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ACC 212 Exam 2 Study Guide Questions with Correct
Answers | Updated (100% Correct Answers)
Which of the following statements is true with regard to the departmental
overhead rate method? Answer: It is logical to use this method when overhead
resources are consumed by various products in substantially different ways
throughout multiple departments.
From an ABC perspective, what causes costs to be incurred? Answer: Activities
A company uses activity-based costing to determine the costs of its three
products: A, B, and C. The budgeted cost and activity for each of the company's
three activity cost pools are shown in the following table: Answer: The activity
rate under the activity-based costing system for Activity 2 is $1.50.$45,000/(7,000
+ 15,000 + 8,000) = $1.50
Assume that the Oregon Ice Cream Company is considering the costs of two of
their product lines—ice cream sandwiches and dessert bars. The company
identified the following partial list of activities, costs, and activity drivers expected
for the next year. Answer: Extrusion activity rate: $637,500/(400 + 350) batches =
$850 per batchPackaging activity rate: $44,000/(350,000 + 200,000) units = $0.08
per unitIce cream sandwich product line allocations:Extrusion: $850 × 400
batches = $340,000Packaging: $.08 × 350,000 units = $28,000Total = $368,000
A company's product sells at $12.34 per unit and has a $5.51 per unit variable
cost. The company's total fixed costs are $96,300. The break-even point in units
is:
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, 2
A. 7,804
B. 14,100
C. 17,477
D. 4,837
E. 7,050 Answer: B. 14,100
($96,300/($12.34 − $5.51) = 14,100 units)
A product sells for $180 per unit, and its variable costs are 65% of sales. The fixed
costs are $360,500. What is the break-even point in sales dollars? (Do not round
intermediate calculations.)
A. $2,003
B. $360,500
C. $5,722
D. $554,615
E. $1,030,000 Answer: E. $1,030,000
Contribution margin ratio = ($180 − $117)/$180 = 35%Break-even point in sales
dollars = $360,500/0.35 = $1,030,000
The extent, or relative size, of fixed costs in the total cost structure is known as
operating leverage.
© 2026 All rights reserved
ACC 212 Exam 2 Study Guide Questions with Correct
Answers | Updated (100% Correct Answers)
Which of the following statements is true with regard to the departmental
overhead rate method? Answer: It is logical to use this method when overhead
resources are consumed by various products in substantially different ways
throughout multiple departments.
From an ABC perspective, what causes costs to be incurred? Answer: Activities
A company uses activity-based costing to determine the costs of its three
products: A, B, and C. The budgeted cost and activity for each of the company's
three activity cost pools are shown in the following table: Answer: The activity
rate under the activity-based costing system for Activity 2 is $1.50.$45,000/(7,000
+ 15,000 + 8,000) = $1.50
Assume that the Oregon Ice Cream Company is considering the costs of two of
their product lines—ice cream sandwiches and dessert bars. The company
identified the following partial list of activities, costs, and activity drivers expected
for the next year. Answer: Extrusion activity rate: $637,500/(400 + 350) batches =
$850 per batchPackaging activity rate: $44,000/(350,000 + 200,000) units = $0.08
per unitIce cream sandwich product line allocations:Extrusion: $850 × 400
batches = $340,000Packaging: $.08 × 350,000 units = $28,000Total = $368,000
A company's product sells at $12.34 per unit and has a $5.51 per unit variable
cost. The company's total fixed costs are $96,300. The break-even point in units
is:
© 2026 All rights reserved
, 2
A. 7,804
B. 14,100
C. 17,477
D. 4,837
E. 7,050 Answer: B. 14,100
($96,300/($12.34 − $5.51) = 14,100 units)
A product sells for $180 per unit, and its variable costs are 65% of sales. The fixed
costs are $360,500. What is the break-even point in sales dollars? (Do not round
intermediate calculations.)
A. $2,003
B. $360,500
C. $5,722
D. $554,615
E. $1,030,000 Answer: E. $1,030,000
Contribution margin ratio = ($180 − $117)/$180 = 35%Break-even point in sales
dollars = $360,500/0.35 = $1,030,000
The extent, or relative size, of fixed costs in the total cost structure is known as
operating leverage.
© 2026 All rights reserved
