ACC 241 Exam 2 ASU Dallmus questions with
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answers
departmental overhead allocation - CORRECT ANSWERS |\ |\ |\ |\ |\ |\
✔✔this kind of overheard rate increases the accuracy of
|\ |\ |\ |\ |\ |\ |\ |\ |\
job costs when each department incurs different types
|\ |\ |\ |\ |\ |\ |\ |\
and amounts of manufacturing overhead and each
|\ |\ |\ |\ |\ |\ |\
product, or job, uses the departments to a different
|\ |\ |\ |\ |\ |\ |\ |\ |\
extent
formula: total estimated departmental overhead cost
|\ |\ |\ |\ |\ |\
pool/total estimated amount of the departmental |\ |\ |\ |\ |\ |\
allocation base |\
steps of activity based costing - CORRECT ANSWERS
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✔✔1.Identify the activities and estimate the |\ |\ |\ |\ |\ |\
manufacturing overhead costs of each activity |\ |\ |\ |\ |\
2.Select the allocation base for each activity and estimate
|\ |\ |\ |\ |\ |\ |\ |\
the total amount that will be used during the year
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
3.Compute cost allocation rate for each activity : |\ |\ |\ |\ |\ |\ |\ |\
Estimated total indirect costs of activity /Estimated total
|\ |\ |\ |\ |\ |\ |\ |\
quantity of cost allocation base |\ |\ |\ |\
4. Allocate some manufacturing overhead from each
|\ |\ |\ |\ |\ |\ |\
activity to the individual cost object
|\ |\ |\ |\ |\
, What are the four categories of activity costs in the cost
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hierarchy? - CORRECT ANSWERS ✔✔1: Unit-Level |\ |\ |\ |\ |\ |\
Activities
2: Batch-Level Activities
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3: Product-Level Activities
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4: Facility-Level Activities
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What are Unit-Level Activities? - CORRECT ANSWERS ✔✔-
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Activities and costs incurred for every unit-Ex:
|\ |\ |\ |\ |\ |\ |\
Inspecting/packaging each unit the company produces |\ |\ |\ |\ |\
What are Batch-Level Activities? - CORRECT ANSWERS
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✔✔-Activities/costs incurred for every batch, regardless of |\ |\ |\ |\ |\ |\
the number of units in the batch-Ex: Machine Setup -->
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Once the machines are set up to be used in production,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the company could produce a batch of 1, 10, or 100 units,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
while still only incurring the machine setup cost once for
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the entire batch
|\ |\
What are Product-Level Activities? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔-Activities and costs incurred for a particular product, |\ |\ |\ |\ |\ |\ |\ |\
regardless of the number of units or batches of the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
product produced-Ex: The cost to research, develop,
|\ |\ |\ |\ |\ |\ |\
design, and market new models |\ |\ |\ |\
|\ |\ |\ |\ |\ |\ |\ |\
answers
departmental overhead allocation - CORRECT ANSWERS |\ |\ |\ |\ |\ |\
✔✔this kind of overheard rate increases the accuracy of
|\ |\ |\ |\ |\ |\ |\ |\ |\
job costs when each department incurs different types
|\ |\ |\ |\ |\ |\ |\ |\
and amounts of manufacturing overhead and each
|\ |\ |\ |\ |\ |\ |\
product, or job, uses the departments to a different
|\ |\ |\ |\ |\ |\ |\ |\ |\
extent
formula: total estimated departmental overhead cost
|\ |\ |\ |\ |\ |\
pool/total estimated amount of the departmental |\ |\ |\ |\ |\ |\
allocation base |\
steps of activity based costing - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\
✔✔1.Identify the activities and estimate the |\ |\ |\ |\ |\ |\
manufacturing overhead costs of each activity |\ |\ |\ |\ |\
2.Select the allocation base for each activity and estimate
|\ |\ |\ |\ |\ |\ |\ |\
the total amount that will be used during the year
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
3.Compute cost allocation rate for each activity : |\ |\ |\ |\ |\ |\ |\ |\
Estimated total indirect costs of activity /Estimated total
|\ |\ |\ |\ |\ |\ |\ |\
quantity of cost allocation base |\ |\ |\ |\
4. Allocate some manufacturing overhead from each
|\ |\ |\ |\ |\ |\ |\
activity to the individual cost object
|\ |\ |\ |\ |\
, What are the four categories of activity costs in the cost
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
hierarchy? - CORRECT ANSWERS ✔✔1: Unit-Level |\ |\ |\ |\ |\ |\
Activities
2: Batch-Level Activities
|\ |\
3: Product-Level Activities
|\ |\
4: Facility-Level Activities
|\ |\
What are Unit-Level Activities? - CORRECT ANSWERS ✔✔-
|\ |\ |\ |\ |\ |\ |\
Activities and costs incurred for every unit-Ex:
|\ |\ |\ |\ |\ |\ |\
Inspecting/packaging each unit the company produces |\ |\ |\ |\ |\
What are Batch-Level Activities? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔-Activities/costs incurred for every batch, regardless of |\ |\ |\ |\ |\ |\
the number of units in the batch-Ex: Machine Setup -->
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Once the machines are set up to be used in production,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the company could produce a batch of 1, 10, or 100 units,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
while still only incurring the machine setup cost once for
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the entire batch
|\ |\
What are Product-Level Activities? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔-Activities and costs incurred for a particular product, |\ |\ |\ |\ |\ |\ |\ |\
regardless of the number of units or batches of the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
product produced-Ex: The cost to research, develop,
|\ |\ |\ |\ |\ |\ |\
design, and market new models |\ |\ |\ |\
