The costs that are most basic to map directly to assets areA. straight materials and also direct labor.B. straight labor and overhead.C. straight materials and also overhead.D. namong the above; all three expenses are equally straightforward to trace to the product.

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Which of the adhering to is not a product-level activity?A. Material handlingB. Inventory managementC. Engineering changesD. Product design
Which of the following is not a benefit of activity-based costing?A. Enhanced manage over overhead costsB. Better monitoring decisionsC. Less costly to useD. More specific product costing
Use of activity-based costing will bring about the development ofA. one plantwide activity-based overhead price.B. no overhead rates; overhead rates are not provided in activity-based costing.C. one overhead rate based upon direct labor hours.D. multiple activity-based overhead rates.
Which of the adhering to is not a batch-level activity?A. Equipment setupsB. Purchase orderingC. InspectionD. Assembling
Gant Accounting percreates two forms of services, Audit and also Tax. Gant"s overhead costs consist of computer system assistance, $318000; and also legal assistance, $159000. Information on the two services is: Direct labor cost: $50000 ( Audit); $100000 (Tax)CPU minutes: 40000 (Audit); 10000 (Tax)Legal hours used: 200 (Audit); 800 (Tax)Overhead applied to taxes solutions utilizing traditional costing isA. $190800.B. $286200.C. $318000.D. $159000.
Which of the complying with factors would certainly indicate a switch to activity-based costing?A. The manufacturing process has been stable.B. provided by the existing system.C. Product lines similar in volume and production complexity.D. Overhead costs constitute a far-reaching percent of full prices.
An activity that has actually a direct cause-result partnership via the sources consumed is a(n)A. overhead rate.B. cost driver.C. cost pool.D. product activity.
Foxx Company type of incurs $350000 overhead costs every year in its 3 main departments, setup ($20000), machining ($235000), and packing ($95000). The setup department performs 40 setups per year, the machining department functions 5000 hrs per year, and the packing department packs 500 orders per year. Indevelopment about Foxx"s two commodities is as follows:Number of setups: 20 (Product A1); 20 (Product B1)Machining hours: 1000 (Product A1); 4000 (Product B1)Orders packet: 150 (Product A1); 350 (Product B1)Number of assets manufactured: 600 (Product A1); 400 (Product B1)Using ABC, exactly how a lot overhead is assigned to Product B1 each year?A. $175000B. $264500C. $280000D. $140000
For its inspecting cost pool, Ellsworth, Inc. intended overhead cost of $500000 and 4000 inspections. The actual overhead price for that price pool was $580000 for 5000 inspections. The activity-based overhead rate offered to asauthorize the expenses of the inspecting price pool to commodities isA. $125 per inspection.B. $145 per inspection.C. $116 per inspection.D. $100 per inspection.
Boswell Company kind of manufactures 2 products, Regular and Supreme. Boswell"s overhead costs consist of machining, $1400000; and assembling, $700000. Information on the two products is:Direct labor hours: 10000 (Regular); 15000 (Supreme)Machine hours: 10000 (Regular); 30000 (Supreme)Number of parts: 90000 (Regular); 160000 (Supreme)Overhead applied to Regular utilizing activity-based costing isA. $602000.B. $840000.C. $1498000.D. $1260000.
Which of the complying with is not a unit-level activity?A. Purchase orderingB. PaintingC. AssemblingD. Sewing
What periodically makes implementation of activity-based costing tough in company sectors isA. attempting to reduce or get rid of non-value-added tasks.B. the labeling of activities as value-included.C. identifying tasks, activity cost plus, and price chauffeurs.D. that a bigger propercent of overhead prices are company-wide expenses.
Which finest defines the circulation of overhead expenses in an activity-based costing system?A. Overhead costs → task price pools → price drivers → productsB. Overhead prices → productsC. Overhead expenses → machine hrs → productsD. Overhead expenses → straight labor expense or hours → products
Which of the adhering to is not a batch-level activity?A. Equipment setupsB. InspectionC. Purchase orderingD. Assembling
Which of the complying with is true around activity-based costing?A. Less expense poolsB. More costly to useC. Eliminates arbitrary allocationsD. Same base as typical costing
Gant Accounting performs 2 types of solutions, Audit and Tax. Gant"s overhead prices consist of computer system support, $366000; and also legal support, $180000. Indevelopment on the two services is:Direct labor cost: $50000 (Audit); $100000 (Tax) CPU minutes: 40000 (Audit); 10000 (Tax) Legal hours used: 200 (Audit); 800 (Tax) Gant Accounting percreates taxation solutions for Cathy Lane. Direct labor price is $1200; 600 CPU minutes were used; and 1 legal hour was offered. What is the total expense of the Lane job using activity-based costing?A. $5772B. $6192C. $4392D. $4572
Which of the adhering to is not a batch-level activity?A. Equipment setupsB. InspectionC. Materials handlingD. Engineering changes
Companies that switch to ABC often uncover they haveA. been overpricing some products.B. perhaps losing industry share to rivals. C. been sacrificing profitcapability by underpricing some commodities.D. all of the these answers are correct.

See more: Which Of The Following Is Not An Example Of Uniform Circular Motion

A well-designed activity-based costing mechanism starts withA. identifying the activity-price pools.B. analyzing the activities perdeveloped to manufacture a product.C. computer the activity-based overhead price.D. assigning overhead prices to commodities.

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