Determine the overhead from both production departments allocated to each unit of Product B if the company uses a multiple department rate system. (a) $425.60 per unit (b) $115.20 per unit (c) $214.40 per unit (d) $320.00 per unit Common allocation bases are (a) direct labor dollars, direct labor hours, direct material dollars (b) direct labor dollars, direct labor hours, machine hours (c) direct labor dollars, direct labor hours, machine dollars (d) machine dollars, direct labor dollars, machine hours Using a plantwide factory overhead rate distorts product costs when: (a) products require different ratios of allocation-base usage in each production department (b) significant differences exist in the factory overhead rates used across different production departments (c) both A and B are true (d) neither A nor B are true Activity rates are determined by (a) dividing the actual cost for each activity pool by the actual activity base for that pool (b) dividing the cost budgeted for each activity pool by the estimated activity base for that pool. (c) dividing the actual cost for each activity pool by the estimated activity base for that pool (d) dividing the cost budgeted for each activity pool by the actual activity base in that pool Activity-based costing for selling and administrative expenses can also be beneficial in allocating expenses to various products. Which of the following is the best base for help desk costs? a. Number of calls b. Square footage of the help desk office c. Number of products sold d. Number of employees Determine the overhead from both production departments allocated to each unit of Product B if the company uses a multiple department rate system. (a) $425.60 per unit (b) $115.20 per unit (c) $214.40 per unit (d) $320.00 per unit Common allocation bases are (a) direct labor dollars, direct labor hours, direct material dollars (b) direct labor dollars, direct labor hours, machine hours (c) direct labor dollars, direct labor hours, machine dollars (d) machine dollars, direct labor dollars, machine hours Using a plantwide factory overhead rate distorts product costs when: (a) products require different ratios of allocation-base usage in each production department (b) significant differences exist in the factory overhead rates used across different production departments (c) both A and B are true (d) neither A nor B are true Activity rates are determined by (a) dividing the actual cost for each activity pool by the actual activity base for that pool (b) dividing the cost budgeted for each activity pool by the estimated activity base for that pool. (c) dividing the actual cost for each activity pool by the estimated activity base for that pool (d) dividing the cost budgeted for each activity pool by the actual activity base in that pool Activity-based costing for selling and administrative expenses can also be beneficial in allocating expenses to various products. Which of the following is the best base for help desk costs? a. Number of calls b. Square footage of the help desk office c. Number of products sold d. Number of employees
