Q4.21: Wind Inc. and Vortex Inc. both manufacture 10 different models of ceiling fans. Wind's production line is entirely mechanized, and the firm has no plans to alter its product line or its manufacturing processes any time in the next five years. Vortex also uses a fully mechanized production line. However, the company redesigns all of its products on a yearly basis, and it is continually making machinery adjustments in an attempt to increase production efficiency. Based on this description, you can conclude that A neither Wind nor Vortex is a good candidate for a traditional costing system that allocates overhead on the basis of machine hours. B neither Wind nor Vortex is a good candidate for a traditional costing system that allocates overhead on the basis of direct labor hours. both Wind and Vortex are good candidates for a traditional costing system that allocates overhead on the basis of direct labor hours. D both Wind and Vortex are good candidates for a traditional costing system that allocates overhead on the basis of machine hours. Q4.21: The gas for the van is allocated to the 5 grooming appointments. What type of cost is this? A customer-level cost. B batch-level cost. C product-level cost. D unit-level cost. Q.4.21: Jacqueline owns a nanny service. Which of the following would be a value-added activity for Jacqueline? A Filling up her car with gas for outings with the kids. B Billing clients for services. C Purchasing craft supplies for projects with the kids. D Installing nanny cams in the living room, playroom, and nursery. Q 4.21: Which is an example of a unit-level activity? A Performing quality tests. B Ordering direct materials. C Hiring direct labor. D Preparing purchase orders. Q 4.21: A company manufactures wood spindles used in banisters in homes. It moves wood from inventory to the machine room in quantities varying by type of spindle. Under activity-based costing, the company is most likely to classify moving wood as a(n) _activity. A facility-level B unit-level C product-level D batch-level Q4.21: The Sandy Beach Inn is located on the Oregon coast and caters to an upscale clientele by offering such services as in-room massage, wedding packages, and catered beach picnics. The Sandy Beach Inn is one of 10 hotels owned by Beach Inns, Inc. Beach Inns, Inc.'s corporate overhead be allocated to its various service offerings because it is a(n) ___ _activity. A should; product-level B should not; batch-level C should not; organization-level D should; customer-level Q 4.21: The gas for the van is allocated to the 5 grooming appointments. What type of cost is this? A customer-level cost. B batch-level cost. C product-level cost. D unit-level cost. Q.4.21: MW Company manufactures down-filled comforters and uses an activity-based costing system. During the current period, the company expects to produce 16,500 down-filled comforters using 19,800 direct labor hours and 21,450 machine hours. Additionally, it expects to make 660 orders of down and fabric and to ship 165 completed comforters to its distributors. The order-processing cost pool is $54,120, the shipping cost pool is $14,025, and the product assembly cost pool is $71,280. What is the activity rate for order processing? A $82.00/order B $3.28/unit C $211.25/order D $8.45/unit Q4.21: Paula's Mobile Pet Grooming uses a large van to travel to customers' homes for pet grooming. The van has everything needed for five grooming appointments. Under activity-based costing, the cost of shampoo for Paula's is a ___ cost. A batch-level B unit-level C product-level D customer-level Q4.21: Peterson Painting has compiled the following information related to its ABC system: Activity Cost Pool Cost Driver Activity-Based Overhead Rate Supply procurement Administration Travel Customer management Gallons of paint purchased Number of hours Miles traveled Number of hours Expected Use of Driver 28,250 2,080 10,825 945 $0.44 $18.75 $0.41 $20.65 Based on this information, how much does Peterson plan on spending on overhead related to supply procurement? (Round your answer to the nearest dollar.) A $4,763 B $11,583 $12,430 D $4,438