Multiple choice
1 . McCaskey Corporation used an activity-based costing system with the following three activity cost pools:
Activity cost pool | Total activity | |
Fabrication | 40,000 | Machine hours |
Order processing | 500 | Others |
Other | N/A | |
The other activity cost pool is used to accumulate cost of idle capacity and organization- sustaining cost.
The has providing the following data concerning it cost:
Wages and Salaries | $469,000 |
Depreciation | $191,000 |
Occupancy | $120,000 |
Total | $780,000 |
The distribution of resource consumption across activity cost pool is given below:
| Activity cost pools |
| ||
| Fabrication | Order processing | Other | Total |
Wages and Salaries | 20% | 60% | 20% | 100% |
Depreciation | 20% | 25% | 55% | 100% |
Occupancy | 20% | 45% | 35% | 100% |
The activity rate for the fabrication activity cost pool is closed to:
a. $0.65 per machine- hour
b. $3.90 per machine-hour
c. $4.88 per machine- hour
d. 2.25 per machine-hour
2. Spendlove corporation has provided the following data from its activity-based costing system
Activity cost pool | Total cost | Total activity | |
Assembly | $1,282,140 | 61,200 | Machine- hours |
Processing orders | $53,958.00 | 20,40 | Orders |
Inspection | $181,350 | 23,40 | Inspection- hour |
The company makes 1,100 units of product S78N a year, requiring a total of 12,00 machine hours, 131 orders, and 31 inspection-hour per year. The product’s direct material cost is $50,89 per units and its direct labor cost is $20.56 per unit. The product sells of $113.30 per unit.
According to the activity-based costing system, the product margin for product S78N is : (Round your intermediate calculation to 2 decimal place).
a. $117,430.05
b. $46,035.00
c. $18,492.05
d. $15,027.55
3.Matt Company used activity- based costing. The company has two product. A and B. the annual production and sales of product A is 9,000 units and of product B is 6,500 units. There are three activity cost pool with total activity as follow:
|
| Total Activity | ||
Activity Cost Pool | Total Cost | Product A | Product B | Total |
Activity 1 | $36,260 | 250 | 350 | 700 |
Activity 2 | $48,037 | 880 | 330 | 1,210 |
Activity 3 | $120,450 | 850 | 3,530 | 4,380 |
The activity based costing cost per unit of product Ais closest to:
a. $14.33
b. $4.54
c. $7.84
d. $3.94
4. The controller Ferrence Company estimates the amount of material handing overhead cost that should be allocated to the company’s two product using the data that are given below:
| Wall Mirrors | Specialty Windows |
Total Expected Units Produced | 11,900 | 1,710 |
Total Expected Material Moves | 1,190 | 1,610 |
Expected Direct Labor- Hour Per Unit | 7 | 8 |
The total material handing cost for the year is expected to be $17,148.70.
If the material handing cost is allocated on the basis of direct labor- hours, how much of the total material handing cost would e allocated to the wall mirrors?
a. $9,566
b. $14,727
c. $12,894
d. $7,917
12 years ago
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