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133) Alexander Inc. uses activity-based costing. The company produces two

Question : 133) Alexander Inc. uses activity-based costing. The company produces two : 1876954

133) Alexander Inc. uses activity-based costing. The company produces two products: Snaps and Pops. The expected annual production of Snaps is 1,500 units, while the expected annual production of Pops is 2,200 units. There are three activity cost pools: Assembly, Testing, and Packing. The estimated costs and activities for each of these three activity pools follows:

The cost pool activity rate for Testing would be

A) $21.43 per activity.

B) $13.90 per activity.

C) $39.56 per activity.

D) $6.95 per activity.

134) Alexander Inc. uses activity-based costing. The company produces two products: Snaps and Pops. The expected annual production of Snaps is 1,500 units, while the expected annual production of Pops is 2,200 units. There are three activity cost pools: Assembly, Testing, and Packing. The estimated costs and activities for each of these three activity pools follows:

The overhead cost per unit of Pops would be closest to

A) $15.30.

B) $5.32.

C) $7.80.

D) $31.00.

135) Vandalay Industries manufactures two products: toasters and blenders. The annual production and sales of toasters is 2,200 units, while 1,500 units of blenders are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Toasters require 1.25 direct labor hours per unit, while blenders require .75 direct labor hours per unit. The total estimated overhead for the period is $149,115. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it would have the following three activity cost pools:

The predetermined overhead allocation rate using the traditional costing system would be closest to

A) $40.30 per direct labor hour.

B) $132.55 per direct labor hour.

C) $54.22 per direct labor hour.

D) $38.48 per direct labor hour.

136) Vandalay Industries manufactures two products: toasters and blenders. The annual production and sales of toasters is 2,200 units, while 1,500 units of blenders are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Toasters require 1.25 direct labor hours per unit, while blenders require 1 direct labor hours per unit. The total estimated overhead for the period is $149,115. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it would have the following three activity cost pools:

The overhead cost per Blenders using the traditional costing system would be closest to

A) $28.86.

B) $38.48.

C) $99.41.

D) $21.55.

137) Vandalay Industries manufactures two products: toasters and blenders. The annual production and sales of toasters is 2,200 units, while 1,500 units of blenders are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Toasters require 1.25 direct labor hours per unit, while blenders require 1 direct labor hours per unit. The total estimated overhead for the period is $149,115. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it would have the following three activity cost pools:

The cost pool activity rate for Engineering Costs would be closest to

A) $13.00 per engineering hour.

B) $42.00 per engineering hour.

C) $18.00 per engineering hour.

D) $63.09 per engineering hour.

138) Vandalay Industries manufactures two products: toasters and blenders. The annual production andsales of toasters is 2,200 units, while 1,500 units of blenders are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Toasters require 1.25 direct labor hours per unit, while blenders require 1 direct labor hours per unit. The total estimated overhead for the period is $149,115. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it would have the following three activity cost pools:

The overhead cost per blender using an activity-based costing system would be closest to

A) $27.72.

B) $73.00.

C) $99.41.

D) $40.66.

139) Vintage Fun reproduces old-fashioned style roller skates and skateboards. The annual production and sales of roller skates is 950 units, while 1,750 skateboards are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Roller skates require 2.5 direct labor hours per unit, while skateboards require 1.25 direct labor hours per unit. The total estimated overhead for the period is $114,300. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it wouldhave the following three activity cost pools:

The predetermined overhead allocation rate using the traditional costing system would be closest to

A) $52.25 per direct labor hour.

B) $48.13 per direct labor hour.

C) $42.33 per direct labor hour.

D) $25.05 per direct labor hour.

140) Vintage Fun reproduces old-fashioned style roller skates and skateboards. The annual production and sales of roller skates is 950 units, while 1,750 skateboards are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Roller skates require 2.5 direct labor hours per unit, while skateboards require 1.25 direct labor hours per unit. The total estimated overhead for the period is $114,300. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it would have the following three activity cost pools:

The overhead cost per skateboard using the traditional costing system would be closest to:

A) $31.32.

B) $25.05.

C) $65.31.

D) $9.31.

141) Vintage Fun reproduces old-fashioned style roller skates and skateboards. The annual production and sales of roller skates is 950 units, while 1,750 skateboards are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Roller skates require 2.5 direct labor hours per unit, while skateboards require 1.25 direct labor hours per unit. The total estimated overhead for the period is $114,300. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it wouldhave the following three activity cost pools:

The cost pool activity rate for Engineering Costs would be closest to

A) $15.00 per engineering hour.

B) $10.00 per engineering hour.

C) $20.00 per engineering hour.

D) $7.54 per engineering hour.

142) Vintage Fun reproduces old-fashioned style roller skates and skateboards. The annual production and sales of roller skates is 950 units, while 1,750 skateboards are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Roller skates require 2.5 direct labor hours per unit, while skateboards require 1.25 direct labor hours per unit. The total estimated overhead for the period is $114,300. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it would have the following three activity cost pools:

The overhead cost per skateboard using an activity-based costing system would be closest to

A) $45.00.

B) $65.31.

C) $59.26.

D) $32.17.

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