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STAYER ACC 560 Week 4 Quiz 2 (Chapter 4) NEW
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560-week-4-quiz-2-recent
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Question 1
Reynoso Corporation manufactures titanium and aluminum
tennis racquets. Reynoso’s total overhead costs consist of
assembly costs and inspection costs. The following information
is available:
Cost Titanium Aluminum Total Cost
Assembly 500 mach. hours 500 mach. hours $60,000
Inspections 350 150 $100,000
2,100 labor hours 1,900 labor hours
Reynoso is considering switching from one overhead rate
based on labor hours to activity-based costing.
Using activity-based costing, how much assembly cost is
assigned to titanium racquets
Question 2
Boswell Company manufactures two products, Regular and
Supreme. Boswell’s overhead costs consist of machining,
$3,000,000; and assembling, $1,500,000. Information on the
two products is:
Regular Supreme
Direct labor hours 10,000 15,000
Machine hours 10,000 30,000
Number of parts 90,000 160,000
Overhead applied to Regular using activity-based costing is
Question 3
Which best describes the flow of overhead costs in an activity-
based costing system?
Question 4
An activity-based overhead rate is computed as follows:
Question 5
Estimated costs for activity cost pools and other item(s) are as
follows:
Machining $500,000
Assembling 200,000
Advertising 450,000
Inspecting and testing 175,000
Total estimated overhead is
Question 6
The presence of any of the following factors would suggest a
switch to ABC except when
Question 7
Use of activity-based costing will result in the development of
Question 8
An example of an activity cost pool is
Question 9
Direct labor is sometimes the appropriate basis for assigning
overhead cost to products. It is appropriate to use direct labor
when which of the following is true?
(1) Direct labor constitutes a significant part of total product
cost.
(2) A high correlation exists between direct labor and changes
in the amount of overhead costs.
Question 10
An activity that has a direct cause-effect relationship with the
resources consumed is a(n)

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Stayer acc 560 week 4 quiz 2

  • 1. STAYER ACC 560 Week 4 Quiz 2 (Chapter 4) NEW Check this A+ tutorial guideline at http://www.uopassignments.com/acc-560-strayer/acc- 560-week-4-quiz-2-recent For more classes visit http://www.uopassignments.com/ Question 1 Reynoso Corporation manufactures titanium and aluminum tennis racquets. Reynoso’s total overhead costs consist of assembly costs and inspection costs. The following information is available: Cost Titanium Aluminum Total Cost Assembly 500 mach. hours 500 mach. hours $60,000 Inspections 350 150 $100,000 2,100 labor hours 1,900 labor hours Reynoso is considering switching from one overhead rate based on labor hours to activity-based costing. Using activity-based costing, how much assembly cost is assigned to titanium racquets Question 2 Boswell Company manufactures two products, Regular and Supreme. Boswell’s overhead costs consist of machining, $3,000,000; and assembling, $1,500,000. Information on the two products is: Regular Supreme Direct labor hours 10,000 15,000 Machine hours 10,000 30,000
  • 2. Number of parts 90,000 160,000 Overhead applied to Regular using activity-based costing is Question 3 Which best describes the flow of overhead costs in an activity- based costing system? Question 4 An activity-based overhead rate is computed as follows: Question 5 Estimated costs for activity cost pools and other item(s) are as follows: Machining $500,000 Assembling 200,000 Advertising 450,000 Inspecting and testing 175,000 Total estimated overhead is Question 6 The presence of any of the following factors would suggest a switch to ABC except when Question 7 Use of activity-based costing will result in the development of Question 8 An example of an activity cost pool is Question 9 Direct labor is sometimes the appropriate basis for assigning overhead cost to products. It is appropriate to use direct labor when which of the following is true? (1) Direct labor constitutes a significant part of total product cost.
  • 3. (2) A high correlation exists between direct labor and changes in the amount of overhead costs. Question 10 An activity that has a direct cause-effect relationship with the resources consumed is a(n)