Grade Details Essay

Question 1.
Question :
Anaheim Corporation operates a highly automated plant that produces various components used in commercial aircraft. If the firm uses activity-based costing, freight charges on goods sent to customers would best be charged to various product-lines on the basis of:

Student Answer:

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direct labor hours.

machine hours.

number of units produced.

number of orders shipped.

Points Received:
0 of 5

Comments:

Question 2.
Question :
The salaries of a manufacturing plant’s management are an example of a:

Student Answer:

facility-level activity.

product-sustaining level activity.

batch-level activity.

unit-level activity.

Points Received:
5 of 5

Comments:

Question 3.
Question :
Elliott Company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs.

The company manufactures tools to customer specifications. The following data pertain to Job 1501: Direct materials used $4,200

Direct labor hours worked 300
Direct labor rate per hour $ 8.00
Machine hours used. 200
Predetermined overhead rate per machine hour $15.00
What is the total manufacturing cost recorded on Job 1501?

Student Answer:

$ 8,800.

$ 9,600.

$10,300.

$11,100.

Points Received:
5 of 5

Comments:

Question 4.
Question :
Wall Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. The company’s estimated costs for the next year are: Direct materials $ 4,500
Direct labor $30,000
Depreciation on factory equipment $ 9,000
Rent on factory $18,000
Sales salaries $43,500
Factory utilities $22,500
Indirect labor $ 9,000
It is estimated that 10,000 direct labor hours will be worked during the year. The predetermined overhead rate will be:

Student Answer:

$10.20.

$ 5.85.

$13.65.

$ 8.85.

Points Received:
0 of 5

Comments:

Question 5.
Question :
Activity-based costing systems:

Student Answer:

often reveal under-costed and over-costed products.

assign overhead to products based on the products’ relative usage of direct labor.

use a single, volume-based cost driver.

use a single, volume-based cost driver.

Points Received:
0 of 5

Comments:

Question 6.
Question :
Heller Cannery, Inc., uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. The company estimated that it would incur $510,000 in manufacturing overhead during the year and that it would work 100,000 machine hours. The company actually worked 105,000 machine hours and incurred $540,000 in manufacturing overhead costs. By how much was manufacturing overhead under- or overapplied for the year?

Student Answer:

$ 4,500 overapplied

$ 4,500 underapplied

$30,000 overapplied

$30,000 underapplied

Points Received:
5 of 5

Comments:

Question 7.
Question :
An accountant recently increased Work-in-Process Inventory and decreased Manufacturing Overhead. The accountant was:

Student Answer:

applying a predetermined overhead amount to production.

recording a year-end adjustment for an insignificant amount of underapplied overhead.

recognizing actual overhead incurred during the period.

recognizing the completion of production.

Points Received:
0 of 5

Comments:

Question 8.
Question :
Which of the following is the proper sequence of events in an activity-based costing system?

Student Answer:

Assignment of cost to products, identification of cost pools, identification of cost drivers, calculation of cost application rates.

Identification of cost pools, identification of cost drivers, calculation of cost application rates, assignment of cost to products.

Identification of cost drivers, identification of cost pools, calculation of cost application rates, assignment of cost to products.

Calculation of cost application rates, identification of cost drivers, identification of cost pools, assignment of cost to products.

Points Received:
5 of 5

Comments:

Question 9.
Question :
Which of the following types of companies would most likely use process costing?

Student Answer:

Textile manufacturers.

Aircraft manufacturers.

Custom-machining firms.

Shipbuilders.

Points Received:
0 of 5

Comments:

Question 10.
Question :
Addison Company produces two products: A and B. Annual production and sales is 1,000 units of Product A and 500 units of Product B. The company uses activity- based costing to determine product costs. The estimated overhead costs and expected activity for each of the company’s three overhead activity centers are as follows:

Expected Cost Driver Activity
Activity Center
Estimated Overhead Costs
Total
Product A
Product B
Activity 1
$20,272
800
500
300
Activity 2
29,380
1,300
800
500
General Factory
21,634
380
200
180
Total
$71,286

What amount of the cost for Activity 2 will be allocated to Product A under the activity-based costing system?

Student Answer:

$14,690

$15,669

$19,587

$18,080

Points Received:
0 of 5

Comments:

* Times are displayed in (GMT-07:00) Mountain Time (US

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