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21) Process costing is most likely used in which of the following industries? A) Chemicals B) Aircraft C) Construction D) Printing 22) Process costing is most likely used in which of the following industries? A) Pharmaceuticals B) Health Care C) Shipbuilding D) Construction 23) Process costing would likely be used by which of the following? A) Clear Channel Advertising B) PIP.
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11) Refined costing systems can be used to allocate any indirect costs to any cost objects. 12) Merchandising and service companies, as well as governmental agencies, can use refined cost allocation systems to provide their managers with better cost information. 13) A plantwide overhead rate is calculated by dividing the.
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148) Darlington & Myrtle, Attorneys at Law, provide a variety of legal services. The law firm uses an activity-based costing system and has developed the following activity pool cost rates: Cost and activity data related to two clients is as follows: Client 245 Client 367 Number of paralegal hours 38 79 Number of cases filed 4 1 Number of documents 18 40 Required: a..
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41) As compared to traditional volume-based costing using a single plantwide overhead rate, activity-based costing (ABC) is a more refined costing system that reduces cost distortion. 42) Traditional costing systems are generally more accurate than ABC costing. 43) It is easier to allocate indirect costs to the products that actually caused those.
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147) Duquesne Incorporated recently implemented an activity-based costing system. Total results from all products manufactured in the current year are: Activity cost poolTotal costTotal activity Assembly$7,5001,500machine-hours Packaging$3,150450number of orders Quality control inspections$900200number of inspections Duquesne manufactures sprinkler heads for commercial applications. Annual production and sales of one of its heads, is 2,300. The following relates.
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31) In process costing, manufacturing costs are usually combined into two categories: direct materials and conversion costs. 32) Conversion costs are generally added evenly throughout a process. 33) Equivalent units express the amount of work done during a period in terms of partially completed units. 34) Equivalent units should be computed separately for.
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81) Kramer Company manufactures coffee tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each coffee tables consists of 20 separate parts totaling $240 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.
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324) The predetermined indirect cost allocation rate is computed as A) total estimated indirect costs / total estimated amount of the allocation base. B) total amount of the allocation base / total estimated indirect costs. C) total estimated indirect costs + total estimated amount of the allocation base. D) total amount of the allocation.
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230) The cost of product liability claims is an example of a(n) ________ cost. A) appraisal B) internal failure C) external failure D) prevention 231) The lost profits from lost customers are an example of what type of cost? A) Prevention costs B) Internal failure costs C) External failure costs D) Appraisal costs 232) The costs of.
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121) Beartowne Enterprises uses an activity-based costing system to assign costs in its auto-parts division. Activity Est. Indirect Activity Costs Allocation base Cost allocation rate Materials $60,000   Material moves $5.00/move Assembling $175,000   Direct labor hours $5.00/dir. labor hour Packaging $70,000   # of finished units $2.50/finished unit The following units were produced in December with the following information: Part # # Produced Materials Costs # Moves Dir. Labor Hrs. Part 001 1,250 .
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134) At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: Beginning WIP direct materials $32,000 Beginning WIP conversion costs $20,250 Costs of materials added $384,100 Costs of conversion added $271,125 WIP beginning (50% for conversion) 19,200 units Units started 119,500 units Units completed and transferred out 115,700 units WIP ending (60%.
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38) The Braveheart Corporation uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: cutting and painting. The Cutting Department uses a departmental overhead rate of $12 per machine hour, while the Painting Department uses a departmental overhead rate of $17 per direct labor.
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190) Which of the following is true about lean thinking? A) Customer orders drive the production process. B) Inventory levels are maintained at high levels. C) Raw materials are purchased in large quantities. D) Finished goods are produced ahead of customers' orders to protect against running out of finished goods inventory. 191) Which of.
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84) In process costing, units that are partially completed are accounted for the same as units in finished goods inventory. 85) The cost per equivalent unit for direct materials will always be equal to the cost per equivalent unit for conversion costs. 86) The number of equivalent units is computed before.
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40) Bobke Technologies manufactures three types of computers for a well known national brand. The three types are: laptops, desktops, and tablets. Currently, Bobke uses a single plant-wide overhead rate to allocate its $1,667,250 of annual manufacturing overhead. Of this amount, $562,000 is associated with laptops, $492,000 is associated with.
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61) If conversion costs are added evenly throughout the production process, and the units have made it 50% of the way through the production process, then the percentage completion for conversion costs is A) 0%. B) 50%. C) 100%. D) none of the above. 62) A company uses a process system. The number of equivalent.
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149) Columbia Corporation manufactures two products: Tricycles and Wagons. The annual production and sales of Tricycles is 2,200 units, while 1,750 units of Wagons are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Tricycles require 2 direct labor hours per unit,.
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91) Telecom uses activity-based costing to allocate all manufacturing conversion costs. Telecom produces cellular telephones; each phone has $40.00 of direct materials, includes 30 parts and requires 3 hours of machine time. Additional information follows: Activity Allocation Base Cost Allocation Rate Materials handling Number of parts $0.50 per part Machining Machine hours $14.00 per machine hour Assembling Number of parts $1.00 per.
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83) The following information is provided by Mel Company: WIP inventory, January 1 0 units Units started 23,000 units Units completed and transferred out 18,000 units WIP inventory, December 31 5,000 units Direct materials $22,400 Direct labor $16,500 Manufacturing overhead $27,200 The units in ending WIP inventory were 90% complete for materials and 25% complete for conversion costs. Required: a.  What are.
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21) If a company uses departmental overhead allocation rates, then the amount of manufacturing overhead allocated to the job is equal to the plantwide overhead rate multiplied by the actual use of the cost allocation base. 22) The allocation base selected for each department should be the cost driver of.
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160) The movement of parts is considered a non-value-added activity. 161) The storage of raw materials is considered a value-added activity. 162) Inspection is considered a non-value-added activity. 163) Non-value-added activities can be described as activities for which the customer is willing to pay. 164) Waste activities is another name for non-value-added activities. 165).
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145) Burning River Corporation, a manufacturer of a variety of products, uses an activity-based costing system. Information from its system for the year for all products follows: Burning River Corporation makes 750 of its product X14 a year, which requires a total of 55 machine hours, 20 inspection hours, and 18.
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1) Process costing is typically used for businesses that make unique goods in relatively small amounts. 2) Cost for direct materials, direct labor and manufacturing overhead are assigned to each job. 3) A separate work in process inventory account is maintained for each process. 4) Unique or custom-made goods use a process costing.
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39) High Rise Display Company manufactures display cases to be sold to retail stores. The cases come in three sizes: Large, Medium, and Small. Currently, High Rise Display Company uses a single plant-wide overhead rate to allocate its $3,357,800 of annual manufacturing overhead. Of this amount, $820,000 is associated with.
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71) All of the following describe an ABC system except A) ABC systems may only be used by service companies. B) ABC systems can create more accurate product costs. C) ABC systems are more complex and costly than traditional costing systems. D) ABC systems are used in both manufacturing and nonmanufacturing companies. 72) Which of.
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81) The following information is provided by Bynes Company: WIP inventory, January 1 0 units Units started 23,000 units Units completed and transferred out 20,000 units WIP inventory, December 31 3,000 units Direct materials $22,400 Direct labor $16,500 Manufacturing overhead $27,200 The units in ending WIP inventory were 85% complete for materials and 25% complete for conversion costs. Required: a.What are the.
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240) Which term below best describes the quality cost category for "cost to re-inspect reworked blenders"? A) Prevention costs B) Internal failure costs C) Appraisal costs D) External failure costs 241) Which term below best describes the quality cost category for "cost of warranty repairs on juicers"? A) Prevention costs B) Appraisal costs C) External failure costs D).
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51) Machine set-up would be considered a batch-level cost. 52) Product-level activities and costs are incurred for a particular product, regardless of the number of units or batches of the product produced. 53) The cost to research and develop, design and market new models would be considered a product-level cost..
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101) Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: Activities Indirect Activity Costs Allocation Base Account inquiry (hours) $86,400 2,700 Account billing (lines) $56,000 32,000 Account verification (accounts) $38,250 25,500 Correspondence (letters) $80,000 10,000 Potter & Weasley uses activity based costing. The above activities are used by Departments P and Q as follows: Department P Department Q Account inquiry (hours) 400 800 Account billing (lines) 10,000 4,000 Account verification.
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31) James Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $35 per machine hour, while the Sanding Department uses a departmental overhead rate of $20 per direct labor hour..
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131) Carrol Company, which uses an activity-based costing system, produces travel trailers and boat trailers. The company allocates batch setup costs to the two products using the following basic data: Travel trailers Boat trailers Budgeted units to be produced 2,250 2,900 Budgeted number of setups 340 560 Budgeted number of direct labor hours per unit 40.
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41) In a mass-production environment, direct labor is usually a relatively small component of the total manufacturing costs. 42) Companies that use automated production processes often condense the three manufacturing costs into two categories: Direct materials and Conversion costs. 43) Companies that use automated production processes often condense the three manufacturing costs.
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111) Hummingbird Manufacturing manufactures small parts and uses an activity-based costing system. Activity Est. Indirect Activity Costs Allocation base Cost allocation rate Materials $75,000   Material moves $3.00/move Assembling $255,000   Direct labor hours $10.00/dir. labor hour Packaging $90,000   # of finished units $1.00/finished unit The following parts were produced in October with the following information: Part # Produced Materials Costs # Moves Dir. Labor Hrs. A 2,250 $3,000 900 250 B 4,000 $6,500 1,700 325 C 4,750 $9,000.
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220) All of the following statements regarding total quality management are true except A) TQM emphasizes educating, training, and cross training employees to increase and broaden their skills. B) TQM is a formal effort to improve quality throughout an organization's value chain. C) TQM extends horizontally across business functions in the value chain. D).
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146) Bohemian Manufacturing manufactures several different products and uses an activity-based costing system. Information from its system for the year for all products follows: The annual production and sales of one of its products, the Sizzler, are 1,500 units. The following data relate to the production and sales of Sizzlers in.
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150) ABC tends to increase the unit cost of low-volume products and decrease the unit cost of high-volume products. 151) Traditional cost systems with a single-allocation base tend to overcost high-volume products and undercost low-volume products as compared to activity-based costing systems. 152) There will be little benefit to using an activity-based.
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200) External failure costs occur when poor-quality goods or services are not detected until after delivery to customers. 201) Product testing is an appraisal cost. 202) An example of an appraisal cost is the cost of automating the production process. 203) The cost of training employees would be classified as a prevention.
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180) Lean companies typically arrange production activities into self-contained cells. 181) Waste can be reduced by implementing shorter setup times. 182) Lean companies typically cross-train employees to perform more than one task. 183) One key element of lean production is to produce large batches. 184) A lean company typically strives to lengthen.
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124) At Sunrise Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: WIP beginning (50% for conversion) 19,200 units Units started 120,500 units Units completed and transferred out 116,700 units WIP ending (60% for conversion) 23,000 units Beginning WIP direct materials $35,000 Beginning WIP conversion costs $22,500 Costs of materials added $384,100 Costs.
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1) When overhead is allocated to every product using the same manufacturing overhead rate, this rate is called the departmental overhead rate. 2) With increased competition, managers need more accurate estimates of product costs in order to set prices and to identify the most profitable products. 3) The plantwide overhead cost.
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