1. Which of the following activities would be classified as a batch­level activity? Circle One: Milling a part required for the final product. Setting up equipment. Designing a new product. Training employees. 2. Which of the following is not a limitation of activity­based costing? Circle One. Maintaining an activity­based costing system is more costly than maintaining a traditional direct labor­based costing system. In practice, most managers insist on fully allocating all costs to products, customers, and other costing objects in an activity­based costing system. This results in overstated costs. More accurate product costs may result in increasing the selling prices

of some products. Changing from a traditional direct labor­based costing system to an activity­based costing system changes product margins and other key performance indicators used by managers. Such changes are often resisted by managers. 3. Designing a new product is an example of a: Unit­level activity.

Organization­sustaining activity. Batch­level activity. Product­level activity. 4. Bulmash Corporation uses an activity­based costing system with the following three activity cost pools: Activity Cost Pool

Total Activity

Fabrication

40,000 machine­hours

Order processing

500 orders

Other

Not applicable The Other activity cost pool is used to accumulate costs of idle capacity and organization­sustaining costs.

The company has provided the following data concerning its costs:

Wages and salaries $420,000 Depreciation $100,000 Occupancy $120,000 Total $640,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Fabricatio

Tota Order Processing Other

n

l

100

Wages and salaries 5%

80%

15%

%

100

Depreciation

15%

45%

40%

%

100

Occupancy

25%

50%

25%

% The activity rate for the Fabrication activity cost pool is closest to: $2.40 per machine­hour $1.65 per machine­hour 5. $0.80 per machine­hour $4.00 per machine­hour Jordan Corporation uses an activity­based costing system with the following three activity cost pools: Activity Cost Pool

Fabrication Total Activity

70,000 machine­hours Order processing

500 orders

Other

Not applicable The Other activity cost pool is used to accumulate costs of idle capacity and organization­sustaining costs.

The company has provided the following data concerning its costs:

Wages and salaries $420,000

Depreciation $160,000

Occupancy $200,000 Total $780,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Order Fabrication

Other

Total

Processing

Wages and 60%

20%

20%

100%

salaries

Depreciation

5%

60%

35%

100%

Occupancy

25%

50%

25%

100% The activity rate for the Order Processing activity cost pool is closest to: $780 per order $676 per order 6. $312 per order $560 per order Wenston Corporation has provided the following data concerning its overhead costs for the coming year:

Wages and salaries $440,000

Depreciation $120,000

SuperTutor

(15)

Status NEW Posted 01 Jun 2017 04:06 AM My Price 10.00

-----------

Attachments

file 1496291681-Solutions file.docx preview (51 words )

S-----------olu-----------tio-----------ns -----------fil-----------e -----------Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k y-----------ou -----------for----------- yo-----------ur -----------int-----------ere-----------st -----------and----------- bu-----------yin-----------g m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l b-----------e q-----------uic-----------kly----------- on-----------lin-----------e a-----------nd -----------giv-----------e y-----------ou -----------exa-----------ct -----------fil-----------e a-----------nd -----------the----------- sa-----------me -----------fil-----------e i-----------s a-----------lso----------- se-----------nt -----------to -----------you-----------r e-----------mai-----------l t-----------hat----------- is----------- re-----------gis-----------ter-----------ed -----------onÂ----------- th-----------is -----------web-----------sit-----------e -----------Tha-----------nk -----------you----------- -----------

Not Rated(0)

• Buy Answer