ACCT 344 Week 3 Quiz

ACCT 344 Week 3 Quiz

1. (TCO 8) A predetermined overhead rate is calculated using which formula?

2. (TCO 8) All of the following are unit-based activity drivers EXCEPT

3. (TCO 8) A department that is capital intensive most likely would use a predetermined departmental overhead rate based on which activity base?

4. (TCO 8) Star Inc. uses a job-order costing system to account for product costs.
The following information was provided for the current year.
Materials placed in production                           $160,000 
Indirect labor                                                      $50,000 
Direct labor (10,000 hours)                                $180,000 
Depreciation of factory building                          $80,000 
Other factory overhead                                      $130,000 
Increase in work-in-process inventory                $45,000 
Factory overhead rate per direct labor hour        $25
Which is the amount of under- or overapplied overhead for Star Inc.?

5. (TCO 8) Acme Company manufactures two products (anvils and barrels).
Overhead costs ($84,000) have been divided into three cost pools, which use the following activity drivers.

What is the allocation rate for barrels per machine hours using activity-based costing?

6. (TCO 8) Which is NOT a limitation of a plantwide overhead rate?

7. (TCO 8) The resources consumed by the activity in producing its output are called

8. (TCO 8) Which is NOT part of the cost dimension of the activity-based management model?

9. (TCO 8) Which is an example of a non-value-added manufacturing activity?

10. (TCO 8) The process that involves choosing among various sets of activities that are caused by competing strategies is called