ACC221sampleexam03sp08answerkey

ACC221sampleexam03sp08answerkey - ACC 221 Cost Accounting...

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ACC 221 Cost Accounting Sample Exam 3 Spring 2008 Name :_____________Key __________________________________________________ Instructions for Part 1: Indicate the response you believe is the most correct for the multiple choice (MC) questions by circling the appropriate letter to indicate your answer. No partial credit can be earned on multiple choice questions. Therefore, choose your answers carefully. Only choose one response for MC questions, indicating two selections will invalidate your answer. Instructions for Part 2: You will be given problem questions. When attempting a problem, please be sure your handwriting is legible. No points will be earned of illegible work. Enter your answers to problem immediately following the problem. Multiple Choice (3 points each, total 90 points) 1. Production order processing is an example of a: A) Unit-level activity. B) Batch-level activity. C) Product-level activity. D) Organization-sustaining activity. 1
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2.Hochberg Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication. ........................... 30,000 machine-hours Order processing. .................. 300 orders Other. .................................... Not applicable The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. The company has provided the following data concerning its costs: Wages and salaries. ............... $340,00 0 Depreciation. ......................... 160,000 Occupancy. ........................... 220,000 Total. ..................................... $720,00 0 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Fabricatio n Order Processing Othe r Total Wages and salaries. ................ 30% 60% 10% 100% Depreciation. .......................... 15% 50% 35% 100% Occupancy. ............................. 15% 55% 30% 100% The activity rate for the Fabrication activity cost pool is closest to: A) $5.30 per machine-hour B) $3.60 per machine-hour C) $7.20 per machine-hour D) $4.80 per machine-hour Wages and Salaries 340,000*0.3 = 102,000 Depreciation 160,000*0.15 = 24,000 Occupancy 220,000*0.15 = 33,000 $159,000 Divided by 30,000 MH $5.30 per MH 2
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3. Poskey Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system: Costs: Wages and salaries. ............ $400,00 0 Depreciation. ...................... 160,000 Utilities. ............................. 100,000 Total. .................................. $660,00 0 Distribution of resource consumption: Activity Cost Pools Assembl y Setting Up Othe r Total Wages and salaries. ............. 40% 40% 20% 100% Depreciation. ....................... 20% 35% 45% 100% Utilities. ............................... 25% 55% 20% 100% How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool? A) $187,000
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ACC221sampleexam03sp08answerkey - ACC 221 Cost Accounting...

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