Acct. 202 - Chapter 17
Addison Company...
$1,075,000
Clemson Co.
$168,334
Wallace Computer Company
$180,000, $135,000, $405,000
Berg Company... Using ABC
$218,000
Sitwell Corporation manufactures titanium and aluminum tennis racquets...
$22,500
Wilder Company
$30,600
Teller Inc...
$36,000, $54,000, $90,000
One of Hartman Company's activity cost pools is inspecting, with estimated overhead of $140,000...
$49,000
Daffodil Company produces two products, Flower and Planter...
$50.00
Berg Company incurs $320,000... If machining hours are used as a base...
$64,000
For its inspecting cost pool, Davidson, Inc....
$75 per inspection
An example of an activity cost pool is
Setting up machines
Which of the following is a limitation of activity-based costing
Some arbitrary allocations continue
To use activity-based costing, it is necessary to know the
all of these
The presence of any of the following factors would suggest a switch to ABC except when
Production managers are using data provided by the existing system
Which would be an appropriate cost driver for the ordering and receiving activity cost pool?
Purchase orders
Sanborn Industries has the following overhead costs...
240 per order
Johnstone Company...
3,328,000
A well-designed activity-based costing system starts with
Analyzing the activities performed to manufacture a product
In Japan,
Companies prefer volume measures such as direct labor hours to assign OC
An example of a cost which would not be assigned to an overhead cost pool is
Freight-out
The first step in activity-based costing is to
Identify and classify the activities involved in the manufacturing of specific products...
Which of the following is not a benefit of activity-based costing?
Less costly to use
Each of the following is a limitation of activity-based costing except that
More cost pools are used
Ordering materials, setting up machines, assembling products, and inspecting products are examples of
Overhead cost pools
