1. Product engineering is an example of a:

A. Unit-level activity

B. Batch-level activity

C. Product-level activity

D. Facility-level activity

2. Data concerning three of the activity cost pools of Barley LLC, a legal firm, have been provided below:

The activity rate for the "meeting with clients" activity cost pool is closest to:

A. $ 158 per meeting hour

B. $ 1,102,050 per meeting hour

C. $ 63 per meeting hour

D. $ 116 per meeting hour

3. Gu Corporation has provided the following data from its activity-based costing accounting system:

The activity rate for the "designing products" activity cost pool is closest to:

A. $ 128 per product design hour

B. $ 78 per product design hour

C. $ 582,016 per product design hour

D. $ 89 per product design hour

4. Sisi Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows:

The activity rate under the activity-based costing system for Supporting Customers is closest to:

A. $ 46.33

B. $ 65.00

C. $ 21.67

D. $ 18.53

5. WP Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:

Data concerning two products appear below:

How much overhead cost would be assigned to Product V09X using the activity-based costing system?

A. $ 157.87

B. $ 91,722.47

C. $ 10,385.22

D. $ 5,485.50

6. Activity rates from QE Corporation's activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products:

Last year, Product F included the following activities: 2 customer orders, 434 assembly hours, and 20 batches. How much overhead cost would be assigned to Product F using the activity-based costing system?

A. $ 2,000.04

B. $ 1,041.80

C. $ 66,908.88

D. $ 146.73

7. EM Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:

Data for one of the company's products follow:

How much overhead cost would be assigned to Product P59G using the activity-based costing system?

A. $ 10,014.40

B. $ 54,482.56

C. $ 5,301.76

D. $ 154.78

8.BB Company allocates materials handling cost to the company's two products using the below data:

The total materials handling cost for the year is expected to be $9,072. If the materials handling cost is allocated on the basis of material moves, how much of the total materials handling cost should be allocated to the modular homes? (Round off your answer to the nearest whole dollar.)

A. $ 7,056

B. $ 7,938

C. $ 5,885

D. $4,536

9. BM Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 2,000 units and of Product B is 3,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows:

The overhead cost per unit of Product A under activity-based costing is closest to:

A. $ 8.63

B. $ 6.00

C. $ 9.60

D. $13.80

10. DJ Corporation has provided the following data from its activity-based costing system:

The company makes 430 units of product W a year, requiring a total of 690 machine-hours, 40 orders, and 10 inspection-hours per year. The product's direct material cost is $35.72 per unit and its direct labor cost is $29.46 per unit. According to the activity-based costing system, the unit product cost of product W is closest to:

A. $ 89.72 per unit

B. $ 94.11 per unit

C. $ 65.18 per unit

D. $ 92.49 per unit

11. Cherrie Company manufactures two products, Product C and Product D. The company estimated it would incur $167,140 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor-hours. Data concerning the current period's operations appear below:

Required: a. Compute the predetermined overhead rate under the current method, and determine the unit product cost of each product for the current year.

b. The Company is considering using an activity-based costing system to compute unit product costs for external financial reports instead of its traditional system based on direct labor-hours. The activity-based costing system would use three activity cost pools. Data relating to these activities for the current period are given below: Determine the unit product cost of each product for the current period using the activity-based costing approach.

12. Kiya Company makes two products and uses a conventional costing system in which a single plant-wide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow:

These products are customized to some degree for specific customers.

Required: a. The Companys manufacturing overhead costs for the year are expected to be $ 336,000. Using the companys conventional costing system compute the unit product costs for the two products.

b. Management is considering an activity-based costing system in which half of the overhead would continue to be allocated on the basis of direct labor-hours and half would be allocated on the basis of engineering design time. This time is expected to be distributed as follows during the upcoming year:

Compute the unit product costs for the two products using the proposed ABC system.

c. Explain why the product cost differ between the two systems.