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If the company used activity - based costing, the total material costs plus the total direct labour costs assigned to the job would be $
If the company used activitybased costing, the total material costs plus the total
direct labour costs assigned to the job would be $
A
If the company used activitybased costing, the total cost of the job would be
$
A
PART B:
Assume, instead, that the company continues to use the plantwide overhead
application rate.
If the company allocated overhead to the job using a plantwide overhead rate, the
total overhead cost assigned to the job would be $
A
If the company allocated overhead to the job using a plantwide overhead rate, the
total cost of the job would be $ PART C:
If the company decided to continue to use the plantwide overhead application rate,
which of the following statements is true?
Enter either A or B in the space provided.
A Use of the plantwide rate would cause the company to overprice the job.
B Use of the plantwide rate would cause the company to underprice the job.
Part D:
Read the following statement and indicate if the statement is TRUE enter T or
FALSE enter F
It would be appropriate to adopt an ABC policy if the company produced multiple
products and the products were quite similar.Bluh Manufacturing Inc. the company" has three different categories of
overhead.
The overhead costs for each of the categories for the next year are as follows:
Currently, the company applJefferson Blush Manufacturing Inc. the company" has three different categories of overhead. The overhead costs for each of the categories for the next year are as follows: Expected Costs Cost Driver Activity Materials handling $ Material moves Maintenance $ Machine hours Inspection $ Inspections Currently, the company applies overhead using a plantwide predetermined overhead rate based upon a budgeted direct labour hours of The company has been asked to submit a bid on a proposed job. In order to submit this bid, the company needs to calculate the total cost of performing this job. Financial details for the proposed job are as follows: Direct materials $ Direct labour $ Number of direct labour hours Number of material moves Number of inspections Number of machine hours Use the information provided to answer the following questions. If the company used activitybased costing, the total material costs plus the total direct labour costs assigned to the job would be $ A If the company used activitybased costing, the total cost of the job would be $ A PART B: Assume, instead, that the company continues to use the plantwide overhead application rate. If the company allocated overhead to the job using a plantwide overhead rate, the total overhead cost assigned to the job would be $ A If the company allocated overhead to the job using a plantwide overhead rate, the total cost of the job would be $ A PART C: If the company decided to continue to use the plantwide overhead application rate, which of the following statements is true? Enter either A or B in the space provided. A Use of the plantwide rate would cause the company to overprice the job. B Use of the plantwide rate would cause the company to underprice the job. A Part D: Read the following statement and indicate if the statement is TRUE enter T or FALSE enter F It would be appropriate to adopt an ABC policy if the company produced multiple products and the products were quite similar. Aies overhead upro job.
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