Which of the following is an allocation base commonly used underthe traditional methods for allocation of overhead costs? Direct labor-hours All of the following are differences between activity-based costing(ABC) and traditional absorption costing except _ABC allocates all manufacturing costs to products Match the term & definition:-Activity-Cost objects-Product-level-Activity-based costing accumulates costs for each ____. -Activity-based costing estimates the costs of the resources consumed by __. -Advertising is an example of a_activity. Shipping orders to a grocery store would be considered a(n) _Batch-level activity Ordering materials, setting up machines, assembling products, andinspecting products are examples of _ Cost pools Which of the following costs would not be allocated using ABC?Direct labor First-stage allocation of overhead costs to each cost pool isaccomplished using all of the following except_ Grouping batch and unit level activities Annual Overhead Costs of Max CorporationProduction overhead $800,000Selling and administrative overhead 400,000 Activity Cost Pools of Max Corporation Assembling UnitsProcessing OrdersSupportin g Customer sOther Productionoverhead40%35%10% 15 % Selling and administrativeoverhead 5%50%25% 20 % What is the amount of production overhead allocated to the assembling unit cost pool? The amount of production overhead allocated to the assembling unit cost pool = $800,000 × 40% =$320,000. The Beckham Company has the following information about theiractivity cost pools:Activity CostPoolsTotal Overhead CostTotal Activity MachineSetups$ 125,0005,00 0 setups CustomerOrders$ 200,0001,25 0 orders ProductDesign$ 300,000 2,500product design hours The activity rate for machine setups is_ Activity rate for machine setups = $125,000 ÷ 5,000 setups =$25 per setup In the second-stage allocation of overhead costs, weuse _________blank to assign costs to cost objects. Activity rates Activity Cost PoolTotalTotalActiviActivity The total overhead cost assigned to Product A
Activity Cost Pool TotalCostTotalActivityActivity RateSpecialprocessing$ 150,000 10,000MHs$ 15 permachine-hourGeneralfactory$200,00020,000direct labou r- hours $ 10perdirectlabou r- hour Totaloverhead costs$ 370,0 00 Assuming Product A used 100 setups, no special processing, and 10,000 direct labor-hours, what is the total overhead cost assigned to Product A? is$110,000. This is calculated as $10,000 for machine setups (calculated as $100 per machine setup × 100 setups) + $0 special processing (calculated as $15 per machine-hours × 0 special processing) + $100,000 general factory (calculated as $10 per direct labor- hour × 10,000 direct labor-hours). Which of the following costs would not be allocated to products orcustomers?Customer service Other Machine setup Product design The Princeville Company placed five (5) orders for Product 12Bfrom Brookston Corporation. Brookston has the followinginformation about Product 12B: Activity CostPoolsActivity RateProduct 12BActivityMachineSetups$12.00per Machinehour40MHs CustomerOrders$ 10.00 per Order5Orders What is the overhead cost assigned to Princeville for its five (5) orders of Product 12B? Princeville would be assigned overhead cost of$530. This is calculated as $480 for machine setups (calculated as $12.00 per machine hour × 40 MHs) + $50 for customer order (calculated as $10.00 per order × 5 orders). Which of the following is not a management report that is normallyprepared with ABC data? Customer margins Product ASales $500,000Direct costs:Directmaterials$ 175,000 Direct labor$ 75,000 Activity Cost PoolsTotal Cost Machine-setups$ 20,000 Special processing150,000 General factory200,000 Total overhead costs $ 370,000 Overhead Cost for Product AProduct profit margin = Sales of $500,000 − Direct materials of $175,000 − Direct labor of $75,000 − Overhead costs of $110,000 = $140,000
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