Excel File Edit View Insert Format Tools Data Window Help O O Q g Fri Nov 11 8:20 PM O.. AutoSave OFF A BE ? C ... Assignment 5 Activity Based Costing (2022-23) Q Insert v Arial v 12 AA Wrap Text General Ex AP- O. Delete v v Z Analyze Paste BIUVV MVAv Merge & Center v $ ~ % " Conditional Format Cell Sort & Find & Sensitivity Formatting as Table Styles Format v Filter Select Data B1 fx B D E F G H 1 J K L M N P Q R S U V W Part A Purchase order processing is an example of a: A. unit-level ac B. batch-level activity. C. product-level activity. D. facility-level activity Part B Departmental overhead rates may not correctly assign overhead costs due to: A. the use of direct labour-hours in allocating overhead costs to products rather than machine time or quantity of materials used B. the high correlation between direct labour-hours and the incurrence of overhead costs. C. overreliance on volume as a basis for allocating overhead costs where products differ regarding the number of units produced, lot size, or complexity of production. 16 D. difficulties associated with identifying cost pools for the first stage of the allocation process 18 Part C 20 Overhead allocation based on volume alone: 21 A. is a key aspect of the activity-based costing model. B. will systematically over cost high-volume products and under cost low-volume products. C. will systematically over cost low-volume products and under cost high-volume products. D. must be used for external financial reporting 25 26 27 Part D The clerical activity associated with processing purchase orders to produce an order for a 28 standard product is an example of a: 29 A. unit-level activity. 30 B. batch-level activity. 31 C. product-level activity. 32 D. facility-level activity. 33 34 35 Part E Ottawa Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A are 8,000 units and of Product B are 6,000 units 36 There are three activity cost pools, with estimated total cost and expected activity as follows: 37 Instructions Question 1 Question 2 Question 3 Question 4 Assessment Criteria + + 100% Ready Accessibility: InvestigateExcel File Edit View Insert Format Tools Data Window Help O O Q Fri Nov 11 8:20 PM Assignment 5 Activity Based Costing (2022-23) Q O.. AutoSave O OFF A BE ? C ... Insert v Arial v 12 AA Wrap Text General Ex AY- O. Delete v V Z Merge & Center $ ~ % " Conditional Format Cell Sort & Find & Analyze Sensitivity Paste BIU EV DVAv Formatting as Table Styles Format v Filter Select Data B65 fx A H J K L M N P Q R S U V W X 35 Part E Ottawa Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A are 8,000 units and of Product B are 6,000 units. 36 There are three activity cost pools, with estimated total cost and expected activity as follows: 37 38 39 Activity Estimated Expected Activity Product Product Cost Pool Cost Total 40 A B 41 Activity 1 $20,000 100 400 500 Activity 2 $37,000 800 200 ,000 Activity 3 $91,200 8001 3,000 3,800 45 46 The cost per unit of Product A under activity-based costing is closest to: A. $2.40. 48 B. $3.90. 49 C. $6.60 50 D. $10.59. 51 52 53 54 55 56 57 67 68 69 70 71 Instructions Question 1 Question 2 Question 3 Question 4 Assessment Criteria + + 100% Ready Accessibility: Investigate