Question 1

ABC is a ____________ the company's usual costing system.

Group of answer choices

supplement to

organization of

implementation of

replacement for

Question 2

Baxter Battery has 5 activity cost pools. They are as follows:

• Customer Orders - assigned all costs of resources that are consumed by taking and processing customer orders.
• Design Changes - assigned all costs of resources consumed by customer requested design changes.
• Order Size - assigned all costs of resources consumed as a consequence of the number of units produced.
• Customer Relations - assigned all costs associated with maintaining relations with customers.
• Other - assigned all organization-sustaining costs and unused capacity costs.

Customer orders is which of the following?

Group of answer choices

Organization-sustaining activity

Customer-level activity

Product-level activity

Batch-level activity

Unit-level activity

Question 3

ABC systems are used to allocate

Group of answer choices

Direct Material only

Manufacturing Overhead only

Direct Labor only

Overhead

Question 4

Under ABC systems, selling, Administrative, and nonmanufacturing overhead costs are

Group of answer choices

non-volume related

traced to products

disregarded

consumed manufacturing overhead

Question 5

Hickory Company manufactures two products14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all $684,000 of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z:

Activity Cost Pool	Activity Measure	Estimated Overhead Cost		Expected Activity
Machining	Machine-hours	$	200,000	10,000	MHs
Machine setups	Number of setups	$	100,000	200	setups
Product design	Number of products	$	84,000	2	products
General factory	Direct labor-hours	$	300,000	12,000	DLHs

Activity Measure	Product Y	Product Z
Machine-hours	7,000	3,000
Number of setups	50	150
Number of products	1	1
Direct labor-hours	8,000	4,000

What is the companys plantwide overhead rate?

Group of answer choices

$68.4 per direct labor hour

$57 per direct labor hour

$68.4 per machine hour

$57 per machine hour