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GNB13eCh08Exam - Garrison 13e Practice Exam Chapter 8 Print...

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Garrison 13e Practice Exam – Chapter 8 Print these pages. Answer each of the following questions, explaining your answers or showing your work, as appropriate, and then compare your solutions to those provided at the end of the practice exam. 1. Lubelchek Company uses activity-based costing to determine the costs of its two products: A and B. The estimated total cost and expected activity for one of the company's three activity cost pools are as follows: Expected Activity Estimated Cost Product A Product B $28,000 400 300 Part (a) What is the activity rate under the activity-based costing system for this activity? Part (b) How much total cost will be assigned to Products A and B for this activity? 2. Barabanova Company has two products: A and B. The annual production and sales level of Product A is 18,188 units. The annual production and sales level of Product B is 31,652. The company uses activity-based costing and has prepared the following analysis showing the
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