njain, I understand that you keep a larger percentage of your


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njain, I understand that you keep a larger percentage of your tip then what get paid for answering an actual question. so I will go like this: $15 + $75 TIP 15 questions. Multiple Choice. All you have to do is select the right answer. 611 Quiz 3.docx 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 Occupancy $160,000 Total $720,000 The company has an activity­based costing system with the following three activity cost pools and estimated activity for the coming year: Activity Cost Pool Total Activity Assembly 40,000 labor­hours Order processing 600 orders Other Not applicable The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Fabrication Order Processing Other Wages and salaries 40% 35% 25% Depreciation 20% 30% 50% Occupancy 10% 65% 25% The activity rate for the Order Processing activity cost pool is closest to: $520 per order $490 per order $420 per order $780 per order 7. Bullets Corporation uses an activity­based costing system with three activity cost pools. The company has

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