chap 3 quiz 2

Quiz Submissions - Practice Quiz - Chapter 3

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Maurice Anderson (username: meanderson6)

Attempt 2
Written: Jan 27, 2015 7:38 PM - Jan 27, 2015 8:45 PM
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Chapter 3 Practice Questions

Question 1

1 / 1 point
Aujla Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:

The activity rate for the batch setup activity cost pool is closest to:

a)
$70.40

b)
$29.40

c)
$26.10

d)
$234.90

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Activity rate = Estimated overhead cost ÷ Expected activity = $234,900 ÷ 9,000 setups = $26.10 per setup

Question 2

1 / 1 point
Accola Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 1,100 units and of Product B is 700 units. There are three activity cost pools, with estimated costs and expected activity as follows:

The activity rate for Activity 3 is closest to:

a)
$119.72

b)
$116.18

c)
$26.67

d)
$56.70

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Activity rate = Estimated overhead cost ÷ Expected activity = $48,762 ÷ 860 = $56.70

Question 3

1 / 1 point
Activity rates from Quattrone Corporation's activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products:

Last year, Product F76D included the following activities: 2 customer orders, 434 assembly hours, and 20 batches. How much overhead cost would be assigned to Product F76D using the activity-based costing system?

a)
$1,041.80

b)
$2,000.04

c)
$66,908.88

d)
$146.73

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Question 4

1 / 1 point
When switching from a traditional costing system to an activity-based costing system that includes some batch-level costs:

a) the unit product costs of high volume products typically change less than the unit product costs of low volume