10 multiple choice questions of management accounting. only answer needed. ensure at least 9 of them are CORRECT!
1. The Kelsey Manufacturing Company Ltd has two production departments (Assembly and Finishing) and two support departments (Janitorial and Personnel). The usage of the two support departments in 2012 is as follows: The budgeted costs in the support departments of 2012 were as follows: Using the stepdown method, what is the amount of Janitorial Department cost allocated to the Assembly Department? Select one: A $24 842 B $28 948 C $34 158 D $23 600 2. Appleford Ltd is a furniture manufacturer. It has a small range of products. Its manufacturing processes are characterised by a high level of automation. Appleford Ltd decides to choose a volumebased cost driver for its indirect manufacturing costs. Which of the following cost drivers is most appropriate? Select one: A The number of units produced. B The number of machine hours. C The number of manufacturing batches. D Direct labour hours. 3. The Lots More Store has a Janitorial Department and a Personnel Department that provide services to three Sales Departments. The Janitorial Department cost is allocated based on space and the Personnel Department cost is allocated based on employees. The following information is available. Using the direct method, calculate the amount of Janitorial Department cost allocated to Sales Department #1. Select one: A $5714 B $5769 C $6000 D $6169 4. The following information about Monfort Manufacturing is available: Using the direct method, the cost allocated from both of the support departments to Machining Department is: Select one: A $231429 B $213 810 C $170 000 D $180 000 5. The East Coast University uses a printing machine, the FL200, to print exam papers. According to the operation manual, FL200 can prints 2000 sets of exam papers per hour when it is operating at peak efficiency. However, Edgo Liew, the head printer, notes that in normal (but still efficient) operations, the machine can produce only 1800 sets of exam papers in an hour. Further, Edgo also notes that given the small number of students enrolled in the East Coast University, the machine is never required to print more than 1500 sets of exam papers per hour. The theoretical capacity of the FL200 is: Select one: A 2000 sets of exam papers per hour B 1800 sets of exam papers per hour C 1500 sets of exam papers per hour D 500 sets of exam papers per hour 6. What is the total cost allocated to the bookkeeping services using activitybased costing? Select one: A $24,000 B $33,000 C $35,000 D $44,000 7. ____________________________________________________________________ What amount of orderfilling costs would be allocated to the five smaller customers if these costs are allocated using an activitybased costing approach? Select one: A $10,000 B $350,000 C $28,800 D $331,200 8. Which of the following are examples of batch level activities? Select one: A Machine setup AND Designing products. B Materials handling AND Advertising. C Machining AND Welding. D Machine setup AND materials handling. 9. In a pure activitybased costing system, which of the following might be treated as period costs? Select one: A Facilitylevel costs B Productlevel costs C Batchlevel costs D Unitlevel costs 10. The Pinewood Furniture Company Pty Ltd plans to manufacture two lines of chairs in the coming yearlounge and patio. The company is considering introducing an activitybased costing system. Given below are each activity, its cost and its related activity driver. The level of activity for the year is: Under an activitybased costing system, what is the overhead cost of patio chairs for the year? Select one: A $1 150 000 B $890 600 C $1 710 000 D $590 000
