chun Quiz 2 - Question 1 1 out of 1 points Answer the...

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Unformatted text preview: Question 1 1 out of 1 points Answer the following questions using the information below: A manufacturing firm is able to produce 1,000 pairs of shoes per hour, at maximum efficiency. There are three eight-hour shifts each day. Due to unavoidable operating interruptions, production averages 800 units per hour. The plant actually operates only 27 days per month. What is the practical capacity for the month of April? Answer Selected Answer: Question 2 1 out of 1 points Theoretical capacity allows for: Answer Selected Answer: Question 3 1 out of 1 points Design costs are an example of: Answer Selected Answer: Question 4 1 out of 1 points Activity-based costing is most likely to yield benefits for companies with all of the following characteristics EXCEPT: Answer Selected Answer: Question 5 0 out of 1 points Answer the following questions using the information below: Barnes Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled: Product Number of Setups Number of Components Number of Direct labour hours Standard 22 8 375 Deluxe 28 12 225 The activity-based costing implementation team have estimated the follo wing two activity related overhead cost pools for Barnes Corporation: Setup Activity overhead cost pool Components Activity overhead cost pool Total overhead Overhead costs $20,000 $40,000 $60,000 Assume a traditional costing system applies the $60,000 of overhead costs based on direct labour hours. What is the total amount of overhead costs assigned to the standard model? Answer Selected Answer: Question 6 1 out of 1 points Answer the following questions using the information below: Ernsting Printers has contracts to complete weekly supplements required by forty-six customers. For the year 20X5, manufacturing overhead cost estimates total $420,000 for an annual production capacity of 12 million pages. For 20X5 Ernsting Printers has decided to evaluate the use of additional cost pools. After analysing manufacturing overhead costs, it was determined that number of design changes, setups, and inspections are the primary manufacturing overhead cost drivers. The following information was gathered during the analysis: Cost Pool Manufacturing overhead costs Activity level Design changes $60,000 300 design changes Setups 320,000 5,000 setups Inspections 40,000 8,000 inspections Total manufacturing overhead costs $420,000 During 20X5, two customers, Wealth Managers and Health Systems, are expected to use the following printing services: Activity Wealth Managers Health Systems Pages 60,000 76,000 Design changes 10 Setups 20 10 Inspections 30 38 Assuming activity-cost pools are used, what are the activity-cost driver rates for design changes, setups, and inspections cost pools?...
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chun Quiz 2 - Question 1 1 out of 1 points Answer the...

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