

Account reconciliation costs3,000 reconciliation requests               420

New account setups 60,000 new accounts               15,000

Archive requests100,000 archive requests              60,000

Web site costs 10 types of accounts              1

 

How much is the rate to be used to apply the cost of new accounts to each Mind Your Money checking account?

A.$10.83

B.$43.33

C.$71.75

D.$60.39

 

148.Kamber Designs produces floral bouquets for commercial businesses (i.e. hotels) and uses an activity-based costing system. The company estimated that it would design 15,000 bouquets, make 2,000 deliveries totaling 25,000 miles, and accept 300 online orders. Data concerning overhead costs and activity pools is as follows:

 

Bouquet designs              $60,000

Deliveries              21,000

Online ordering                 6,000

Total$87,000

 

During June, the company made 1,500 bouquets using 1,100 designs, made 325 deliveries and accepted 45 online orders. Using activity-based costing, what is the approximate overhead cost per bouquet during June?

A.$7.92

B.$5.81

C.$5

D.None of these answer choices are correct.

 

149.Fifth Third Bank is a banking services company that offers several different types of checking accounts. The bank has recently adopted an activity-based costing system to assign costs to its checking accounts. The following data relate to the Mind Your Money checking accounts and the ABC cost pools:

 

Annual number of accounts = 60,000 accounts

Cost PoolCostCost Drivers

Returned check costs               $3,000,000               Number of returned checks

Account reconciliation costs              60,000              Number of account reconciliation requests

New account setup               650,000              Number of new accounts

Archive requests              400,000              Number of archive requests

Web site costs                  195,000              Per account type

Total checking account costs              $4,305,000

 

Annual activity information related to cost drivers:

Cost PoolAll ProductsMind Your Money Checking

Returned checks 200,000 returned checks               18,000

Account reconciliation costs3,000 reconciliation requests              420

New account setups 60,000 new accounts               15,000

Archive requests100,000 archive requests              60,000

Web site costs 10 types of accounts              1

 

How much is the rate to be used to allocate account reconciliation cost to each Mind Your Money checking account?

A.$20.00

B.$1.00

C.$0.14

D.$142.85

 

150.Retirement Planning is a consulting firm with clients across the nation. Within the company is a travel group that arranges flights and hotel accommodations for its 250 consultants. The overhead cost of operating the travel group amounts to approximately $204,000 annually. Recently the company conducted an ABM study that has determined the following:

                  Each consultant completed approximately 15 business trips per year.

                  On average, 17 trips are scheduled, with 2 trips cancelled and rescheduled.

                  Benchmarking with a Retirement Planning’s client indicates that the client incurs a cost of $60 per scheduled trip to book travel.

 

How much overhead cost should be allocated to each completed trip?

A.$54.40

B.$48.00

C.$60.00

D.None of these answer choices are correct.

 

151.Sanford Tracking has two production plants. Recently, the company conducted an ABM study to determine the cost of activities involved in processing orders for parts at each of the plants. How might an operations manager use this information to manage the cost of processing orders?

A.By closing down the plant with the highest cost

B.By comparing the cost to process an order at each plant and the nature of the orders to determine if costs are out of control—if out of control, investigate

C.By setting up an ABC costing system

D.By including all manufacturing overhead in a single cost pool to reduce the cost of analysis

 

 

 

 

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July 1, 2023
    

 

Multiple Choice Questions 

44.The classification and normal balance of the accounts receivable account is:   

A. an asset with a credit balance

 

B. a liability with a debit balance

 

C. an asset with a debit balance

 

D. a revenue with a debit balance

 

 

 

45.The classification and normal balance of the salaries expense account is:   

A. an expense with a credit balance

 

B. a liability with a debit balance

 

C. an asset with a debit balance

 

D. an expense with a debit balance

 

 

 

46.A business earns $4,000 from various charge account clients. To record this transaction, the business would:   

A. Debit Accounts Receivable; Credit Cash

 

B. Debit Accounts Receivable; Credit Revenue

 

C. Debit Cash; Credit Accounts Receivable

 

D. Debit Accounts Payable; Credit Revenue

 

 

 

47.Select the entry below that records paying employees for work performed during the pay period?   

A. debit Cash and credit Salary Expense

 

B. debit Salary Expense and credit Cash

 

C. debit Salary Expense and credit Accounts Receivable

 

D. debit Cash, and credit Accounts Receivable

 

 

 

48.A business receives a bill for utilities but decides to pay it next month. The business would record the receipt of the bill by:   

A. Debiting Accounts Payable; Crediting Utilities Expense

 

B. Debiting Utilities Expense; Crediting Accounts Receivable

 

C. Debiting Utilities Expense; Crediting Accounts Payable

 

D. Debiting Utilities Expense; Crediting Cash

 

 

 

49.A business purchases equipment costing $4,000. They pay $1,500 right away and charge the remaining amount. To record this transaction, the business would:   

A. Debit Equipment $2,500; Credit Accounts Payable $2,500

 

B. Debit Equipment $1,500; Credit Cash $1,500

 

C. Debit Equipment $4,000; Credit Accounts Payable $4,000

 

D. Debit Equipment $4,000; Credit Cash $1,500 and Credit Accounts Payable $2,500

 

 

 

50.A business performed $6,000 of services. Their customer paid $1,000 of the amount owed right away but charged the remaining amount. To record this transaction, the business would:   

A. Debit Cash $1,000 and Debit Accounts Receivable $5,000; Credit Fee Income $6,000

 

B. Debit Accounts Receivable $5,000 and; Credit Fee Income $5,000

 

C. Debit Cash $1,000; Credit Fee Income $1,000

 

D. Debit Cash $1,000; Credit Accounts Payable $5,000 and Credit Fee Income $6,000

 

 

 

51.Which of the following entries records the withdrawal of cash for personal use by Ty Knott, the owner of a business?   

A. debit Cash and credit Ty Knott, Capital

 

B. debit Cash and credit Salary Expense

 

C. debit Salary Expense and credit Cash

 

D. debit Ty Knott, Drawing, and credit Cash

 

 

 

52.The ending capital balance appears on which of the following statement(s)?   

A. Statement of owner's equity

 

B. Income Statement

 

C. Statement of owner's equity and balance sheet

 

D. Statement of owner's equity and income statement

 

 

 

53.On a statement of owner's equity, beginning capital is $30,000, Net Income for the year is $11,000 and Drawing for the year is $6,000, the ending capital amount would be   

A. $30,000.

 

B. $35,000.

 

C. $47,000.

 

D. $25,000.

Beginning Capital, $30,000 + Net Income, $11,000 - Drawing, $6,000 = Ending Capital, $35,000.

 

 

 

default image
July 1, 2023
    

 

Multiple Choice Questions 

44.The classification and normal balance of the accounts receivable account is:   

A. an asset with a credit balance

 

B. a liability with a debit balance

 

C. an asset with a debit balance

 

D. a revenue with a debit balance

 

 

 

45.The classification and normal balance of the salaries expense account is:   

A. an expense with a credit balance

 

B. a liability with a debit balance

 

C. an asset with a debit balance

 

D. an expense with a debit balance

 

 

 

46.A business earns $4,000 from various charge account clients. To record this transaction, the business would:   

A. Debit Accounts Receivable; Credit Cash

 

B. Debit Accounts Receivable; Credit Revenue

 

C. Debit Cash; Credit Accounts Receivable

 

D. Debit Accounts Payable; Credit Revenue

 

 

 

47.Select the entry below that records paying employees for work performed during the pay period?   

A. debit Cash and credit Salary Expense

 

B. debit Salary Expense and credit Cash

 

C. debit Salary Expense and credit Accounts Receivable

 

D. debit Cash, and credit Accounts Receivable

 

 

 

48.A business receives a bill for utilities but decides to pay it next month. The business would record the receipt of the bill by:   

A. Debiting Accounts Payable; Crediting Utilities Expense

 

B. Debiting Utilities Expense; Crediting Accounts Receivable

 

C. Debiting Utilities Expense; Crediting Accounts Payable

 

D. Debiting Utilities Expense; Crediting Cash

 

 

 

49.A business purchases equipment costing $4,000. They pay $1,500 right away and charge the remaining amount. To record this transaction, the business would:   

A. Debit Equipment $2,500; Credit Accounts Payable $2,500

 

B. Debit Equipment $1,500; Credit Cash $1,500

 

C. Debit Equipment $4,000; Credit Accounts Payable $4,000

 

D. Debit Equipment $4,000; Credit Cash $1,500 and Credit Accounts Payable $2,500

 

 

 

50.A business performed $6,000 of services. Their customer paid $1,000 of the amount owed right away but charged the remaining amount. To record this transaction, the business would:   

A. Debit Cash $1,000 and Debit Accounts Receivable $5,000; Credit Fee Income $6,000

 

B. Debit Accounts Receivable $5,000 and; Credit Fee Income $5,000

 

C. Debit Cash $1,000; Credit Fee Income $1,000

 

D. Debit Cash $1,000; Credit Accounts Payable $5,000 and Credit Fee Income $6,000

 

 

 

51.Which of the following entries records the withdrawal of cash for personal use by Ty Knott, the owner of a business?   

A. debit Cash and credit Ty Knott, Capital

 

B. debit Cash and credit Salary Expense

 

C. debit Salary Expense and credit Cash

 

D. debit Ty Knott, Drawing, and credit Cash

 

 

 

52.The ending capital balance appears on which of the following statement(s)?   

A. Statement of owner's equity

 

B. Income Statement

 

C. Statement of owner's equity and balance sheet

 

D. Statement of owner's equity and income statement

 

 

 

53.On a statement of owner's equity, beginning capital is $30,000, Net Income for the year is $11,000 and Drawing for the year is $6,000, the ending capital amount would be   

A. $30,000.

 

B. $35,000.

 

C. $47,000.

 

D. $25,000.

Beginning Capital, $30,000 + Net Income, $11,000 - Drawing, $6,000 = Ending Capital, $35,000.

 

 

 

default image
July 1, 2023
    

 

Multiple Choice Questions 

44.The classification and normal balance of the accounts receivable account is:   

A. an asset with a credit balance

 

B. a liability with a debit balance

 

C. an asset with a debit balance

 

D. a revenue with a debit balance

 

 

 

45.The classification and normal balance of the salaries expense account is:   

A. an expense with a credit balance

 

B. a liability with a debit balance

 

C. an asset with a debit balance

 

D. an expense with a debit balance

 

 

 

46.A business earns $4,000 from various charge account clients. To record this transaction, the business would:   

A. Debit Accounts Receivable; Credit Cash

 

B. Debit Accounts Receivable; Credit Revenue

 

C. Debit Cash; Credit Accounts Receivable

 

D. Debit Accounts Payable; Credit Revenue

 

 

 

47.Select the entry below that records paying employees for work performed during the pay period?   

A. debit Cash and credit Salary Expense

 

B. debit Salary Expense and credit Cash

 

C. debit Salary Expense and credit Accounts Receivable

 

D. debit Cash, and credit Accounts Receivable

 

 

 

48.A business receives a bill for utilities but decides to pay it next month. The business would record the receipt of the bill by:   

A. Debiting Accounts Payable; Crediting Utilities Expense

 

B. Debiting Utilities Expense; Crediting Accounts Receivable

 

C. Debiting Utilities Expense; Crediting Accounts Payable

 

D. Debiting Utilities Expense; Crediting Cash

 

 

 

49.A business purchases equipment costing $4,000. They pay $1,500 right away and charge the remaining amount. To record this transaction, the business would:   

A. Debit Equipment $2,500; Credit Accounts Payable $2,500

 

B. Debit Equipment $1,500; Credit Cash $1,500

 

C. Debit Equipment $4,000; Credit Accounts Payable $4,000

 

D. Debit Equipment $4,000; Credit Cash $1,500 and Credit Accounts Payable $2,500

 

 

 

50.A business performed $6,000 of services. Their customer paid $1,000 of the amount owed right away but charged the remaining amount. To record this transaction, the business would:   

A. Debit Cash $1,000 and Debit Accounts Receivable $5,000; Credit Fee Income $6,000

 

B. Debit Accounts Receivable $5,000 and; Credit Fee Income $5,000

 

C. Debit Cash $1,000; Credit Fee Income $1,000

 

D. Debit Cash $1,000; Credit Accounts Payable $5,000 and Credit Fee Income $6,000

 

 

 

51.Which of the following entries records the withdrawal of cash for personal use by Ty Knott, the owner of a business?   

A. debit Cash and credit Ty Knott, Capital

 

B. debit Cash and credit Salary Expense

 

C. debit Salary Expense and credit Cash

 

D. debit Ty Knott, Drawing, and credit Cash

 

 

 

52.The ending capital balance appears on which of the following statement(s)?   

A. Statement of owner's equity

 

B. Income Statement

 

C. Statement of owner's equity and balance sheet

 

D. Statement of owner's equity and income statement

 

 

 

53.On a statement of owner's equity, beginning capital is $30,000, Net Income for the year is $11,000 and Drawing for the year is $6,000, the ending capital amount would be   

A. $30,000.

 

B. $35,000.

 

C. $47,000.

 

D. $25,000.

Beginning Capital, $30,000 + Net Income, $11,000 - Drawing, $6,000 = Ending Capital, $35,000.

 

 

 

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customer #17823
Human Resource Management, 2 pages
Research paper
August 5, 2021
    

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customer #12372
Public Relations, 3 pages
Dissertation
August 5, 2021
    

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customer #12376
Journal article, 20 pages
Coursework
August 5, 2021
    

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customer #19266
Political Science, 6 pages
Admission Essay
August 5, 2021
    

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customer #11437
Tourism, 1 page
Discussion Essay
August 5, 2021
    

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customer #12692
Philosophy, 5 pages
Report
August 5, 2021
    

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customer #10923
Psychology, 4 pages
Essay (any type)
August 5, 2021
    

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customer #17823
Business, 8 pages

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

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Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

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Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

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Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

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Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

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