Question 2 (1 point) Zeta Company has the following two customers: Question 3 (1 point) Meadow Forest The shipping activity at Novelty Company uses three indirect labour resources: Question 1 (1 point) Sales $900,000 $800,000 pickers, wrappers, and shippers. Pickers are paid $120 per day. Wrappers are paid Cost of Goods Sold 360,000 160,000 $180 per day. Shippers are paid $150 per day. All workers work 8 hours a day and Which of the following conditions can lead to significant costing differences MSDA expenses (Costs to serve the are allowed 30 minutes for lunch, a 15-minute break in the morning, and a 15- reported by traditional costing systems and activity-based costing systems? customer) excluding sales commissions 640,000 130,000 minute break in the afternoon. All three other choices. If the company pays a 4% sales commission based on customer margin, this wil encourage a salesperson's efforts to sell to: The shipping activity for order 229 will require 28 picker-minutes, 14 wrapper- minutes, and 7 shipper-minutes. The cost of indirect resources is high relative to direct costs There are significant differences in rate of overhead resource use by the Meadow, an unprofitable customer. Using an activity-based costing approach, what is the total cost of the shipping different cost objects Forest, a profitable customer. activity for order 229? There are significant differences in the cost driver rates of different overhead Forest, an unprofitable customer. resources. $16.50 Meadow, a profitable customer. $14.44 $7.50 $17.25 Question 4 (1 point) During 2020, two customers, Wellness Drugs and Homecare, are expected to use Question 5 (1 point) Paris Printers has contracts to complete weekly supplements required by forty-two the following printing services: customers. For the year 2020, manufacturing overhead cost estimates total A primary reason for assigning selling and distribution costs to products and $1,840,000 for an annual production capacity of 20 million pages. Wellness Home Care customers for analytical purposes is: Activity Drugs For 2020 Paris Printers has decided to evaluate the use of additional cost pools. Pages Printed 0,00 56,000 to justify a varied product mix After analyzing manufacturing overhead costs, it was determined that the number of 7 4 that controllers are required to assign all costs when valuing inventories for design changes, setups, and inspections is the primary manufacturing overhead cost Design changes Setups 10 10 financial reporting purpose. drivers. Inspections 20 18 that all indirect costs must be assigned before year-end. The following information was gathered during the analysis: that different products, and customers require different quantities of selling and distribution activities. Manufacturing Using the three cost pools to allocate overhead costs, what is the total Cost pool Overhead Activity Level Design changes manufacturing overhead cost estimate for Wellness Drugs during 2020? Question 6 (1 point) $ 520,000 400 design changes Setups 040,000 8,000 setups The whale curve: Inspections 280,000 14,000 inspections $10,192 Total manufacturing overhead $10,800 graphs profits versus customers. costs $1,840,000 $5,400 finds that the most profitable 20% of customers generate about 180% of sales revenue. During 2020, two customers, Wellness Drugs and Homecare, are expected to use $9,100 finds that 80% of costs are generated by 20% of the customers the following printing services: graphs sales revenue versus customers Question 7 (1 point) Question 9 (1 point) With volume-based (traditional) costing systems, products manufactured in large What is this company's net promoter score (NPS)? batches and in large annual volumes may be __ because batch-related and food store chain conducted a customer survey. One question asked "how likely product-sustaining costs are assigned using volume-based cost drivers. s it that you would recommend our store to a friend or colleague?". The responses 50% were collected using a 10-point scale (1 being extremely unlikely, and 10 being very undercosted likely). The data of the responses are presented below. ONone of the other choices. O fairly costed 28.33% affected in an unknown way Score Count of Responses 10 16.67% overcosted 20 Question 8 (1 point) 30 Question 10 (1 point) n of the following is not an option to transform breakeven or loss customers 40 Which of the following treatments does your text recommend for dealing with the into profitable ones? 200 cost of unused capacity under time-driven activity-based costing? 700 Use less menu-based pricing that allows customers to select features and Charge the amount to the organizational unit that is responsible for acquiring services they wish to pay for. 1,000 the capacity. Improve margins by lowering costs. 2,000 1,200 The text takes no position on this issue. O Improve the process used to produce, sell, deliver and service the customers. Use more discipline in granting discounts and allowances. 800 Allocate the amount between products that were produced during the period. Total 5,000 Allocate the amount between ending work-in-process and finished goods inventory