Info
Warning
Danger

Study Resources (Accounting)

21) The allocation base selected for each department should be the cost driver of the costs in the departmental overhead pool. 22) Direct labor hours would be the most appropriate cost allocation base for a Machining Department that uses machine robotics extensively. 23) Plant-wide overhead rates typically do a better job of.
3 Views
View Answer
30) Baoding mass-produces a single product using three sequential processing departments: Machining, Assembly, and Packaging. The following transactions occurred during February: 1. Direct materials used in the Packaging Department $42,000 2. Costs assigned to units completed and transferred out of Machining 250,000 3. Direct labour incurred in the Machining Department 15,000 4. Beginning balance:.
7 Views
View Answer
89) Clucker Chicken produces several styles of precooked and package chicken wings (drums, tips, buffalo and coated with a variety of spices and sauces). Each style of wing requires different preparation time, different cooking and draining times and different packaging. Therefore the company management has decided to try ABC costing to better capture.
13 Views
View Answer
31) In a process system, direct labor and manufacturing overhead are normally: A) incurred at the end of the process. B) incurred in full at the beginning of the process. C) incurred evenly throughout the process. D) not recorded. 32) A measure of the amount of work done, expressed in complete units of output is: A).
12 Views
View Answer
1) With increased competition, managers need more accurate estimates of product costs in order to set prices and to identify the most profitable products. 2) The plant-wide overhead cost allocation rate is computed by dividing the estimated total manufacturing overhead costs by the estimated total quantity of the cost allocation base. 3).
11 Views
View Answer
39) Sector's Machine Works manufactures custom equipment. Sector's Machine Works currently uses a plant-wide overhead rate, based on direct labour hours, to allocate its $2,000,000 of manufacturing overhead to individual jobs. Sector's plant completed Jobs 550 and 555 on May 15. Both jobs incurred a total of 7 DL hours throughout.
5 Views
View Answer
21) 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 50%. 22) The weighted average and FIFO methods differ only in how they treat beginning inventory. 23) The FIFO.
11 Views
View Answer
28) Sweet Stuff Bakery mass-produces cakes using three sequential processing departments: Mixing, Baking, and Packaging. The following transactions occurred during February: 1. Direct materials used in the Packaging Department $45,000 2. Costs assigned to units completed and transferred out of Mixing 330,000 3. Direct labour incurred in the Mixing Department 18,000 4. Beginning balance: Work in.
11 Views
View Answer
46) General Products Company manufactures toaster ovens and uses an activity-based costing system. The following information is provided for the month of May: Activity Estimated Indirect Activity Costs Allocation Base Estimated Quantity of Allocation Base Materials handling $5,400 Number of parts 3,000 parts Assembling $9,600 Number of parts 3,000 parts Packaging $2,500 Number of toaster ovens 1,000 toaster ovens Each toaster.
6 Views
View Answer
42) Murphy's Machine Works manufactures custom equipment. Murphy's Machine Works currently uses a plant-wide overhead rate, based on direct labour hours, to allocate its $2,500,000 of manufacturing overhead to individual jobs. However, Sean Murphy, owner and CEO, is considering refining the company's costing system by using departmental overhead rates. Currently,.
4 Views
View Answer
22) Tellit.ca is an internet advertising agency. The firm uses a job cost system in which each client is a different "job". Tellit.ca traces direct labour, software licensing costs, and travel costs directly to each client (job). The company allocates the indirect costs to jobs based on a predetermined indirect.
7 Views
View Answer
20) Kiji.ca is an internet advertising agency. The firm uses a job cost system in which each client is a different "job". Kiji.ca traces direct labour, software licensing costs, and travel costs directly to each client (job). The company allocates the indirect costs to jobs based on a predetermined indirect cost.
3 Views
View Answer
1) Lean production systems keep large inventories. 2) Lean production may be regarded as a general philosophy of manufacturing without waste, rather than a particular type of manufacturing process. 3) Lean production systems typically carry large inventories. 4) Lean production systems typically arrange production activities in self-contained cells. 5) Lean production systems typically strive.
3 Views
View Answer
36) Humber Products manufactures its products in two separate departments: milling and assembly. Total manufacturing overhead costs for the year are budgeted at $2 million. Of this amount Milling Department incurs $1,200,000 (primarily for machine operation and depreciation) while the Assembly Department incurs $800,000. Humber Products estimates that it will.
4 Views
View Answer
88) Heese Corporation manufactures two products–Tricycles and Wagons. The annual production and sales of Tricycles is 2,000 units, while 1,500 units of Wagons are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Tricycles require 1.5 direct labor hours per unit, while.
5 Views
View Answer
1) Conversion costs are generally added evenly throughout a process. 2) Equivalent units are the sum of direct materials and direct labor. 3) Equivalent units should be computed separately for direct materials and conversion costs. 4) The number of partially completed units multiplied by the percentage of process started equals the number of.
6 Views
View Answer
76) Louis Corporation, 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 2,000 3,000 Budgeted number of setups 380 420 Budgeted number of direct labor hours per unit 20.
19 Views
View Answer
86) Rhapsody Corporation 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 1,000 units. The following data relate to the production and sales of Sizzlers.
4 Views
View Answer
21) Which of the following is one of the four cost categories typically found on a cost of quality report? A) Development costs B) Inventory failure costs C) Marketing costs D) Prevention costs 22) Which of the following refers to costs incurred in detecting poor quality goods or services? A) Appraisal costs B) External failure costs C) Internal.
4 Views
View Answer
1) Appraisal costs are incurred to detect poor-quality goods or services. 2) Internal failure costs occur when the company detects and corrects poor-quality goods or services after delivery to customers. 3) Inspection of incoming raw materials and production loss caused by downtime are examples of prevention costs. 4) Internal failure costs occur when.
3 Views
View Answer
29) Autodig mass-produces a single product using three sequential processing departments: Machining, Assembly, and Packaging. The following transactions occurred during February: 1. Direct materials used in the Packaging Department $28,000 2. Costs assigned to units completed and transferred out of Machining 165,000 3. Direct labour incurred in the Machining Department 9,000 4. Beginning balance:.
7 Views
View Answer
37) Credit Valley Products manufactures its products in two separate departments: milling and assembly. Total manufacturing overhead costs for the year are budgeted at $1,600,000. Of this amount Milling Department incurs $960,000 (primarily for machine operation and depreciation) while the Assembly Department incurs $640,000. Credit Valley Products estimates that it.
4 Views
View Answer
21) Direct labor costs plus manufacturing overhead costs equal: A) prime costs. B) operating costs. C) equivalent costs. D) conversion costs. 22) The costing system used by a company producing custom window treatments would be: A) job costing. B) process costing. C) equivalent units costing. D) conversion cost costing. 23) The costing system used by a company making computer chips.
5 Views
View Answer
11) Merchandising and service companies, as well as governmental agencies, can use refined cost allocation systems to provide their managers with better cost information. 12) A plant-wide overhead rate is calculated by dividing the estimated total manufacturing overhead costs for the year by the estimated total amount of the allocation base.
8 Views
View Answer
11) Which of the following pertains to a lean production system? A) It will have like machines grouped together. B) It will produce goods in smaller batches than a traditional production system. C) It will require higher inventory levels than a traditional production system. D) It will require longer set-up times than a traditional.
4 Views
View Answer
1) Cost for direct materials, direct labor and manufacturing overhead are assigned to each job. 2) A separate work in process inventory account is maintained for each process. 3) Unique or custom-made goods use a job costing system. 4) Both process and job costing assign costs to units as they proceed through the.
17 Views
View Answer
26) Which of the following is NOT considered to be part of the cost hierarchy often used to implement ABC? A) Unit-level activity B) Batch-level activity C) Product-level activity D) Production-level activity 27) Which of the following describes how, in ABC, the activity allocation rate is computed? A) The total estimated activity cost pool is divided.
5 Views
View Answer
6) The four categories of activity costs in cost hierarchy are determined by the underlying factor that drives its costs. 7) Unit-level activities and costs are incurred once for every batch. 8) The cost of inspecting and packaging EACH unit the company produces would be considered a unit-level activity cost. 9) Batch-level activities.
7 Views
View Answer
87) Moylan & Bolognese, 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 352 Client 487 Number of paralegal hours 42 72 Number of cases filed 3 2 Number of.
7 Views
View Answer
35) Clearview Display Company manufactures display cases to be sold to retail stores. The cases come in three sizes–Large, Medium, and Small. Currently, Clearview Display Company uses a single plant-wide overhead rate to allocate its $7,141,100 of annual manufacturing overhead. Of this amount, $1,875,000 is associated with the Large Case.
3 Views
View Answer
31) The cost of training production personnel on their job tasks is an example of a(n): A) internal failure cost. B) external failure cost. C) prevention cost. D) appraisal cost. 32) Production loss caused by downtime is an example of what type of cost? A) External failure cost B) Internal failure cost C) Prevention cost D) Appraisal cost 33) Costs.
3 Views
View Answer
11) Companies that use automated production processes often condense the three manufacturing costs into two categories–Direct materials and Conversion costs. 12) Companies that use automated production processes often condense the three manufacturing costs into two categories–Direct labor and Conversion costs. 13) Direct materials are usually added evenly throughout the production process. 14).
10 Views
View Answer
45) The CEO of Prairie Machine Parts (OMP) is concerned with the quality of its products and the amount of resources currently spent on customer returns. The CEO would like to analyze the costs incurred in conjunction with the quality of the product. The following information was collected from various departments within the.
4 Views
View Answer
44) The CEO of Oakville Machine Parts (OMP) is concerned with the quality of its products and the amount of resources currently spent on customer returns. The CEO would like to analyze the costs incurred in conjunction with the quality of the product. The following information was collected from various departments within the.
4 Views
View Answer
98) Martin Corporation manufactures two products–Plows and Harrows. The annual production and sales of Plows is 1,000 units, while 2,000 units of Harrows are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Plows require 5.0 direct labor hours per unit, while.
6 Views
View Answer
11) Which of the following cost items should be classified as an external failure cost on a cost of quality report? A) Net cost of scrap B) Customer returns of defective products C) Technical support provided to suppliers D) Supplies used in the quality inspection program 12) If a company were to increase its appraisal.
6 Views
View Answer
66) Sparrow Manufacturing manufactures small parts and uses an activity-based costing system. Activity Est. Indirect Activity Costs Allocation base Cost allocation rate Materials $70,000 Material moves $2.00/move Assembling $240,000 Direct labor hours $8.00/dir. labor hour Packaging $80,000 # of finished units $0.80/finished unit The following parts were produced in October with the following information: Part # Produced Materials Costs # Moves Dir. Labor Hrs. A 2,500 .
7 Views
View Answer
27) Sweet Stuff Bakery mass-produces cakes using three sequential processing departments: Mixing, Baking, and Packaging. The following transactions occurred during February: 1. Direct materials used in the Packaging Department $15,000 2. Costs assigned to units completed and transferred out of Mixing 110,000 3. Direct labour incurred in the Mixing Department 6,000 4. Beginning balance: Work in Process.
6 Views
View Answer
38) Speedy Machine Products manufactures its products in two separate departments, Machining and Painting. Total manufacturing overhead costs for the year are budgeted at $2,500,000. Of this amount the Machining Department incurs $1,500,000 (primarily for machine operation and depreciation) while the Painting Department incurs $1,000,000. Speedy Machine Products estimates that it.
4 Views
View Answer
9) Value-engineering is accomplished by eliminating, reducing, or simplifying all non-value added activities, and examining whether value-added activities could be improved. 10) The movement of parts is considered a value-added activity 11) The storage of raw materials is considered a non-value-added activity 12) Inspection is considered a value-added activity 13) Value-added activities can be.
4 Views
View Answer
56) Hinckley & Granger Company had the following activities, estimated indirect activity costs, and allocation bases: Activities Indirect Activity Costs Allocation Base Account inquiry (hours) $75,000 2,500 Account billing (lines) $45,000 30,000 Account verification (accounts) $18,000 24,000 Correspondence (letters) $40,000 4,000 Hinckley & Granger uses activity-based costing. The above activities are.
17 Views
View Answer
20) Characterize each of the following characteristics as being either more representative of traditional manufacturing or lean production by placing a "T" for traditional manufacturing of "L" for lean manufacturing in the blank. A. Set-up times are shorter. ________ B.  High quality is stressed in every aspect of production. ________ C. Products are.
3 Views
View Answer
36) Which of the following statements is TRUE regarding activity-based costing systems? A) ABC systems accumulate overhead costs by departments. B) ABC costing systems are less complex and, therefore, less costly than traditional systems. C) ABC costing systems can be used in manufacturing firms only. D) ABC costing systems have separate indirect cost allocation.
4 Views
View Answer