ACCT 2302 (Ch. 11 Answers)

ACCT 2302 (Ch. 11 Answers) - 1 Managers depend on product...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1. Managers depend on product costing to make decisions regarding continuing operations, advertising, and product mix. A) True B) False 2. When a plant-wide factory overhead rate is used, the total overhead costs allocated to all products is the same. A) True B) False 3. If the activities causing overhead costs are different across different departments and products, use of a plant-wide factory overhead rate will cause distorted product costs. A) True B) False 4. The single plantwide overhead rate method is very expensive to apply. A) True B) False 5. Multiple production department factory overhead rates are more accurate and more costly than are plant-wide factory overhead rates. A) True B) False 6. Activity cost pools are assigned to products, using factory overhead rates for each activity. A) True B) False 7. Activity rates are computed by dividing the cost budgeted for each activity pool by the estimated activity base for that pool. A) True B) False 8. Activity based costing is much easier to apply than single plantwide factory overhead allocation. A) True B) False 9. The selection of the factory overhead allocation method is important because the method selected determines the accuracy of the product cost. A) True B) False 10. Multiple production department factory overhead rates are most useful when production departments differ in their manufacturing processes. A) True B) False 11. A plant-wide factory overhead rate assumes that all overhead is directly related to one activity representing the entire plant. A) True B) False 12. Estimated activity-base usage quantities are the total activity-base quantities related to each product A) True B) False Chapter 11 Review
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
13. Direct labor hours is not a cost pool that is regularly used in the activity-based costing method. A) True B) False 14. Common allocation bases are A) direct labor dollars, direct labor hours, and square footage B) direct labor dollars, direct labor hours, machine hours C) direct labor dollars, direct labor hours, and machine dollars D) machine dollars, direct labor dollars, machine hours 15. The Cunningham Factory has determined that its budgeted factory overhead budget for the year is $6,750,000 and budgeted direct labor hours are 5,000,000. If the actual direct labors for the period are 180,000 and direct labor hours is the allocation base, the factory overhead allocation using the single plantwide factory overhead rate is? A) $375,000 B) $133,333 C) $243,000 D) cannot be determined 16. Using multiple department factory overhead rates instead of a single plant-wide factory overhead rate: A) results in more accurate product costs B) results in distorted product costs C) is simpler and less costly D) applies overhead costs to all departments equally 17. Scoresby Co. uses 3 machine hours and 1 direct labor hour to produce Product X. It uses 4 machine hours and 8 direct labor hours to produce Product Y. Scoresby's Assembly and Finishing Departments have factory overhead rates of $240
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/01/2011 for the course ACCT 2302 taught by Professor Dr. during the Spring '11 term at University of Houston-Victoria.

Page1 / 7

ACCT 2302 (Ch. 11 Answers) - 1 Managers depend on product...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online