Central Perk, LLC, a manufacturer of coffee beans, is considering switching itsoperations to an Activity Based Costing system. The following manufacturingoverhead activities and cost drivers have been identified:Activity.Machine setupMachine assemblyProduct inspectionProduct movementGeneral factoryCost DriverNumber of machine setupsMachine hours loggedInspection hours loggedNumber of movesMachine hours loggedBased on the above descriptions, which of the following correctly pairs the activitywith its appropriate cost level?O A. Product Inspection... batch level costOB. Product Movement... facility level costO C. Machine Assembly... unit level costO D. General Factory... batch level costO E. Machine Setup... unit level cost

Name: Central Perk, LLC, a manufacturer of coffee beans, is considering swi
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Description: Central Perk, LLC, a manufacturer of coffee beans, is considering switching itsoperations to an Activity Based Costing system. The following manufacturingoverhead activities and cost drivers have been identified:Activity.Machine setupMachine assembl

Manufacturer manufacture products with the use of machines, use labor, and incurred costs such as…

Business

Accounting

General factory Machine hours logged Based on the above descriptions, which of the following correctly pairs the activity with its appropriate cost level? O A. Product Inspection... batch level cost O B. Product Movement... facility level cost OC. Machine Assembly... unit level cost O D. General Factory... batch level cost O E. Machine Setup... unit level cost

General factory Machine hours logged Based on the above descriptions, which of the following correctly pairs the activity with its appropriate cost level? O A. Product Inspection... batch level cost O B. Product Movement... facility level cost OC. Machine Assembly... unit level cost O D. General Factory... batch level cost O E. Machine Setup... unit level cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Costs that are incurred as part of the manufacturing process, but are not clearly traceable to the specific unit of product or batches of product, are called a. Period costs. d. Operating expenses. b. Factory overhead. e. Fixed costs. c. Variable costs.
The process of assigning overhead costs to the jobs that are worked on is commonly called: O A. Overhead cost distribution B. Overhead cost apportionment C. Service department cost allocation D. Overhead application
The appropriate cost accounting system to use when inventory items are produced on an assembly line is a. perpetual method. b. job-order costing. c. weighted average. d. process costing.
Which of the following is a characteristic of the process costing method? a. Work in process inventory is restated in terms of completed units b. Costs are accumulated by order c. It is used by companies manufacturing custom machineries d. Standard cost is not applicable
In a process costing system, manufacturing overhead applied is usually recorded as a debit to______?
In activity-based costing, the activity rate for an activity cost pool is computed by dividing the total overhead cost in the activity cost pool by: Multiple Choice the direct labor-hours required by the product. the machine-hours required by the product. the total activity for the activity cost pool. the total direct labor-hours for the activity cost pool.
Which of the following measures is appropriate as a cost driver for machine set up activity costs?a. number of setupsb. machine hoursc. number of workersd. number of units
Maglie Company manufactures two video game consoles: handheld and home. The handheld consoles are smaller and less expensive than the home consoles. The company only recently began producing the home model. Since the introduction of the new product, profits have been steadily declining. Management believes that the accounting system is not accurately allocating costs to products, particularly because sales of the new product have been increasing. Management has asked you to investigate the cost allocation problem. You find that manufacturing overhead is currently assigned to products based on their direct labor costs. For your investigation, you have data from last year. Manufacturing overhead was $1,204,000 based on production of 300,000 handheld consoles and 92,000 home consoles. Direct labor and direct materials costs were as follows. Handheld Home Total $378,000 693,000 $1,505,000 1,433,000 Direct labor $1,127,000 740,000 Materials Management has determined that overhead costs are…
1. Activity Levels Determine the appropriate level for each of the following activities or costs. Indicate whether the activity is unit-level (UL), batch-level (BL), product-level (PL), facility-level (FL): A) Equipment setups B) Plant supervision C) Prime costs D) Packaging and shipments E) Designing, changing and advertising F) Heating, lighting G) Research and development H) Product order processing
As production occurs, materials, direct labor, and applied manufacturing overhead are recorded in a.materials. b.cost of goods sold. c.finished goods. d.work in process.
A completed job cost record shows the unit cost of the products. How is this calculated?