Question
11. MegaMags Company uses activity-based costing. The company produces weekly and monthly magazines. The estimated costs and expected activity for each of the activity pools
11. MegaMags Company uses activity-based costing. The company produces weekly and monthly magazines. The estimated costs and expected activity for each of the activity pools follow:
Activity Estimated Expected Activity
Cost Pool Cost Weekly Monthly Total
Activity 1 $15,675 800 400 1,200
Activity 2 $11,900 500 200 700
Activity 3 $27,600 800 300 1,100
Total costs which would be charged to monthly magazines would be:
a. $10,300.
b. $6,900.
c. $55,175.
d. $16,151.
12. Standard cost variances are A. the differences between standard and actual costs. B. only calculated if they are exceptional.
C. of limited value in a period of increasing prices. D. impossible to calculate for manufacturing overhead.
13. The difference between standard and actual costs is a(n)
A. actual cost overrun. B. variance by exception. C. slack amount. D. standard cost variance.
14. In general, unfavorable material variances arise from A. using more material than planned. B. paying a higher price than planned. C. Both A and B are correct. D. None of the above is correct.
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