ACC 3300 Quiz 5

Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead:
OH Cost Pool - Budgeted OH - Budgeted Lvl Cost Driver-OH Cost Driver
Materials Handling - 160,000-3200 lbs - Weight of material

$1600
Find direct labor hours
Budgeted Costs/Direct labor hours = Cost of DL hours
(160,000+13260=1380+10560)/2315 = $80
OH
Cost of labor x direct labor
80 * 20 = 1600

Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year:
Cost Pool -- Budgeted Cost - Cost Driver - Cost Driver Lvl
Setup - 40,000 - Number of setups - 200
Ordering - 20,000 - Number of orders - 1,000
Maintenanc

2400

Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $432,000 payroll for 4,800 direct labor-hours. Listed below is cost driver information used in the product-costing system:
Usin

44432

Which one of the following is not a recommendation for a successful implementation of ABC/M?
Obtain support of management and personnel.
You Answered
Complete an activity analysis.
Start with a relatively simple system.
Use ABC/M on a job that will succee

All

The examination of the efficiency of each of a firm's activities is:

Activity analysis.

Which one of the following is not a unit-level cost driver?
Direct labor hours.
Direct material dollars.
Machine hours.
Production orders.
None of the above.

Production orders.

Which of the following is most likely to be the cost driver for the packaging and shipping activity?

Number of orders.

The management of activities to improve the value received by the customer and the competitiveness of the organization is:

Activity-based management.

The cost of unused capacity can be determined using ABC costing for the purpose of:

Helping managers plan the short and longer-term use of the operating resources.

Diamond Cleats Co. manufactures cleats for baseball shoes. It has outlined the following overhead cost drivers:
ABC costing helps an organization implement its strategy through all of the following means except:

Helping improve cycle time.