The prices that are easiest to trace straight to products areA. direct products and straight labor.B. straight labor and overhead.C. direct products and overhead.D. none of the above; all 3 expenses are equally simple to map to the product.

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Which of the complying with is not a product-level activity?A. Material handlingB. Inventory managementC. Engineering changesD. Product design
Which of the following is not a advantage of activity-based costing?A. Enhanced control over overhead costsB. Better administration decisionsC. Less costly to useD. More accurate product costing
Use of activity-based costing will certainly lead to the breakthrough ofA. one plantwide activity-based overhead price.B. no overhead rates; overhead prices are not used in activity-based costing.C. one overhead price based on straight labor hours.D. multiple activity-based overhead rates.
Which of the adhering to is not a batch-level activity?A. Equipment setupsB. Acquisition orderingC. InspectionD. Assembling
Gant Accounting performs 2 forms of services, Audit and also Tax. Gant"s overhead prices consist of computer support, $318000; and legal support, $159000. Information on the 2 services is: Direct labor cost: $50000 ( Audit); $100000 (Tax)CPU minutes: 40000 (Audit); 10000 (Tax)Legal hours used: 200 (Audit); 800 (Tax)Overhead used to taxes solutions utilizing typical costing isA. $190800.B. $286200.C. $318000.D. $159000.
Which of the adhering to determinants would certainly suggest a switch to activity-based costing?A. The production process has been stable.B. provided by the existing system.C. Product lines comparable in volume and production complexity.D. Overhead expenses constitute a far-reaching percent of full prices.
An activity that has actually a direct cause-impact connection via the sources consumed is a(n)A. overhead price.B. cost driver.C. price pool.D. product activity.
Foxx Company kind of incurs $350000 overhead costs yearly in its 3 primary departments, setup ($20000), machining ($235000), and packing ($95000). The setup department perdevelops 40 setups per year, the machining department works 5000 hours per year, and the packing department packs 500 orders per year. Information around Foxx"s 2 products is as follows:Number of setups: 20 (Product A1); 20 (Product B1)Machining hours: 1000 (Product A1); 4000 (Product B1)Orders packet: 150 (Product A1); 350 (Product B1)Number of commodities manufactured: 600 (Product A1); 400 (Product B1)Using ABC, just how much overhead is assigned to Product B1 each year?A. $175000B. $264500C. $280000D. $140000
For its inspecting cost pool, Ellsworth, Inc. meant overhead expense of $500000 and also 4000 inspections. The actual overhead expense for that price pool was $580000 for 5000 inspections. The activity-based overhead rate provided to assign the prices of the inspecting price pool to products isA. $125 per inspection.B. $145 per inspection.C. $116 per inspection.D. $100 per inspection.
Boswell Company manufactures two products, Regular and also Supreme. Boswell"s overhead expenses consist of machining, $1400000; and also assembling, $700000. Information on the 2 commodities is:Direct labor hours: 10000 (Regular); 15000 (Supreme)Machine hours: 10000 (Regular); 30000 (Supreme)Number of parts: 90000 (Regular); 160000 (Supreme)Overhead applied to Regular making use of activity-based costing isA. $602000.B. $840000.C. $1498000.D. $1260000.
Which of the adhering to is not a unit-level activity?A. Acquisition orderingB. PaintingC. AssemblingD. Sewing
What sometimes makes implementation of activity-based costing tough in organization sectors isA. attempting to minimize or remove non-value-included activities.B. the labeling of activities as value-included.C. identifying tasks, activity expense plus, and expense chauffeurs.D. that a bigger proportion of overhead prices are company-wide expenses.
Which ideal explains the flow of overhead prices in an activity-based costing system?A. Overhead expenses → activity expense pools → cost motorists → productsB. Overhead costs → productsC. Overhead costs → machine hrs → productsD. Overhead expenses → direct labor cost or hours → products
Which of the adhering to is not a batch-level activity?A. Equipment setupsB. InspectionC. Purchase orderingD. Assembling
Which of the complying with is true around activity-based costing?A. Less expense poolsB. More costly to useC. Eliminates arbitrary allocationsD. Same base as conventional costing
Gant Accounting performs 2 forms of solutions, Audit and Tax. Gant"s overhead expenses consist of computer support, $366000; and legal assistance, $180000. Information on the 2 solutions is:Direct labor cost: $50000 (Audit); $100000 (Tax) CPU minutes: 40000 (Audit); 10000 (Tax) Legal hrs used: 200 (Audit); 800 (Tax) Gant Accounting performs taxes solutions for Cathy Lane. Direct labor cost is $1200; 600 CPU minutes were used; and also 1 legal hour was offered. What is the total cost of the Lane project making use of activity-based costing?A. $5772B. $6192C. $4392D. $4572
Which of the adhering to is not a batch-level activity?A. Equipment setupsB. InspectionC. Materials handlingD. Engineering changes
Companies that switch to ABC often find they haveA. been overpricing some products.B. possibly shedding industry share to competitors. C. been sacrificing profitcapacity by underpricing some commodities.D. all of the these answers are correct.

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A well-designed activity-based costing device starts withA. identifying the activity-price pools.B. analyzing the activities percreated to manufacture a product.C. computing the activity-based overhead rate.D. assigning overhead expenses to assets.
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