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1. Unit-based product costing uses which procedure?

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1. Unit-based product costing uses which procedure?;All overhead costs are expensed as incurred.;Overhead costs are traced to departments, then costs are traced to products.;Overhead costs are traced directly to products.;Overhead costs are traced to activities, then costs are traced to products.;2. For a labor-intensive manufacturing operation, which would be the most appropriate activity driver?;Machine hours;Direct labor hours;Number of employees;Units of output;3. Which is NOT a characteristic of a unit-based costing system?;It uses traditional product costing definitions.;It uses unit-based activity drivers to assign overhead to products.;It offers greater product costing accuracy than an activity-based costing system.;It is cheaper than an activity-based costing system.;4. 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 $120,000;Indirect labor $25,000;Direct labor (10,000 hours) $145,000;Depreciation of factory building $55,000;Other factory overhead $85,000;Increase in work-in-process inventory $25,000;Factory overhead rate per direct labor hour $15;Which is the amount of under- or overapplied overhead for Star Inc.?;$25,000 overapplied;$15,000 overapplied;$25,000 underapplied;$15,000 underapplied;5. 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.;Product# of SetupsMachine HoursPacking Orders;Anvils1050075;Barrels102,000175;Cost per Pool $10,000 $60,000 $18,750;What is the allocation rate for barrels per setup using activity-based costing?;$500;$1000;$10,000;$2,000;6. Which is NOT a limitation of a plantwide overhead rate?;Product diversity may consume overhead activities under differing consumption ratios.;Overhead usage is not strictly linked to the units produced because some products are more complex and diverse than others.;Predetermined rates using budgeted overhead are usually the best estimate of the amount of overhead.;Overhead costs tend to be underallocated to highly complex products.;7. The resources consumed by the activity in producing its output are called;value-added activities.;activity outputs.;driver analyses.;activity inputs.;8. Which is NOT part of the cost dimension of the activity-based management model?;Resources;Driver analysis;Activities;Cost objects;9. Non-value-added activities;are unnecessary inputs.;are valued outputs to internal users.;are valued outputs to external users.;help meet the organization's needs, not the product needs.;10. The process that focuses on non-value-added activities is called;activity sharing.;activity reduction.;activity selection.;activity elimination.

 

Paper#80646 | Written in 18-Jul-2015

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