This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Folk Practice Quiz - Chapter 3 1. All of the following are examples of product-level activities except: Human resource management. B) Advertising a product. C) Testing a prototype of a new product. D) Parts administration. 2. All of the following are examples of batch-level activities except: A) Purchase order processing. B) Setting up equipment. C) The clerical activity associated with processing purchase orders to produce an order for a standard product. D) Worker recreational facilities. 3. Angelina Company uses activity-based costing to determine the costs of its two products: A and B. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: Activity Estimated Expected Activity Cost Pool Cost Product A Product B Total Activity 1 $19,800 800 300 1,100 Activity 2 $16,000 2,200 1,800 4,000 Activity 3 $14,000 400 300 700 The activity rate under the activity-based costing system for Activity 3 is closest to: A) $4.00. B) $8.59. C) $18.00. D) $20.00. Solution: Activity rate for Activity 3: $14,000 ÷ 700 = $20.00 4. Flaherty Company uses activity-based costing to compute product costs for external reports. The company has three activity cost pools and applies overhead using predetermined overhead rates for each activity cost pool. Estimated costs and activities for the current year are presented below for the three activity cost pools: Estimated Overhead Expected Cost Activity Activity 1 $36,000 1,800 Activity 2 $20,000 2,000 Activity 3 $40,000 2,500 Actual activity for the current year was as follows: Actual Activity Activity 1 1,815 Activity 2 2,005 Activity 3 2,490 The amount of overhead applied for Activity 3 during the year was closest to:...
View Full Document
This note was uploaded on 04/06/2012 for the course 10 275 taught by Professor Sahay during the Summer '11 term at Rutgers.
- Summer '11