Question 1

A company has two products: A and B.It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:  Annual production and sales level of Product A is 34,300 units,and the annual production and sales level of Product B is 69,550 units.
-What is the approximate overhead cost per unit of Product A under activity-based costing?

Accepted Answer

A)  $3.00
B)  $2.00
C)  $10.28
D)  $15.00
E)  $2.33F) A) and B)
G) C) and E)

Question 2

Time Bender Company makes watches and clocks.The following estimated data are available for the company's next fiscal year:
Total direct labor costs: $1,700,000
Total setup costs: $190,000
  Determine the setup cost per unit for the watches and the clocks if setup costs are assigned using a plantwide overhead rate based on direct labor hours.(Round to two decimal places.)

Accepted Answer

Watches:
68,000 DLH/85,000 DLH x $190,00...

Question 3

Consider the following activities that take place in a veterinary clinic. (a) Cleaning cages.
(b) Heating and air conditioning the clinic.
(c) Sending blood work to a lab.
(d) Dispensing medicine.
Which of the following statements is true?

Accepted Answer

A)  Service entities cannot use ABC for overhead allocation.
B)  Cleaning cages is a facility level activity.
C)  Dispensing medicine is a facility level activity.
D)  Heating and air conditioning the clinic is a facility level activity.
E)  Sending blood work to a lab is a facility level activity.F) C) and E)
G) A) and E)

Exam 17: Activity-Based Costing and Analysis

Correct Answer
verified
Watches:
68,000 DLH/85,000 DLH x $190,00...
View Answer

Correct Answer
verified

Consider the following activities that take place in a veterinary clinic. (a) Cleaning cages. (b) Heating and air conditioning the clinic. (c) Sending blood work to a lab. (d) Dispensing medicine. Which of the following statements is true?

Correct Answer
verified

Exam 17: Activity-Based Costing and Analysis

Correct AnswerverifiedWatches:68,000 DLH/85,000 DLH x $190,00...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Consider the following activities that take place in a veterinary clinic. (a) Cleaning cages. (b) Heating and air conditioning the clinic. (c) Sending blood work to a lab. (d) Dispensing medicine. Which of the following statements is true?

Correct AnswerverifiedShow Answer

Correct Answer
verified
Watches:
68,000 DLH/85,000 DLH x $190,00...
View Answer

Correct Answer
verified

Correct Answer
verified