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| 1 | |
In activity-based costing, final cost allocations assign costs to: |
| | A) | activities |
| | B) | production departments |
| | C) | support departments |
| | D) | cost objects |
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| 2 | |
In activity-based costing, the first step in estimating costs is measuring the cost of: |
| | A) | activities |
| | B) | production departments |
| | C) | support departments |
| | D) | cost objects |
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| 3 | |
Conventional product costing systems used where product diversity has increased, cost structures have become more overhead-intensive and a higher proportion of overhead costs are fixed costs can result in: |
| | A) | overstating the cost of high-volume, relatively simple product lines and understating the costs of low-volume, speciality product lines |
| | B) | understating the cost of high-volume, relatively simple product lines and overstating the costs of low-volume, speciality product lines |
| | C) | understating the cost of both high-volume and low-volume product lines |
| | D) | overstating the cost of both high-volume and low-volume product lines |
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| 4 | |
Tableco will manufacture two types of tables in the coming year - square tables and round tables. Tableco is considering introducing an activity-based costing system. Below is each activity, its cost and related activity driver: Activity | Cost | Activity driver | Machine setups | $500 000 | Number of setups | Materials handling | 96 000 | Number of parts | Cutting | 48 000 | Number of parts | Assembly | 2 100 000 | Direct labour hours | Finishing | 350 000 | Number of units |
The level of activity estimated for the year is:
| Square | Round | Units to be produced | 25 000 | 10 000 | Number of setups | 100 | 25 | Number of parts per unit | 32 | 16 | Direct labour hours per unit | 4 | 2 |
Under the activity-based costing system, the activity cost per unit of activity driver for machine setups is: |
| | A) | $16 per unit |
| | B) | $10 per unit |
| | C) | $4000 per setup |
| | D) | $5000 per setup |
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| 5 | |
Tableco will manufacture two types of tables in the coming year - square tables and round tables. Tableco is considering introducing an activity-based costing system. Below is each activity, its cost and related activity driver: Activity | Cost | Activity driver | Machine setups | $500 000 | Number of setups | Materials handling | 96 000 | Number of parts | Cutting | 48 000 | Number of parts | Assembly | 2 100 000 | Direct labour hours | Finishing | 350 000 | Number of units |
The level of activity estimated for the year is:
| Square | Round | Units to be produced | 25 000 | 10 000 | Number of setups | 100 | 25 | Number of parts per unit | 32 | 16 | Direct labour hours per unit | 4 | 2 |
Under the activity-based costing system, the activity cost per unit of activity driver for materials handling is: |
| | A) | $2 per part |
| | B) | $0.10 per part |
| | C) | $3.20 per unit |
| | D) | $1.60 per unit |
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| 6 | |
Tableco will manufacture two types of tables in the coming year - square tables and round tables. Tableco is considering introducing an activity-based costing system. Below is each activity, its cost and related activity driver: Activity | Cost | Activity driver | Machine setups | $500 000 | Number of setups | Materials handling | 96 000 | Number of parts | Cutting | 48 000 | Number of parts | Assembly | 2 100 000 | Direct labour hours | Finishing | 350 000 | Number of units |
The level of activity estimated for the year is:
| Square | Round | Units to be produced | 25 000 | 10 000 | Number of setups | 100 | 25 | Number of parts per unit | 32 | 16 | Direct labour hours per unit | 4 | 2 |
Under the activity-based costing system, the activity cost per unit of activity driver for assembly is: |
| | A) | $70 per unit |
| | B) | $35 per unit |
| | C) | $17.50 per hour |
| | D) | $21 per hour |
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| 7 | |
Tableco will manufacture two types of tables in the coming year - square tables and round tables. Tableco is considering introducing an activity-based costing system. Below is each activity, its cost and related activity driver: Activity | Cost | Activity driver | Machine setups | $500 000 | Number of setups | Materials handling | 96 000 | Number of parts | Cutting | 48 000 | Number of parts | Assembly | 2 100 000 | Direct labour hours | Finishing | 350 000 | Number of units |
The level of activity estimated for the year is:
| Square | Round | Units to be produced | 25 000 | 10 000 | Number of setups | 100 | 25 | Number of parts per unit | 32 | 16 | Direct labour hours per unit | 4 | 2 |
Under the activity-based costing system, the activity cost per unit of activity driver for cutting is: |
| | A) | $2 per part |
| | B) | $3.20 per unit |
| | C) | $1.60 per unit |
| | D) | $0.05 per part |
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| 8 | |
Tableco will manufacture two types of tables in the coming year - square tables and round tables. Tableco is considering introducing an activity-based costing system. Below is each activity, its cost and related activity driver: Activity | Cost | Activity driver | Machine setups | $500 000 | Number of setups | Materials handling | 96 000 | Number of parts | Cutting | 48 000 | Number of parts | Assembly | 2 100 000 | Direct labour hours | Finishing | 350 000 | Number of units |
The level of activity estimated for the year is:
| Square | Round | Units to be produced | 25 000 | 10 000 | Number of setups | 100 | 25 | Number of parts per unit | 32 | 16 | Direct labour hours per unit | 4 | 2 |
Under the activity-based costing system, the activity cost per unit of activity driver for finishing is: |
| | A) | $10 per unit |
| | B) | $35 per unit |
| | C) | $1 per unit |
| | D) | $100 per unit |
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| 9 | |
Tableco will manufacture two types of tables in the coming year - square tables and round tables. Tableco is considering introducing an activity-based costing system. Below is each activity, its cost and related activity driver: Activity | Cost | Activity driver | Machine setups | $500 000 | Number of setups | Materials handling | 96 000 | Number of parts | Cutting | 48 000 | Number of parts | Assembly | 2 100 000 | Direct labour hours | Finishing | 350 000 | Number of units |
The level of activity estimated for the year is:
| Square | Round | Units to be produced | 25 000 | 10 000 | Number of setups | 100 | 25 | Number of parts per unit | 32 | 16 | Direct labour hours per unit | 4 | 2 |
Under the activity-based costing system, the cost per unit of setups for square tables is: |
| | A) | $16 per unit |
| | B) | $10 per unit |
| | C) | $160 per unit |
| | D) | $100 per unit |
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| 10 | |
Tableco will manufacture two types of tables in the coming year - square tables and round tables. Tableco is considering introducing an activity-based costing system. Below is each activity, its cost and related activity driver: Activity | Cost | Activity driver | Machine setups | $500 000 | Number of setups | Materials handling | 96 000 | Number of parts | Cutting | 48 000 | Number of parts | Assembly | 2 100 000 | Direct labour hours | Finishing | 350 000 | Number of units |
The level of activity estimated for the year is:
| Square | Round | Units to be produced | 25 000 | 10 000 | Number of setups | 100 | 25 | Number of parts per unit | 32 | 16 | Direct labour hours per unit | 4 | 2 |
Under the activity-based costing system, the activity cost per square table is: |
| | A) | $100.80 per unit |
| | B) | $57.40 per unit |
| | C) | $94.80 per unit |
| | D) | $63.40 per unit |
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