ACCT 212 Read & Interact Wild & Shaw Chapter 4 Activity Based Costing solutions complete answers

ACCT 212 Read & Interact Wild & Shaw Chapter 4 Activity Based Costing solutions complete answers 

 

Advantages of the activity-based costing include: Check all that apply.

 

The departmental overhead rate method uses a three-step process to allocate costs objects. List these steps in the correct order

 

ABC can be used by service providers who usually classify costs by

 

In order for a service provider to use activity-based costing, they should classify costs by   level.

 

One of the characteristics of activity-based costing is that it allows   (more, less) effective control over costs.

 

All of the following are types of activities which cause overhead except:

 

If a company uses activity-based costing, the most appropriate cost driver for the production department would be the:

 

When using activity-based costing, it is very important that the activities in each cost pool are

 

Advantages of the activity-based costing includes:

 

Activities causing overhead include all of the following:

 

Match the activity to the most appropriate cost driver.

 

In activity-based costing, activities in each cost pool should be (similar / dissimilar)  .

 

The basis of the activity-based costing method is a(n)

 

The departmental overhead rate method uses a four-step process to allocate costs objects. List these steps in the correct order

 

The overhead rate method which uses a different overhead rate for each department is the

 

The cost object of the cost assignment under the plantwide overhead rate method is the

 

The basic principle of activity-based costing is that a(n)  is what causes overhead cost to be incurred.

 

True or false: The departmental overhead rate method uses a three-step process where costs are assigned to cost pools in the first step and overhead rates are computed in the last step.

 

True or false: The cost object of the plantwide overhead rate method is the unit of product.

 

During step 3 of activity-based costing, activity overhead cost pool rates are used to assign overhead costs to final cost objects. Proper determination of activity rates depends on all of the following: (Check all that apply).

 

The fourth step in activity-based costing involves

 

Landen Company uses a single plantwide overhead rate based on direct labor hours. Total budgeted overhead costs are $200,000. Total budgeted direct materials are $50,000 and total budgeted direct labor hours are 80,000. What is the plantwide overhead rate per direct labor hour?

 

A report which focuses on individual customers and shows total profit margin generated by specific customers is known as a        profitability report.

 

During the        (first, second, third, fourth) step in activity-based costing, overhead costs in each activity cost pool are assigned to products.

 

In activity-based costing, an activity cost        (driver, pool) is the factor which causes costs in the pool to be incurred.

 

A report which focuses on providing gross profit margin per customer, is referred to as a

 

The end result of using activity-based costing is

 

During step 3 of activity-based costing, activity overhead cost pool rates are used to assign overhead costs to final cost objects. Proper determination of activity rates depends on all of the following:

 

Tracing overhead costs to activity cost pools is the        (first, second, third, fourth) step in activity-based costing.

 

Computing activity rates which are used to assign overhead costs to products in activity-based costing is determined in step        (1,2,3,4).

 

Johnson Company has the following overhead costs: machine setup $25,000; factory maintenance $10,000; heating and lighting $15,000; and selling expenses of $5,000. What is the total overhead costs using activity-based costing?

 

Which of the following are a type of overhead allocation method? (Check all that apply).

 

The basic principle of activity-based costing is a(n)      .

 

A collection of costs related to a similar activity is a(n)        cost pool.

 

       (Facility, Product, Batch) level activities are focused on the whole facility. 

 

The overhead rate method which uses a different overhead rate for each production department is the

 

Landen Company uses a single plantwide overhead rate of $100 per direct labor hour (DLH). Landen has two products as follows: basic chairs which used 20 DLH and deluxe chairs which used 35 DLH. What is the total amount allocated to these products?

 

____ (Identifying, Assigning,Tracing) activities is the first step in applying activity-based costing. 

 

What is the second step in activity-based costing?

 

Select all correct answers. The basis of the activity-based costing method is a(n)

 

An activity cost pool is a

 

An activity which is related to the facility capacity as a whole is a

 

Each of the following are types of        allocation methods: plantwide rate method, departmental overhead rate method and activity-based costing method.

 

The first step in applying activity-based costing is

 

True or false: The plantwide overhead rate method uses multiple rates to allocate overhead costs to products.

 

A company has the following activities and costs: machine setup of $500,000; machine repair of $100,000; and heating and lighting of $250,000. Using this information, factory utilities are $      .

 

In activity-based costing, the factor which drives costs and causes costs in the pool to be incurred is a

 

The        overhead rate method uses a different overhead rate per production department.