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1. Which of the following activities would be classified as a batchlevel activity? Circle One: Milling a part required for the final product. Setting...


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1. Which of the following activities would be classified as a batch-level  activity? Circle One: Milling a part required for the final product. Setting up equipment. Designing a new product. Training employees. 2. Which of the following is not  a limitation of activity-based costing? Circle  One. Maintaining an activity-based costing system is more costly than  maintaining a traditional direct labor-based costing system. In practice, most managers insist on fully allocating all costs to  products, customers, and other costing objects in an activity-based  costing system. This results in overstated costs. More accurate product costs may result in increasing the selling prices of some products. Changing from a traditional direct labor-based costing system to an  activity-based costing system changes product margins and other key  performance indicators used by managers. Such changes are often  resisted by managers. 3. Designing a new product is an example of a:  Unit-level activity. Organization-sustaining  activity. Batch-level activity. Product-level activity. 4. Bulmash Corporation uses an activity-based costing system with the  following three activity cost pools:
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Activity Cost Pool Total Activity Fabrication 40,000 machine-hours Order processing 500 orders Other Not applicable   The Other activity cost pool is used to accumulate costs of idle capacity and  organization-sustaining costs. The company has provided the following data concerning its costs: Wages and salaries   $420,000 Depreciation   $100,000 Occupancy    $120,000     Total    $640,000       The distribution of resource consumption across activity cost pools is given below:                                  Activity Cost Pools                                    Fabricatio n Order Processing Other Tota l Wages and salaries 5% 80% 15% 100 % Depreciation 15% 45% 40% 100 % Occupancy 25% 50% 25% 100 %   The activity rate for the Fabrication activity cost pool is closest to: $0.80 per machine-hour $2.40 per machine-hour $1.65 per machine-hour $4.00 per machine-hour 5. Jordan Corporation uses an activity-based costing system with the  following three activity cost pools:
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1. Which of the following activities would be classified as a batch­level activity? Circle One: Milling a part required for the final product. Setting up equipment. Designing a new product....

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