final (2) - Answer all of the following questions Question...

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Answer all of the following questions Question No.1: (10 marks): State whether each of the following statements are True or False: No. Statement True False 1 Activity-based costing is a costing method that is designed to provide managers with cost information for strategic and other decisions that potentially affect only variable costs. 2 Unit- level production activities are performed each time a unit is made. 3 An activity – based costing system is generally easier to set up and run than a traditional cost system. 4 Customer-level activities relate to specific customers and include activities such as sales calls, catalog mailing, and general technical support. 5 In activity –based costing, all manufacturing costs are assigned to products, even manufacturing costs that are not caused by products. Question No. 2: (6 marks) Freeman Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated manufacturing overhead would be $150,000 and direct labor hours would be 10,000. The actual figures for the year were $186,000 for manufacturing overhead and 12,000 direct labor hours. Required: Calculate the over or under applied overhead for the year. 1
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Question No. 3:(8 marks): Geneva Steel Corporation produces large sheets of heavy gauge steel. The company showed the following amounts relating to its production for the year just completed: Direct materials used in production . .. $110,000 Direct labor costs for the year . ...... $ 55,000 Work in process, beginning . ........... $ 22,000 Finished goods, beginning . ............ $ 45,000 Cost of goods available for sale . ..... $288,000 Cost of goods sold . ......................... $238,000 Work in process, ending . .............. $16,000 Required: A) The balance of the finished goods inventory at the end of the year was:
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This note was uploaded on 01/15/2012 for the course ACC 100 taught by Professor Christaylor during the Spring '09 term at Strathmore University.

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final (2) - Answer all of the following questions Question...

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