ACCOUN 11. Custom Tees' Printing Department has materials cost at $2 per unit and conversion cos at $4 per unit. There are 20,000 units in ending work in process, all of which are 70% complete as to conversion costs and 100% complete as to materials. How much are total costs to be assigned to ending work in process inventory? A) $120,000. B) $96,000. C) $56,000. D) $84,000. 12. If there are no units in process at the beginning of the period, then A) the units to be accounted for will equal the units transferred out plus the units in process at the end of the period. B) the company must be using ajob order cost system. C) the units started into production will equal the number of units transferred out D) only one computation of equivalent units of production will be necessary. 13. In a process cost system, the number of units to be accounted for in a department are equal to the A) number of units in the beginning inventory plus the number of units started or transferred into the department. B) number of units started or transferred into the department. C) number of units transferred out of the department. D) number of units in ending inventory plus the units started or transferred into the department. 14. Department 1 of a two department production process has the following information at the end of the month: Units 10,000 50,000 180,000 Beginning Work in Process Ending Work in Process Total units to be accounted for How many units were transferred out to Department 2 during the month? A) 130,000. B) 50,000. C) 170,000. D) 180,000. 02017 15. The last department in a production process shows the following information at the end of the period: Units 25,000 240,000 50,000 Beginning Work in Process Started into Production Ending Work in Process How many units have been transferred out to finished goods during the period? A) 215,000. B) 265,000. C) 240,000. D) 290,000. 16, Physical units accounted for are 160,000. Total conversion costs are $387,100. There are 4,000 units in ending inventory which are 50% complete as to conversion costs. How much is the conversion cost per unit? A) $2.39. B) $2.42. C) $2.36 D) $2.45. 17. Which of the following is not typical of traditional costing systems? A) Use of a single predetermined overhead rate. B) Assumption of correlation between direct labor and incurrence of overhead cost. C) Use of multiple cost drivers to allocate overhead. D) Use of direct labor hours or direct labor cost to assign overhead. 18. Ordering materials, setting up machines, assembling products, and inspecting products are examples of dempc A) overhead cost pools. B) nonmanufacturing activities. C) direct labor costs. i 000.01 D) cost drivers. 000.09 19. An example of an activity cost pool is bo a A) number of inspections. B) machine hours. C) number of setups. D) setting up machines. 000 92 20. An activity-based overhead rate is computed as follows: A) actual overhead divided by actual use of cost drivers. B) estimated overhead divided by estimated use of cost drivers. C) estimated overhead divided by actual use of cost drivers. D) actual overhead divided by estimated use of cost drivers. 21. Companies that switch to Activity-Based Costing often find they have A) been overpricing some products. B) been sacrificing profitability by underpricing some products. C) All of the these answers are correct. D) possibly losing market share to competitors. 22. Marathon Oil Company manufactures two products, Regular and Supreme. Marathon's overhead costs consist of machining, $3,000,000; and assembling, $1,500,000. Information on the two products is: Supreme 15,000 30,000 160,000 Regular 10,000 10,000 90,000 Direct labor hours Machine hours Number of parts How much Overhead is applied to Regular using traditional costing based on direct labor hours? A) $3,210,000. B) $1,290,000. C) $2,700,000. D) $1,800,000. 23. Marathon Oil Company manufactures two products, Regular and Supreme. Marathon's overhead costs consist of machining, $3,000,000; and assembling, $1,500,000. Information on the two products is: Regular 10,000 10,000 90,000 Supreme 15,000 30,000 160,000 Direct labor hours Machine hours Number of parts How much Overhead is applied to Regular using activity-based costing? A) $1,800,000. B) $1,290,000. C) $3,210,000. D) $2,700,000. 24. Aveda, Inc. produces 3 products: P1, Q2, and R3. Pl requires 400 purchase orders, Q2 requires 600 purchase orders, and R3 requires 1,000 purchase orders. Aveda has identified an ordering and receiving activity cost pool with allocated overhead of $240,000 for which the cost driver is purchase orders. Direct labor hours used on each product are 50,000 for P1, 40,000 for Q2, and 110,000 for R3. How much ordering and receiving overhead is assigned to each product using activity-based costing? P1 02 $60,000 R3 A) $4,000 $126,000 B) $80,000 $80,000 $80,000 C) $48,000 $72,000 $120,000 D) $60,000 $48,000 $132,000 25. Urban Products Co. incurs $1,050,000 of overhead costs each year in its three main departments, machining ($600,000), inspections ($300,000) and packing ($150,000). The machining department works 4,000 hours per year, there are 600 inspections per year, and the packing department packs 1,000 orders per year. Information about Urban's two products is as follows: Product Y 3,000 500 Product X 1,000 100 Machining hours Inspections Orders packed Direct labor hours 650 1,800 350 1,700 If traditional costing based on direct labor hours is used, how much overhead is assigned to Product X this year? A) $252,501 B) $525,000 C) $363,462 D) $510,000 8 loio bso Ab