71) Assuming the relative-sales-value method of allocating joint costs, the amount of joint costs allocated to product A would be

A) $19,600.

B) $37,692.

C) $29,120.

D) $16,640.

72) Assuming the relative-sales-value method of allocating joint costs, the amount of joint costs allocated to product R would be

A) $49,000.00.

B) $39,760.00.

C) $69,014.40.

D) $22,720.00.

73) Assuming the relative-sales-value method of allocating joint costs, the amount of joint costs allocated to product E would be

A) $40,600.00.

B) $64,444.40.

C) $58,000.00.

D) $35,280.00.

74) Activity-based costing is also known as

A) transaction-based costing.

B) motivation-based costing.

C) objective-based costing.

D) variable-based costing.

75) Which of the following is NOT likely to be a cost driver?

A) Production orders

B) Material requisitions

C) Cost accountant’s labour hours

D) Product inspections

76) Which of the following is NOT likely to be an activity in an activity-based costing system?

A) Materials handling

B) Inspection

C) Accounting

D) Assembly

Stanley Corp. manufactures two models of its roasting pans, a standard and a deluxe model.  Three activities have been identified as cost drivers and the related costs pooled together to arrive at the following information:

Product

Number of

Setups

Number of

Components

Number of

Orders

Standard

12

8

440

Deluxe

16

14

750

Costs per pool

$30,000

$76,000

$14,000

77) If activity-based costing is used, then the product setup cost for the standard model would be

A) $12,857.

B) $17,143.

C) $1,071.

D) $1,866.

78) If activity-based costing is used, then the total cost of the components used in the deluxe model would be

A) $3,455.

B) $27,636.

C) $48,364.

D) $76,000.

79) If activity-based costing is used, then the total amount of overhead allocated to the standard model would be

A) $74,330.

B) $120,000.

C) $40,000.

D) $45,670.

80) If activity-based costing is used, then the total amount of overhead allocated to the deluxe model would be

A) $45,670.

B) $74,330.

C) $120,000.

D) $ 80,000.



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