Question
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table:
| Budgeted Activity | ||||||||||||
| Activity Cost Pool | Budgeted Cost | Product A | Product B | Product C | ||||||||
| Activity 1 | $ | 77,000 | 6,700 | 9,700 | 20,700 | |||||||
| Activity 2 | $ | 52,000 | 7,700 | 15,700 | 8,700 | |||||||
| Activity 3 | $ | 96,000 | 3,200 | 1,700 | 2,325 | |||||||
How much overhead will be assigned to Product B using activity-based costing?
Multiple Choice
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$68,153.33
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$87,948.46
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$67,952.05
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$225,000.00
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$77,000.00
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table:
| Budgeted Activity | ||||||||||||
| Activity Cost Pool | Budgeted Cost | Product A | Product B | Product C | ||||||||
| Activity 1 | $ | 78,000 | 6,800 | 9,800 | 20,800 | |||||||
| Activity 2 | $ | 53,000 | 7,800 | 15,800 | 8,800 | |||||||
| Activity 3 | $ | 98,000 | 3,300 | 1,800 | 2,425 | |||||||
Which of the following statements is true regarding this company's activity rates?
Multiple Choice
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The activity rate under the activity-based costing system for Activity 2 is $2.09.
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The activity rate under the activity-based costing system for Activity 2 is $13.02.
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The activity rate under the activity-based costing system for Activity 2 is $1.64.
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The activity rate under the activity-based costing system for Activity 2 is $16.74.
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The activity rate under the activity-based costing system for Activity 2 is $3.14.
The following data relates to Mangini Company's estimated amounts for next year.
| Estimated: | Department 1 | Department 2 | |||||
| Manufacturing overhead costs | $ | 500,000 | $ | 580,000 | |||
| Direct labor hours | 74,000 | DLH | 84,000 | DLH | |||
| Machine hours | 2,800 | MH | 3,400 | MH | |||
What is the company's plantwide overhead rate if machine hours are the allocation base? (Round your answer to two decimal places.)
Multiple Choice
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$207.14 per MH
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$140.00 per MH
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$174.19 per MH
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$47.70 per MH
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$6.84 per MH
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Accounting And Financial Management For Residential Construction
Authors: Emma Shinn
5th Edition
0867186356, 978-0867186352
