Question : 132.All of the following examples of facility level costs except: A. Costs : 1258533

 

132.All of the following are examples of facility level costs except:   

A. Costs of cleaning the workplace.

B. Costs of custodial work.

C. Costs of personnel support.

D. Costs of receiving shipments.

E. Costs of providing electricity.

133._____________ costs support the company as a whole.   

A. Batch-level

B. Product-level

C. Unit-level

D. Facility-level

134.Which of the following is a disadvantage of the departmental overhead rate method?   

A. It may fail to accurately assign many overhead costs that are not driven by production volume.

B. Allows each department to have its own overhead rate.

C. Allows each department to have its own allocation base.

D. The departmental overhead rate is usually more accurate in overhead allocations than the plantwide overhead rate.

135.The use of departmental overhead rates will generally result in:   

A. The use of a single cost allocation base

B. The use of a single overhead cost pool for the shop

C. The use of a separate cost allocation base for each department in the shop

D. The use of a separate cost allocation base for each activity in the shop

136.ABC systems ________.   

A. usually will undercost complicated or complex products

B. will limit cost drivers to units of output

C. highlight the different levels of activities

D. will allocate costs based on the overall level of activity

137.ABC costing might lead to:   

A. increasing the sales price of low-volume products

B. increasing the sales price of high-volume products

C. increasing low-volume products that appear to be profitable

D. decreasing high-volume products that appear to be unprofitable

138.Costs incurred in detecting poor quality products are referred to as:   

A. appraisal costs

B. external failure costs

C. internal failure costs

D. prevention costs

139.West Company estimates that overhead costs for the next year will be $5,240,000 for indirect labor and $550,000 for factory utilities. The company uses machine hours as its overhead allocation base. If 150,000 machine hours are planned for this next year, what is the company’s plantwide overhead rate?   

A. $.0259 per machine hour.

B. $34.93 per machine hour.

C. $38.60 per machine hour.

D. $3.67 per machine hour.

E. $.2727 per machine hour.

140.The following data relates to Mangini Company’s estimated amounts for next year. 

Estimated:Department 1Department 2

Manufacturing overhead costs$320,000$400,000

Direct labor hours65,000 DLH75,000 DLH

Machine hours2,000 MH2,500 MH

What is the company’s plantwide overhead rate if machine hours are the allocation base? (Round to two decimal places.)    

A. $200.00 per MH

B. $150.00 per MH

C. $160.00 per MH

D. $31.11 per MH

E. $5.14 per MH

141.Compute Tasty’s departmental overhead rate for the mixing department based on direct labor hours.    

A. $1.50 per DLH.

B. $5.00 per DLH.

C. $0.75 per DLH.

D. $0.60 per DLH.

E. $1.67 per DLH.

142.Compute Tasty’s departmental overhead rate for the mixing department based on machine hours.    

A. $1.50 per MH.

B. $3.33 per MH.

C. $0.60 per MH.

D. $0.50 per MH.

E. $2.00 per MH.

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

A. The total estimated departmental overhead cost

B. The total amount of departmental allocation base

C. The total budgeted overhead cost

D. The actual quantity of the departmental allocation base used by the job

144.Cleveland Choppers manufactures two types of motorcycles, a Base and a Loaded model. The following activity and costs have been gathered: 

ProductNumber of ComponentsNumber of SetupsNumber ofDirect Labor Hrs

Base1520700

Loaded2540600

Overhead costs$27,000$22,500

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. $15,450

 

B. $21,375

 

C. $13,500

 

D. $17,625

145.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 Loaded model?    

A. $31,875

B. $36,000

C. $28,125

D. $34,050

 

 

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