acg 2
Damon purchased a $140 ticket to a December game of the Jacksonville Jaguars in July. Parking for the game was expected to cost approximately $21, and Damon would probably spend another $11 for food. Is it now December, the Jaguars have had a miserable season, and the weather for the game looks terrible. Damon is thinking of skipping the game and going out to eat with friends. Damon expects the dinner to cost $100. The amount of sunk cost that should influence Damon's decision to hang out with f
$0
The controller for Knights Co. estimates that the company's fixed overhead is $160,000 per year. They have also determined that the variable overhead is approximately $0.25 per unit. Since the company has s single product, overhead is applied on the basis of output units. What is the predetermined overhead per unit if the estimated output is 80,000 units?
$2.25
ABC Co. makes batches of custom novelty items or other companies to give away at career fairs. Job A11 consists of 2,000 pens that light up inside the pen base when used. In addition, a specialized logo is printed on the pens. Direct materials for these pens amount to $1,400; direct labor is $2,200; and manufacturing overhead is $1,800. Based on this information, what is the cost per pen for Job A11?
$2.70
ABC Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using machine hours. Enter your response with two decimals (i.e., 2.46) and without a $ sign or comma.
.10
The controller for Knights Co. estimates that the company's fixed overhead is $160,000 per year. They have also determined that the variable overhead is approximately $0.25 per unit. Since the company has s single product, overhead is applied on the basis of output units. What is the predetermined overhead per unit if the estimated output is 80,000 units?
2.25
ABC Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using machine hours. Enter your response with two decimals (i.e., 2.46) and without a $ sign or com
20.00
The Shoe Department at the Knights Department Store is being considered for closure. The following information related to shoe department activity: Sales revenue$350,000 Variable costs: Cost of goods sold 280,000 Sales commissions 30,000 Fixed operating costs 90,000 If 70% of the fixed operating costs are avoidable, should the shoe department be closed?
23,000
Seashore Furniture has selected direct labor hours as its allocation base. The budgeted manufacturing overhead costs are $305,999 for products that are expected to use a total of 5,755 direct labor hours. What is the predetermined overhead rate?
53
ABC Co., currently makes 10,000 units of a product that has created a number of manufacturing problems. ABC's costs are as follows: Manufacturing Costs: Variable$540,000 Fixed 167,496Allocated corporate administrative costs 60,000 If ABC were to discontinue production, fixed manufacturing costs would be reduced by 70%. The relevant cost of deciding whether the division should purchase the product from an outside supplier is:
657,247
ABC Co., currently makes 10,000 units of a product that has created a number of manufacturing problems. ABC's costs are as follows: Manufacturing Costs: Variable$540,000 Fixed 180,000Allocated corporate administrative costs 60,000 If ABC were to discontinue production, fixed manufacturing costs would be reduced by 73%. The relevant cost of deciding whether the division should purchase the product from an outside supplier is:
671,400
Which statement is correct?
Activity-based cost systems are more accurate than traditional cost systems.
Which statement is correct?
Activity-based cost systems provide the same data as traditional cost systems.
Which of the following product situations is better suited to job order costing than to process costing?
Each product batch is exactly the same as the prior batch.
Which of the following is most likely to be a cost driver for a packaging and shipping activity?
Number of order
Which of the following is most likely to be a cost driver for a packaging and shipping activity?
Number of orders
ABC Co.,is analyzing whether to expand operations by adding a new product line. Which of the following choices correctly identifies the costs that should be considered in this decision?
Opportunity cost only
Consider the following statements regarding traditional costing systems. Which of the statements is the most accurate?
Overhead costs are applied to products on the basis of volume-related measures and traditional costing systems tend to distort unit manufacturing costs when numerous goods are made that have widely varying production requirements
Which of the following cost drivers would best be associated with the activity of a physician time in a medical clinic?
Physician minutes with a patient
ABC Production manufactures products X and Y and has been applying overhead on the basis of direct labor hours. Product X is a high-volume product and relatively simplistic in nature. Product Y is a low-volume product that requires a variety of complex manufacturing procedures. What would an activity-based costing system likely disclose about products X and Y?
Product X was overcosted and product Y was undercosted
ABC Production manufactures products X and Y and has been applying overhead on the basis of direct labor hours. Product X is a high-volume product and relatively simplistic in nature. Product Y is a low-volume product that requires a variety of complex manufacturing procedures. What would an activity-based costing system likely disclose about products X and Y?
Product X was overcosted and product Y was undercosted
Which of the following would activity-based costing most likely lead to?
Raising the sale price of low-colume products
Which of the following product situations is better suited to job order costing than to process costing?
The costs are easily traced to a specific product
Which of the following product situations is better suited to job order costing than to process costing?
The costs are easily traced to a specific product.
Which of the following is a reason a company would implement activity-based costing?
They want to improve the data on which decisions are made.
Which of the following is a reason a company would implement activity-based costing?
Which of the following is a reason a company would implement activity-based costing?
Which statement is correct?
Which statement is correct?
job order costing system is most likely used by which of the following?
an accountant
predetermined overhead rate
computes the overhead applied to each job
A cost not relevant to deciding whether to purchase a new machine is
cost of old machine
Activity-based costing systems:
frequently increase the overhead allocation to at least one product while decreasing the overhead allocation to at least one other product
Manufacturing overhead:
is a pool of indirect production costs that must somehow be attached to each unit manufactured
Activity-based costing systems:
often reveal products that were under- or over-costed by traditional costing systems
Activity-based costing systems:
often reveal products that were under- or overcosted by traditional costing systems.
factors in a decision problem that cannot be expressed in numerical terms are:
qualitative
Factors in a decision problem that cannot be expressed in numerical terms are:
qualitative in nature
Which of the following is not a qualitative decision that should be considered in an outsourcing decision?
relevant cost
Which of the following is not a qualitative decision that should be considered in an outsourcing decision?
relevant costs
The cost of inventory owned by a company is considered a:
sunk cost
Which of the following types of companies would most likely use process costing?
textile
job order costing
the cost accounting system used by law firms
process costing
the cost accounting system used by pet food manufacturers
Which if the following costs are relevant to a decision making situation?
the cost of special electrical wiring in an equipment acquisition decision
Which of the following product situations is better suited to job order costing than to process costing?
the costs are easily traced to a specific product.
overapplied overhead
the result when the actual overhead is less than the amount assigned to each specific job
underapplied overhead
the result when the actual overhead is more than the amount assigned to each specific job
In activity-based costing system, direct materials used would typically be classified as a:
unit-level cost
