Chapter 8 Review Questions

Chapter 8 Review Questions - three activity cost pools: The...

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Chapter 8 Review Questions 1. Rank the following methods of assigning overhead costs from least accurate to most accurate. A. departmental rates, plantwide rate, activity-based costing B. plantwide rate, departmental rates, activity-based costing C. plantwide rate, activity-based costing, departmental rates D. activity-based costing, departmental rates, plantwide rate E. activity-based costing, plantwide rate, departmental rates 2. Testing a prototype of a new product is an example of a: A. Unit-level activity. B. Batch-level activity. C. Product-level activity. D. Organization-sustaining activity. 3. The clerical activity associated with processing purchase orders to produce an order for a standard product is an example of a: A. Unit-level activity. B. Batch-level activity. C. Product-level activity. D. Organization-sustaining activity.
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4. Daniele Corporation uses an activity-based costing system with the following
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Unformatted text preview: three activity cost pools: 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: The distribution of resource consumption across activity cost pools is given below: The activity rate for the Fabrication activity cost pool is closest to: A. $3.72 per machine-hour B. $4.44 per machine-hour C. $7.44 per machine-hour D. $1.24 per machine-hour Total Fabrication Cost: 5. Kassabian 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: How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool? A. $314,000 B. $272,333 C. $215,000 D. $430,000 Total Assembly Cost:...
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This note was uploaded on 07/10/2011 for the course BUS 450 taught by Professor Baker during the Spring '11 term at San Diego State.

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Chapter 8 Review Questions - three activity cost pools: The...

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