x
Info
x
Warning
x
Danger
 / 
 / 
 / 
48) Companies that use ABC allocate all costs including direct materials

Question : 48) Companies that use ABC allocate all costs including direct materials : 2147426

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

48) Companies that use ABC allocate all costs including direct materials, direct labor and manufacturing overhead to the product based on an activity cost allocation rate.

54) Batch-level activities and costs are incurred again each time a batch is produced.

55) Machine set-up would be considered a batch-level cost.

56) Product-level activities and costs are incurred for a particular product, regardless of the number of units or batches of the product produced.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

84) O&G Company manufactures console tables and uses an activity-based costing system. Each console table consists of 30 separate parts totaling $250 in direct materials, and requires 5.0 hours of machine time to produce. Additional information follows:

Activity

Allocation Base

Cost Allocation Rate

Materials handling

Number of parts

$2.00 per part

Machining

Machine hours

$4.70 per machine hour

Assembling

Number of parts

$3.00 per part

Packaging

Number of finished units

$7.00 per finished unit

 

What is the cost of materials handling per console table?

A) $60

B) $90

C) $12

D) $14

85) O&G Company manufactures console tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each console table consists of 30 separate parts totaling $210 in direct materials and requires 3.0 hours of machine time to produce. Additional information follows:

Activity

Allocation Base

Cost Allocation Rate

Materials handling

Number of parts

$3.00 per part

Machining

Machine hours

$5.40 per machine hour

Assembling

Number of parts

$2.00 per part

Packaging

Number of finished units

$7.00 per finished unit

 

What is the cost of machining per console table?

A) $162.00

B) $21.00

C) $16.20

D) $60.00

86) O&G Company manufactures console tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each console tables consists of 40 separate parts totaling $260 in direct materials and requires 4.0 hours of machine time to produce. Additional information follows:

Activity

Allocation Base

Cost Allocation Rate

Materials handling

Number of parts

$3.00 per part

Machining

Machine hours

$5.10 per machine hour

Assembling

Number of parts

$5.00 per part

Packaging

Number of finished units

$3.00 per finished unit

 

What is the cost of assembling per console table?

A) $200

B) $11

C) $120

D) $32

87) O&G Company manufactures console tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each console table consists of 40 separate parts totaling $250 in direct materials and requires 5.0 hours of machine time to produce. Additional information follows:

Activity

Allocation Base

Cost Allocation Rate

Materials handling

Number of parts

$3.00 per part

Machining

Machine hours

$4.80 per machine hour

Assembling

Number of parts

$1.00 per part

Packaging

Number of finished units

$4.00 per finished unit

 

What is the number of finished console tables?

A) 200

B) 467

C) 25

D) Cannot be determined from the information given

88) O&G Company manufactures console tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each console table consists of 20 separate parts totaling $210 in direct materials and requires 7.0 hours of machine time to produce. The company incurs no direct labor costs. Additional information follows:

Activity

Allocation Base

Cost Allocation Rate

Materials handling

Number of parts

$3.00 per part

Machining

Machine hours

$4.80 per machine hour

Assembling

Number of parts

$2.00 per part

Packaging

Number of finished units

$5.00 per finished unit

 

What is the total manufacturing cost per console table?

A) $343.60

B) $348.60

C) $96.00

D) $138.60

89) The Press Go Corporation manufactures and assembles remote control toys. The company uses an activity-based costing system to allocate all manufacturing conversion costs. Each toy consists of 10 separate parts totaling $145 in direct materials and requires 2.0 hours of machine time to produce. Additional information follows:

Activity

Allocation Base

Cost Allocation Rate

Materials handling

Number of parts

$4.75 per part

Machining

Machine hours

$6.00 per machine hour

Assembling

Number of parts

$5.50 per part

Packaging

Number of finished units

$2.75 per finished unit

 

What is the cost of materials handling per toy?

A) $47.50

B) $5.50

C) $12.00

D) $55.00

Solution
5 (1 Ratings )

Solved
Accounting 7 Months Ago 120 Views
This Question has Been Answered!

Related Answers
Unlimited Access Free
Explore More than 2 Million+
  • Textbook Solutions
  • Flashcards
  • Homework Answers
  • Documents
Signup for Instant Access!
Ask an Expert
Our Experts can answer your tough homework and study questions
150417 Accounting Questions Answered!
Post a Question