at a pet food manufacturer is considering ading two types of pet food to its existing food in 40 pound bags Assume th product line Research had determined that good demand exists for dog and cat food in 1 2pound cans The company ideatified for the next year the following partial list of sctivities, costs, and activity drivers expected Expected Cost Driver Activity Costs Handling materials$105,000 Number of made Storage costs$820,000Weight of finished product Dog Food Cat Food Production volume 100,000 units 200,000 units Batches made 200 batches 150 batches 44 Refer to the data above What are the overhead rates used to apply material handling (MH) and storage costs (SC) using activity based costing a) MH $300 batch SC $2 73 unit b) MH $300 batch SC $ 20 1b c) MH $525 batch SC S 205 unit d) MH S700 batch SC $ 205 1b c) MH $700 batch SC $8 201b 45 Which of the following statements is true of activity based costing a) ABC ignores the allocation of marketing costs b) ABC classifies some indirect costs as direct costs e) ABC is more likely to result in big business makes only one product rather than multiple products Activities are the cost objects of the second stage of ABC d) 46 ABC systems a) usually will undercost complicated or complex products b) will limit cost drivers to units of output c) highlight the different levels of activities d) will allocate costs based on the overall level of activity

Question

at a pet food manufacturer is considering ading two types of pet food to its existing food in 40 pound bags Assume th product line  Research had determined that good demand exists for dog and cat food in 1 2pound cans The company ideatified for the next year the following partial list of sctivities, costs, and activity drivers expected Expected Cost Driver Activity Costs Handling materials$105,000 Number of made Storage costs$820,000Weight of finished product Dog Food Cat Food Production volume 100,000 units 200,000 units Batches made 200 batches 150 batches 44  Refer to the data above  What are the overhead rates used to apply material handling (MH) and storage costs (SC) using activity based costing  a) MH $300 batch  SC $2 73 unit  b) MH $300 batch  SC $ 20 1b  c) MH $525 batch  SC S 205 unit d) MH S700 batch  SC $ 205 1b c) MH $700 batch  SC $8 201b  45  Which of the following statements is true of activity based costing  a) ABC ignores the allocation of marketing costs b) ABC classifies some indirect costs as direct costs e) ABC is more likely to result in big business makes only one product rather than multiple products  Activities are the cost objects of the second stage of ABC  d) 46  ABC systems a) usually will undercost complicated or complex products b) will limit cost drivers to units of output c) highlight the different levels of activities d) will allocate costs based on the overall level of activity

Accepted Answer

The Answer is in the image, click to view ...

Question

at a pet food manufacturer is considering ading two types of pet food to its existing food in 40-pound bags Assume th product line. Research

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Financial Accounting An Integrated Statements Approach

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question