Gem Systems
Gem Systems uses an activity-based costing system. The company has gathered the
following information concerning various cost pools and activity drivers;
The following data was collected and is specific to Job 150.
Refer to Gem Systems. Calculate the product cost of one unit of Job 150.
A.$11.74
B.$13.00
C.$ 8.74
D.$16.74
If direct labor cost is fixed, then it is considered to be which type of cost in the cost
hierarchy?
A.product-level cost.
B.facility-level cost.
C.unit-level cost.
D.either “a” or “b”
Flexible budgeting-manufacturing costs. As a result of studying past cost behavior
and adjusting for expected price increases in the future, Goldman Company estimates
that its manufacturing costs will be as follows:
Required:
Goldman uses these estimates for planning and control purposes.
a. Goldman expects to produce 25,000 units during the next period. Prepare a schedule
of the expected manufacturing costs.
b. Suppose that Goldman produces only 18,000 units during the next period. Prepare a
flexible budget of manufacturing costs for the 18,000-unit level of activity.
c. Suppose that Goldman produces 28,000 units during the next period. Prepare a
flexible budget of manufacturing costs for the 28,000-unit level of activity.
Which of the following is a transfer pricing system that provides the selling division
with a profit but charges the buying division with costs only?
A.hybrid.
B.dual.
C.bifurcated.
D.split-off.
The major cost pool(s) for traditional methods is/are
A.the “plant.”
B.the employees.
C.the activity center.
D.the management team.
Which of the following would be considered an intrinsic reward?
A.the satisfaction from studying hard.
B.providing help to someone in need.
C.doing a good job.
D.All of the answers are correct.
Sun Devil, Inc.
Sun Devil, Inc. is considering the introduction of a new product with the following
price and cost characteristics
It expects to sell 70,000 units for the year.
Refer to Sun Devil, Inc; if 7,000 units are sold, what operating profit is expected?
A.$ 225,000
B.$ 50,000
C.$ 525,000
D.$ 350,000
The costs of staffing and operating the accounting department at Columbia Hospital for
Women would be considered by the Department of Surgery to be which of the
following?
A.direct costs.
B.indirect costs.
C.incremental costs.
D.controllable costs.
On a balanced scorecard, the measure of economic value-added would most likely be
an example of a performance measure in the:
A.financial dimension
B.customer dimension
C.internal business process dimension
D.learning and growth dimension
During the joint production process, the costs incurred after the splitoff point are called
A.additional processing costs.
B.standard processing costs.
C.fixed processing costs.
D.normal processing costs.