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40. Which of the following is not normally associated with activity-based costing?
41. Which of the following is not considered a benefit of activity-based costing?
42. Which of the following would be the most appropriate cost driver to allocate factory
electricity costs to products?
43. Which of the following activity cost pools would most likely be allocated based on the
number of production runs?
44. Which of the following is most likely to be the cost driver for the packaging and shipping
activity?
45. Activity-based costing systems:
46. Which of the following is not true regarding activity-based costing (ABC) systems?
47. All of the following are low-value-added activities except:
48. Which of the following cost pools are used to classify costs under activity-based costing?
Unit Batch Product Facility
A) Yes Yes Yes No
B) Yes Yes Yes Yes
C) No Yes Yes No
D) Yes No Yes Yes
E) Yes Yes No No
49. Purchase order, set-up, and inspection costs are examples of:
50. Which of the following would not be considered a facility-level activity?
51. Costs at the unit-level of activity should be allocated to products using cost drivers that
are:
52. If a costing system uses a single base to allocate overhead costs that are results of
several production activities:
53. Procurement costs such as costs of placing orders for materials and paying suppliers are
usually classified as:
54. The cost of sales visits is a:
55. Freight charges based on number of units shipped to customers is a:
56. Processing sales returns and allowances is usually classified as a:
57. Invoicing cost is an example of a:
58. The cost to process monthly statements is an example of a:
59. The costs of operating a regional warehouse is an example of a:
60. General corporate sales expenditures are:
61. The general sales manager's salary is an example of a:
62. Which of the following is a description of categorizing related customer costs into cost
pools on the basis of cost drivers?
63. Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and
had the following manufacturing overhead:
Overhead Cost Pool Budgeted Overhead Cost Budgeted Level for Cost
Driver Overhead Cost Driver
Materials handling $160,000 3,200 pounds Weight of materials
Machine setup 13,200 390 setups Number of setups
Machine repair 1,380 30,000 machine hours Machine hours
Inspections 10,560 160 inspections Number of inspections
Requirements for Job #971 which manufactured 4 units of product:
Direct labor 20 hours
Direct materials 130 pounds
Machine setup 30 setups
Machine hours 15,000 machine hours
Inspections 15 inspections
If Wings uses a volume-based overhead rate based on direct labor hours, the manufacturing
overhead for Job #971 is:
64. Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and
had the following manufacturing overhead:
Overhead Cost Pool Budgeted Overhead Cost Budgeted Level for Cost
Driver Overhead Cost Driver
Materials handling $160,000 3,200 pounds Weight of materials
Machine setup 13,200 390 setups Number of setups
Machine repair 1,380 30,000 machine hours Machine hours
Inspections 10,560 160 inspections Number of inspections
Requirements for Job #971 which manufactured 4 units of product:
Direct labor 20 hours
Direct materials 130 pounds
Machine setup 30 setups
Machine hours 15,000 machine hours
Inspections 15 inspections
Using ABC, the materials handling overhead cost assigned to Job #971 is:
65. Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and
had the following manufacturing overhead:
Overhead Cost Pool Budgeted Overhead Cost Budgeted Level for Cost
Driver Overhead Cost Driver
Materials handling $160,000 3,200 pounds Weight of materials
Machine setup 13,200 390 setups Number of setups
Machine repair 1,380 30,000 machine hours Machine hours
Inspections 10,560 160 inspections Number of inspections
Requirements for Job #971 which manufactured 4 units of product:
Direct labor 20 hours
Direct materials 130 pounds
Machine setup 30 setups
Machine hours 15,000 machine hours
Inspections 15 inspections
Using ABC, overhead cost assigned to Job #971 for machine setup is:
66. Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and
had the following manufacturing overhead:
Overhead Cost Pool Budgeted Overhead Cost Budgeted Level for Cost
Driver Overhead Cost Driver
Materials handling $160,000 3,200 pounds Weight of materials
Machine setup 13,200 390 setups Number of setups
Machine repair 1,380 30,000 machine hours Machine hours
Inspections 10,560 160 inspections Number of inspections
Requirements for Job #971 which manufactured 4 units of product:
Direct labor 20 hours
Direct materials 130 pounds
Machine setup 30 setups
Machine hours 15,000 machine hours
Inspections 15 inspections
Using ABC, overhead cost assigned to Job #971 for machine repair is:
67. Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and
had the following manufacturing overhead:
Overhead Cost Pool Budgeted Overhead Cost Budgeted Level for Cost
Driver Overhead Cost Driver
Materials handling $160,000 3,200 pounds Weight of
materials
Machine setup 13,200 390 setups Number of setups
Machine repair 1,380 30,000 machine hours Machine hours
Inspections 10,560 160 inspections Number of inspections
Requirements for Job #971 which manufactured 4 units of product:
Direct labor 20 hours
Direct materials 130 pounds
Machine setup 30 setups
Machine hours 15,000 machine hours
Inspections 15 inspections
Using ABC, overhead cost assigned to Job #971 for inspections is:
68. Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and
had the following manufacturing overhead:
Overhead Cost Pool Budgeted Overhead Cost Budgeted Level for Cost
Driver Overhead Cost Driver
Materials handling $160,000 3,200 pounds Weight of materials
Machine setup 13,200 390 setups Number of setups
Machine repair 1,380 30,000 machine hours Machine hours
Inspections 10,560 160 inspections Number of inspections
Requirements for Job #971 which manufactured 4 units of product:
Direct labor 20 hours
Direct materials 130 pounds
Machine setup 30 setups
Machine hours 15,000 machine hours
Inspections 15 inspections
The total overhead of Job #971 under the ABC costing is:
