Managerial Accounting - Exam 2

Machining Parts

• Unit-level

• Product-level

• Batch-level

• Facility-level

Purchasing Raw Materials

• Unit-level

• Product-level

• Batch-level

• Facility-level

Factory Property Taxes

• Unit-level

• Product-level

• Batch-level

• Facility-level

Product Design

• Unit-level

• Product-level

• Batch-level

• Facility-level

Assembling Parts

• Unit-level

• Product-level

• Batch-level

• Facility-level

Predetermined overhead rate _____ % of direct labor costs

Compute the overhead rates using the activity-based costing approach

Machining: ______ per machine hour

Compute the overhead rates using the activity-based costing approach

Machine setup : ______ per setup hour

Identify a cost driver that may be used to assign each cost pool:

Machine setup, indirect materials

• Engineering Hours

• Number of Setups

• Machine Hours

• Number of Tests

Identify a cost driver that may be used to assign each cost pool:

Depreciation, machinery

• Engineering Hours

• Number of Setups

• Machine Hours

• Number of Tests