ACCT 241 Week 7 Quiz

ACCT 241 Week 7 Quiz | Assignment Help | American University 

1.

Providing the power required to run production equipment is an example of a:

Multiple Choice

·         Unit-level activity.

·         Batch-level activity.

·         Product-level activity.

·         Organization-sustaining activity.

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2.

Guerra Electronics manufactures a variety of electronic gadgets for use in the home. Which of the following would probably be the most accurate measure of activity to use for allocating the costs of inspecting the finished products at Guerra?

Multiple Choice

·         Machine-hours

·         Direct labor-hours

·         Inspection time

·         Number of inspectionsTop of Form

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3.

Which of the following would be an acceptable measure of activity for a material handling activity cost pool?

Multiple Choice

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·         Option A

·         Option B

·         Option C

·         Option D

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4.

Departmental overhead rates may not correctly assign overhead costs due to:

Multiple Choice

·         the use of direct labor hours in allocating overhead costs to products rather than machine time or quantity of materials used.

·         the high correlation between direct labor-hours and the incurrence of overhead costs.

·         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.

·         difficulties associated with identifying cost pools for the first stage of the allocation process.Top of Form

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5.

When switching from a traditional costing system to an activity-based costing system that contains some batch-level costs:

Multiple Choice

·         the unit product costs of both high and low volume products typically increase.

·         the unit product costs of both high and low volume products typically decrease.

·         the unit product costs of high volume products typically increase and the unit product costs of low volume products typically decrease.

·         the unit product costs of high volume products typically decrease and the unit product costs of low volume products typically increase.Top of Form

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6.

Mayeux Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity-based costing system:

Distribution of resource consumption:

How much cost, in total, would be allocated in the first-stage allocation to the Setting Up activity cost pool?

Multiple Choice

·         Top of Form

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·         $360,000

·         $336,000

·         $288,000

·         $348,000

7.

Bennette Corporation has provided the following data concerning its overhead costs for the coming year:

The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year:

The Other activity cost pool does not have a measure of activity; it is used to accumulate costs of idle capacity and organization-sustaining costs.

The distribution of resource consumption across activity cost pools is given below:

The activity rate for the Order Processing activity cost pool is closest to:

Multiple Choice

·         $430 per order

·         $420 per order

·         $360 per order

·         $440 per orderTop of Form

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8.

Paparo Corporation has provided the following data from its activity-based costing system:

Data concerning the company's product Q79Y appear below:

According to the activity-based costing system, the average cost of product Q79Y is closest to: 

Multiple Choice

·         $133.29 per unit

·         $85.03 per unit

·         $127.43 per unit

·         $129.94 per unitTop of Form

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9.

Kulka Corporation manufactures two products: Product F82D and Product T05P. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products F82D and T05P.

Using the ABC system, how much total manufacturing overhead cost would be assigned to Product T05P?

Multiple Choice

•        $156,000

•        $303,000

•        $147,000

•        $304,500Top of Form

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10.

Annika Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 4,000 units and of Product B is 1,000 units. There are three activity cost pools, with total cost and activity as follows:

The activity-based costing cost per unit of Product A is closest to:

Multiple ChoiceTop of Form

·         $20.40

·         $10.00

·         $18.15

·         $17.00Bottom of Form