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Activity-based costing uses a number of activity cost pools, each of which may have a different allocation base. True False Assembling a product is an

Activity-based costing uses a number of activity cost pools, each of which may have a different allocation base.

True

False

Assembling a product is an example of a(n):

A.

Unit-level activity.

B.

Batch-level activity.

C.

Product-level activity.

D.

Organization-sustaining.

Senff Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:

Activity Cost Pools

Activity Rate

Setting up batches

$38.50

per batch

Processing customer orders

$86.62

per customer order

Assembling products

$7.33

per assembly hour

Data concerning two products appear below:

Product V91Z

Product V21I

Number of batches

83

27

Number of customer orders

74

7

Number of assembly hours

702

321

How much overhead cost would be assigned to Product V91Z using the activity-based costing system?

A.

$113,774.55

B.

$132.45

C.

$3,195.50

D.

$14,751.04

The following data have been provided by Graise Corporation from its activity-based costing accounting system:

Factory supervision

$300,000

Indirect factory labor

$160,000

Distribution of Resource Consumption across Activity Cost Pools:

Activity Cost Pools

Batch Set-Up

Expediting

Other

Total

Factory supervision

35%

55%

10%

100%

Indirect factory labor

50%

30%

20%

100%

How much factory supervision and indirect factory labor cost would be assigned to the Batch Set-Up activity cost pool? The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products.

A.

$185,000

B.

$195,500

C.

$230,000

D.

$460,000

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