To use activity-based costing, it is necessary to know the a. expected use of cost drivers...
To use activity-based costing, it is necessary to know the a. expected use of cost drivers per product. b.all of these. c.bcost driver for each activity cost pool. d.expected use of cost drivers per activity.
Homework Answers
Activity based Costing is a method for allocating overheads to those items which actually uses it.It assigns manufacturing overhead to product in the way they are actually use.It assigns cost to product, service based on the activities that goes into it.
Answer is B
Overhead is allocated to activity cost pools, each of which is a distinct type of activity,ABC first allocates costs to activities, and then to the products based on each product’s use of those activities.
Estimated overhead per activity/Expected use of cost driver=Activity based overhead rate
So all these are necessary to know.
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To use activity-based costing, it is necessary to know the a.
expected use of cost drivers...
Select the incorrect statement regarding the use of cost drivers in activity based costing systems. Multiple...
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5. Peter Company has the following pools, drivers and pool rates for its activity-based costing system:...
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(Ch4) The first step in activity-based costing is to Select one: O a. assign manufacturing overhead...
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The last step in activity-based costing is to identify the cost driver that has a strong...
The last step in activity-based costing is to
identify the cost driver that has a strong correlation to the
activity cost pool.
assign overhead costs to products, using overhead rates
determined for each cost pool.
identify and classify the activities involved in the
manufacture of specific products, and allocate overhead to cost
pools.
compute the activity-based overhead rate per cost driver.
Ch 17: Activity-Based Costing Saved Xie Company identified the following activities, costs, and activity drivers for...
Ch 17: Activity-Based Costing Saved Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go- karts: Deluxe and Basic. points Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected Costs $700,000 975,000 180,000 250,000 375,000 150,000 Expected Activity 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models eBook Print Assume that the following information is available for the company's...
Zwahlen Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other...
Zwahlen Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other Costs in the Processing cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. Data concerning the two products and the company's costs and activity-based costing system appear below: Activity Cost Pools Processing Setting Up...
X Company makes two products, A and B, and uses an activity-based costing overhead allocation system,...
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Select the incorrect statement regarding the use of cost drivers in activity based costing systems. Multiple Choice O ABC uses volume-based and activity based cost drivers. 0 Volume based drivers are most appropriate for costs that are affected by the number of units produced 0 ABC's use of multiple cost drivers will produce less accurate unit costs when a company produces many different products that require different types and levels of overhead costs. 0 An arbitrary cost driver must be...
5. Peter Company has the following pools, drivers and pool rates for its activity-based costing system: Pool Driver Rate Machining Machine Hours $60 per machine hour Ordering of Parts Number of Orders $180 per order Design Design Hours $600 per design hour Customer Customers $2,200 per customer Other n/a n/a Becca Company placed an order with Peter for 1,800 units of a custom product. The order required $90,000 worth of direct material and $36,000 worth of direct labor. The order...
(Ch4) The first step in activity-based costing is to Select one: O a. assign manufacturing overhead costs for each activity cost pool to products. O b. identify and classify the major activities involved in the manufacture of specific products. O c. calculate the activity-based overhead rate per cost driver. O d. identify the cost driver that has a strong correlation to the activity cost pool. (Ch4) Activity-based costing Select one: O a. uses direct labor as its primary cost driver....
The last step in activity-based costing is to
identify the cost driver that has a strong correlation to the
activity cost pool.
assign overhead costs to products, using overhead rates
determined for each cost pool.
identify and classify the activities involved in the
manufacture of specific products, and allocate overhead to cost
pools.
compute the activity-based overhead rate per cost driver.
Ch 17: Activity-Based Costing Saved Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types of go- karts: Deluxe and Basic. points Activity Handling materials Inspecting product Processing purchase orders Paying suppliers Insuring the factory Designing packaging Expected Costs $700,000 975,000 180,000 250,000 375,000 150,000 Expected Activity 100,000 parts 1,500 batches 700 orders 500 invoices 40,000 square feet 2 models eBook Print Assume that the following information is available for the company's...
Zwahlen Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other Costs in the Processing cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. Data concerning the two products and the company's costs and activity-based costing system appear below: Activity Cost Pools Processing Setting Up...
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