137A

Ch. 3 The total manufacturing costs added to production within a schedule of cost of goods manufactured is calculated using which of the following equations?

• DM + DL - actual MOH in WIP

• DM + DL + MOH Applied in WIP

• DM + DL + actual MOH in WIP

• DM - DL - MOH Applied in WIP

Ch.7 Parts administration is an example of a:

• Unit-level activity

• Batch-level activity

• Product-level activity

• Organization-sustaining

Ch.7 Which of the following statements is true?

I. Ib the second-stage allocation in activity-based costing, costs that were not allocated in the first stage are assigned to the company's most profitable products.

II. In the second-stage allocation in activity-based costing, activity rates are used to apply overhead to products and customers.

• I and II

• Only I

• Only II

• None of the above

Ch.7 Which of the following statements is true?

I. When a company shifts from a traditional cost system in which manufacturing overhead is applied based on direct labor-hours to an activity-based costing system with batch-level and product-level costs, the unit product costs of high volume products typically decrease whereas the unit product costs of low volume products typically increase.

Il. Managing and sustaining product diversity requires many more overhead resources such as production schedulers and product design engineers than managing and sustaining a single product. The costs of these resources can be accurately allocated to products using activity-based costing than traditional costing which is based entirely on direct labor-hours.

• I and II

• Only I

• Only II

• None of the above

Ch.7 Relying exclusively on unit-level overhead allocation is most likely to:

• Undercost all products

• Overcost all products

• Overcost low-volume products

• Overcost high-volume products

ch.7 An activity cost pool is:

• • a type of duration driver used in activity-based costing systems.

• • an allocation base in an activity-based costing system.

• • an event that causes the consumption of overhead resources.

• • a "bucket" in which costs are accumulated in an activity-based costing system.

Ch.7 An activity measure is:

• • a type of duration driver used in activity-based costing systems.

• • an allocation base in an activity-based costing system.

• • an event that causes the consumption of overhead resources.

• • a "bucket" in which costs are accumulated in an activity-based costing system.

Ch.7 Which of the following statements is true?

• • Unit-level activities are performed each time a batch is produced.

• • Unit-level activities are performed each time a unit is produced.

• • Unit-level activities are performed each time a new product is introduced.

• • Unit-level activities are performed each time a customer places an order.

Ch.7 Which of the following statements is true?

• • A batch-level activity cost will decrease as the number of units in the batch increases.

• • A batch-level activity cost will increase as the number of units in the batch increases.

• • A batch-level activity cost is unaffected by the number of units in the batch.

• • Batch-level activity costs are often used in traditional absorption costing systems to allocate batch-level costs.

Ch.7 Which of the following statements is true?

• • A product-level activity cost will decrease as the number of products produced increases.

• • A product-level activity cost will increase as the number of products produced increases.

• • A product-level activity cost is unaffected by the number of units produced.

• • Product-level activity costs are often used in traditional absorption costing systems to allocate product-level costs.