Unit level cost drivers are most appropriate as an

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33.Unit-level cost drivers are most appropriate as an overhead assignment base when:a.several complex products are manufacturedb.only one product is manufacturedc.direct labor costs are lowd.factories produce a varied mix of products
34.With traditional costing systems, products manufactured in small batches and in smallannual volumes may be __________ because batch-related and product-sustaining costsare assigned using unit-related drivers.
THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 35 AND 36:Products S5 and CP8 each are assigned $50.00 in indirect costs by a traditional costingsystem.An activity analysis revealed that although production requirements are identical, S5requires 45 minutes less setup time than CP8.35.According to an ABC system, CP8 is __________ under the traditional system.
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36.According to an ABC system, S5 uses a disproportionately:
37.Put the following ABC implementation steps in order:ACompute the allocation rates.BCompute the total cost of the products.CIdentify the products that are the cost objects.DSelect the cost allocation bases.a.DACBb.DBCAc.BADCd.CDAB
38.ABC systems identify __________ costs used by products.
39.The focus of ABC systems is on:
40.When designing a costing system, it is easiest to:
41.ABC assumes all costs are __________ because over the long run management canadjust the amount of resources employed.a.fixedb.variablec.committedd.nondiscretionary
42.A manufacturing firm produces multiple families of products requiring variouscombinations of different types of parts.Of the following, the MOST appropriate costdriver for assigning materials handling costs to the various products is:
THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 43 THROUGH 46:Barnes Corporation manufactures two models of office chairs, a standard and a deluxe model.The following activity and cost information has been compiled:Number ofNumber ofNumber ofProductSetupsComponentsDirect Labor HoursStandard228375Deluxe2812225Overhead costs$20,000$40,000

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Term
Fall
Professor
N/A
Tags
Cost Accounting, overhead costs
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Accounting
The document you are viewing contains questions related to this textbook.
Chapter 21 / Exercise 4
Accounting
Reeve/Warren
Expert Verified

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