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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

  1. 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 $ 70,000 6,000 9,000 20,000
    Activity 2 $ 45,000 7,000 15,000 8,000
    Activity 3 $ 82,000 2,500 1,000 1,625

    What are the activity rates for the three activities under activity-based costing?

    (1) $2.00; (2) $3.00; (3) $3.50.

    (1) $2.00; (2) $1.50; (3) $32.80.

    (1) $3.50; (2) $1.50; (3) $32,80.

    (1) $2.00; (2) $1.50; (3) $16.00.

    (1) $3.50; (2) $3.00; (3) $16.00.

1 points

QUESTION 52

  1. B&T Company's production costs for May are: direct labor, $13,000; indirect labor, $6,500; direct materials, $15,000; property taxes on production facility, $800; factory heat, lights and power, $1,000; and insurance on plant and equipment, $200. B&T Company's factory overhead incurred for May is:

    $36,500.

    $2,000.

    $8,500.

    $6,500.

    $21,500.

1 points

QUESTION 53

  1. A company uses a process costing system. Its Welding Department completed and transferred out 100,000 units during the current period. The ending inventory in the Welding Department consists of 30,000 units (75% complete with respect to direct materials and 40% complete with respect to conversion costs). Determine the equivalent units of production for the Welding Department for direct materials and conversion costs assuming the weighted average method.

    130,000 materials; 112,000 conversion.

    112,500 materials; 130,000 conversion.

    107,500 materials; 118,000 conversion.

    130,000 materials; 130,000 conversion.

    122,500 materials; 112,000 conversion.

1 points

QUESTION 54

  1. Luker Corporation uses a process costing system. The company had $160,500 of beginning Finished Goods Inventory on October 1. It transferred in $837,000 of units completed during the period. The ending Finished Goods Inventory balance on October 31 was $158,200. The entry to account for the cost of goods sold in October is:

    Debit Cost of Goods Sold $839,300; credit Work in Process Inventory $839,300.

    Debit Cost of Goods Sold $837,000; credit Finished Goods Inventory $837,000.

    Debit Finished Goods Inventory $837,000; credit Work in Process Inventory $837,000.

    Debit Finished Goods Inventory $158,200; credit Cost of Goods Sold $158,200.

    Debit Cost of Goods Sold $839,300; credit Finished Goods Inventory $839,300.

1 points

QUESTION 55

  1. A company's overhead rate is 60% of direct labor cost. Using the following incomplete accounts, determine the cost of direct materials used. 106,400.
    Work in Process Inventory
    Beginning WIP 100,800
    Direct materials ?
    Direct labor ?
    Applied overhead ?
    To finished goods ?
    Ending WIP 131,040
    Factory Overhead
    100,800 90,720
    Finished Goods Inventory
    Beginning FG 118,200
    324,800 301,000
    Ending FG 142,000

    $30,240.

    $113,120.

    $324,800.

    $106,400.

    $211,680.

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