Question 4 of 20 50 points if jobs have been under

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Question 4 of 205.0 PointsIf jobs have been under costed due to under allocation of manufacturing overhead, then cost ofgoods sold (COGS) is too low and which of the following corrections must be made?
A.Decrease COGS for the amount of the under allocationB. Increase COGS for double the amount of the under allocationC. Decrease COGS for double the amount of the under allocationD. Increase COGS for the amount of the under allocationQuestion 5 of 205.0 PointsWatson's Computer Company uses ABC to account for its manufacturing process.ActivitiesIndirect activitybudgetAllocation base (cost driver)Materials handling$52,000Based on number of partsMachine setup30,000Based on number of setupsAssembling9,750Based on number of partsPackaging15,300Based on number of finishedunitsWatson's Computer Company expects to produce 2,250 computers. Watson's Computer Companyalso expects to use 13,000 parts and have 20 setups. The allocation rate for materials handling willbe:
B. $6.80.C. $23.11.D. $7.01.Question 6 of 205.0 PointsThe predetermined indirect cost allocation rate is computed as:
Question 7 of 205.0 PointsThe benefits of using the ABC costing system are higher if the company:

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Term
Spring
Professor
N/A
Tags
Accounting, cost allocation rate, Computer Company

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