62. QC Enterprises quality control report for August contains the following items.
What would be the total of the
nonconformance
costs on the August quality control report for QC
Enterprises?
63. QC Enterprises quality control report for August contains the following items.
What would be the total of the
prevention
costs on the August quality control report for QC
Enterprises?
64. QC Enterprises quality control report for August contains the following items.
What would be the total of the
appraisal
costs on the August quality control report for QC
Enterprises?
65. QC Enterprises quality control report for August contains the following items.
What would be the total of the
internal failure
costs on the August quality control report for QC
Enterprises?
66. QC Enterprises quality control report for August contains the following items.
What would be the total of the
external failure
costs on the August quality control report for QC
Enterprises?
67. Which of the following statements about activity-based costing (ABC) is not true? (CIA
adapted)
68. In an activity-based costing (ABC) system, cost reduction is accomplished by identifying
and eliminating: (CPA adapted)
69. Black Company’s cost management and product costing procedures follow activity-based
costing (ABC) principles. Activities have been identified and classified as being either value-added
or nonvalue-added for each product. Which of the following activities, used in Black’s production
process, is nonvalue-added? (CPA adapted)
70. Demers Products reports the following information about resources. At the beginning of
the year, Demers estimated it would spend $84,000 for setups and $41,000 for quality testing.
Compute unused resource capacity for setups for Demers Products.
71. Demers Products reports the following information about resources. At the beginning of
the year, Demers estimated it would spend $84,000 for setups and $41,000 for quality testing.
Compute unused resource capacity for quality testing for Demers Products.
72. Lemaire Products reports the following information about resources. At the beginning of
the year, Lemaire estimated it would spend $8,000 for energy and $12,000 for repairs.
Compute unused resource capacity for energy for Lemaire Products.
73. Lemaire Products reports the following information about resources. At the beginning of
the year, Lemaire estimated it would spend $8,000 for energy and $12,000 for repairs.
Compute unused resource capacity for repairs for Lemaire Products.
74. Rogers Company is preparing its annual profit plan. As part of its analysis of the cost of its
purchasing activity, management estimates that the $48,000 for purchasing support should be
assigned to the individual vendors from the information given as follows:
What is the amount of the purchasing costs that should be allocated to Vendor A, assuming
Rogers uses units purchased to compute activity-based costs?
75. Rogers Company is preparing its annual profit plan. As part of its analysis of the cost of its
purchasing activity, management estimates that the $48,000 for purchasing support should be
assigned to the individual vendors from the information given as follows:
What is the amount of the purchasing costs that should be allocated to Vendor B, assuming
Rogers uses units purchased to compute activity-based costs?
76. Rogers Company is preparing its annual profit plan. As part of its analysis of the cost of its
purchasing activity, management estimates that the $48,000 for purchasing support should be
assigned to the individual vendors from the information given as follows:
What is the amount of the purchasing costs that should be allocated to Vendor A, assuming
Rogers uses purchases orders to compute activity-based costs?
77. Rogers Company is preparing its annual profit plan. As part of its analysis of the cost of its
purchasing activity, management estimates that the $48,000 for purchasing support should be
assigned to the individual vendors from the information given as follows:
What is the amount of the purchasing costs that should be allocated to Vendor B, assuming
Rogers uses purchases orders to compute activity-based costs?
78. Rogers Company is preparing its annual profit plan. As part of its analysis of the cost of its
purchasing activity, management estimates that the $48,000 for purchasing support should be
assigned to the individual vendors from the information given as follows:
What is the amount of the purchasing costs that should be allocated to Vendor A, assuming
Rogers uses number of shipments received to compute activity-based costs?
79. Rogers Company is preparing its annual profit plan. As part of its analysis of the cost of its
purchasing activity, management estimates that the $48,000 for purchasing support should be
assigned to the individual vendors from the information given as follows:
What is the amount of the purchasing costs that should be allocated to Vendor B, assuming
Rogers uses number of shipments received to compute activity-based costs?
80. Folly Beach Industries decides to price delivery service according to the results of a recent
activity-based costing (ABC) study. The study indicates Folly Beach should charge $16 per order,
1% of the order’s value for general delivery costs, $2.50 per item, and $45 for delivery.
A year later, Folly Beach collected the following information for three of its customers:
What are the total delivery costs charged to Customer A during the year?
81. Folly Beach Industries decides to price delivery service according to the results of a recent
activity-based costing (ABC) study. The study indicates Folly Beach should charge $16 per order,
1% of the order’s value for general delivery costs, $2.50 per item, and $45 for delivery.
A year later, Folly Beach collected the following information for three of its customers:
What are the total delivery costs charged to Customer B during the year?