ACCT 202 Ex2SampleQuestions

ACCT 202 Ex2SampleQuestions - Accounting 202 SAMPLE TEST...

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

View Full Document Right Arrow Icon
Accounting 202 SAMPLE TEST QUESTIONS – EXAM 2 10/2011 PLEASE NOTE: Some of the following materials have been adapted from Managerial Accounting , 2e, Braun, Tietz, & Harrison Pearson Prentice-Hall, 2010 and its accompanying supplements. THESE SAMPLE TEST QUESTIONS ARE NOT THE SAME AS THE QUESTIONS THAT WILL APPEAR ON YOUR TEST. THEY DO NOT NECESSARILY REFLECT EITHER THE COVERAGE OF TOPICS OR THE LEVEL OF DIFFICULTY OF THE EXAM ITSELF. Chapter 4 1. Cost distortion results in the: A. overcosting of all products. B. undercosting of all products. C. overcosting of some products and undercosting of other products. D. accurate costing of all products. 2. What is the first step in developing an ABC system? A. Identify the primary activities and estimate a total cost pool for each. B. Allocate the costs to the cost object using the activity cost allocation rates. C. Select an allocation base for each activity. D. Calculate an activity cost allocation rate for each activity. 3. Machine set-up would most likely be classified as a: A. unit-level activity. B. batch-level activity. C. product-level activity. D. facility-level activity. 4. Which of the following describes how, in ABC, the activity allocation rate is computed? A. The total estimated activity cost pool is divided by the total estimated activity allocation base. B. The total estimated activity allocation base is divided by the total estimated activity cost pool. C. The total estimated activity allocation base is multiplied by the total estimated activity cost pool. D. You take the total estimated activity allocation base and subtract the total estimated total activity cost pool. USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT TWO QUESTIONS: Pittinger Company manufactures cuckoo clocks and uses an activity-based costing system. Each cuckoo clock consists of 10 separate parts totaling $120 in direct materials, and requires 2.0 hours of machine time to produce. Additional information follows: Activity Allocation Base Cost Allocation Rate Materials handling Number of parts $1.25 per part Machining Machine hours $2.50 per machine hour Assembling Number of parts $0.50 per part Packaging Number of finished units $1.50 per finished unit 5. What is the cost of materials handling per cuckoo clock? A. $3.00 B. $5.00 C. $4.50 D. $12.50 6. What is the total manufacturing cost per cuckoo clock? A. $142.50 B. $ 24.00 C. $144.00 D. $ 25.00 7. The benefits of using the ABC costing system are higher if the company: A. has high indirect costs.
Background image of page 1

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

View Full DocumentRight Arrow Icon
B. produces many different products that use differing amounts of resources. C. produces only one product. D. has high indirect costs and produces many different products that use differing amounts of resources. 8.
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.

Page1 / 9

ACCT 202 Ex2SampleQuestions - Accounting 202 SAMPLE TEST...

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