When overhead is applied based on the volume of

This preview shows page 1 - 4 out of 6 pages.

4. When overhead is applied based on the volume of output, which of the following product types would receive relatively more overhead? a. High-volume, complex products b. High-volume, less complex products c. Low-volume, complex products d. Low-volume, less complex products e. There would be no difference. 5. Which of the following statements regarding the differences between activity-based
costing and traditional department product costing methods is not correct?
c. Activity-based costing provides more information about product costs. d. Activity-based costing requires less record keeping. e. All of these statements are correct. 6. Gate Industries manufactures a standard model and a deluxe model of skateboard. The company, which uses an activity-based costing system, has identified the number of setups and number of production runs as cost drivers for overhead. The following activity and cost data were from March. How much overhead will be assigned to the deluxe model?
Number of Set- Ups Number of Production Runs Number of Machine Hours Standard 20 6 30,000 Deluxe 5 4 10,000 Overhead costs $ 20,000 $ 30,000 7. The main difference between an activity-based costing system and a two-stage costing system is that, in the first-stage allocation, an activity-based costing system: 8. What is the term used to describe a process that attempts to recover a fixed amount of
costs with fewer and fewer units? a. Shadow phenomenon b. Death spiral c. End-game d. Profit and loss syndrome e. None of these.
9. The Antigone Company uses machine hours to apply overhead to the Machining Department and direct labor hours in the Assembly Department. The following information is available for the current year: Machining Assembly
Estimated overhead $ 420,000 $540,000 Estimated activity: Machine hours 70,000 15,000 Direct labor hours 40,000 60,000 Actual activity: Machine hours 64,500 12,500 Direct labor hours 35,000 63,200 What is the total amount of overhead assigned to the product?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture