Qch05 - Cost Accounting Quiz Chapter 5 Name_ 1. The unique...

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Quiz Chapter 5 Name______________________________________ 1. The unique feature of an ABC system is the emphasis on: A. costing individual jobs. B. department indirect-cost pools. C. multiple cost pools. D. individual activities. 2. Do ABC systems always provide more accurate product costs than conventional cost systems? Why or why not? No! If products are identical, the traditional cost system would do at least as good of a job and sometimes better. 3. Mayan Potters manufactures two sizes of ceramic paperweights, regular and jumbo. The following information applies to their expectations for the planning period: Cost Pool Overhead Costs Activity-cost driver Materials handling $ 45,000 90,000 orders Machine maintenance $300,000 15,000 maintenance hours Setups $270,000 45,000 setups Inspections $105,000 21,000 inspections Total support costs $720,000 Production Estimates Production units: Regular = 8,000,000 units Jumbo = 16,000,000 units Machine-hours = 200,000 mh Labor-hours = 400,000 dlh Mayan Potters uses an ABC system and assigns overhead costs based on the overhead activity information provided above. During October, Mayan produced 700,000 regular ceramic paperweights and Mayan’s production manager counted 2,000 orders; 1,000 maintenance-hours; 2,000 setups; and 2,000 inspections for the regular product line. For October, Mayan’s controller assigned _________ indirect costs to the regular product line. A. $43,000 B. $25,000 C. $34,000 D. None of these answers are correct. 1
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Qch05 - Cost Accounting Quiz Chapter 5 Name_ 1. The unique...

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