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

What is the primary benefit of activity-based costing?

• The cost of implementation.

• Arbitrary allocations of overhead costs.

• More cost pools.

• More accurate product costing.

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

• decrease.

• stay about the same.

• increase.

• vary randomly.

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

• decreasing, complex

• large, uncomplicated

• increasing, complex

• small, uncomplicated

• $249,264

• $443,424

• $369,879

• $360,294

• $115.33

• $38.44

• $84.56

• $36.24

Purchase order processing is an example of a:

• Batch-level activity.

• Product-level activity.

• Facility-level activity.

• Unit-level activity.

• $73.57 per setup

• $26.24 per setup

• $28.32 per setup

• $91.81 per setup

• $23.40 per MH

• $95.86 per MH

• $18.33 per MH

• $43.09 per MH

• $47.04 per DLH

• $411.84 per DLH

• $51.75 per DLH

• $28.48 per DLH

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: (Round your intermediate calculations to 2 decimal places.)

• $233,334.44

• $118,028.82

• $192,881.00

• $129,195.00