Multiple Questions Answers
Validated Tutorials1. A duration driver is :
a. A simple count of the number of times an activity occurs.
b. An activity measures that is used for the life of an activity- based costing system.
c. An activity measures that is used for the life of company.
d. A measures of the amount of time required to perform an activity.
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
- 8 years ago
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