College Acct 2 Review- Ch. 4, 5, 6, 7

Front

What is the primary benefit of activity-based costing?

Back

More accurate product costing.

Front

As the complexity of a product's manufacturing operation increases, what will likely happen to the number of activities and cost drivers used in an activity-based cost system?

Back

increase.

Front

Activity-based costing is most appropriate to use when labor costs are a(n) __________ proportion of total product costs and the manufacturing process is ____________.

Back

decreasing, complex

Front

Back

$369,879

Front

Back

$38.44

Front

Purchase order processing is an example of a:

Back

Batch-level activity.

Front

Back

$91.81 per setup

Front

What is the correct price per MH? Options: $23.40 per MH, $95.86 per MH, $18.33 per MH, $43.09 per MH

Back

$18.33 per MH

Front

Back

$28.48 per DLH

Front

The total materials handling cost for the year is expected to be $370,590. If the materials handling cost is allocated on the basis of direct labor-hours, the total materials handling cost allocated to the prefab barns is closest to:

Back

$129,195.00