ACCT 212 Learnsmart Assignment 4 Liberty University Solution

Costs to implement an activity-based system are considered a of this system.

Jackson Company uses activity-based costing to allocate their overhead costs. Setup costs of $850,000 are based on number of batches. Design modifications of $155,000 are based on number of design changes. Jackson Company has identified 40,000 batches and has 5,000 design modifications. What is the activity rate for setup?

A collection of costs related to a similar activity is a(n) ____ cost pool.

Identify the four steps used to accumulate and allocate costs in an activity-based costing method. Rank these in the correct order.

Johnson Company has the following overhead costs: machine setup $25,000; factory maintenance $10,000; heating and lightning $15,000; and assembly line power $5,000. What is the total indirect labor using activity-based costing?

Applying a single overhead rate to all products is known as the ___ overhead rate method.

The cost object of the cost assignment under the plantwide overhead rate method is the

Mobile Company uses activity-based costing. One of their products, a phone, requires 20 setup activities at $50 per setup and 15 design modification activities at $1,000 per design. If mobile Company produces 2,000 phones, what is the total overhead cost per unit?

In activity-based costing, activities in each cost pool should be (similar/disimilar) .

Select all answers which apply. The plant wide overhead rate can be based on:

Advantages of using activity-based costing includes all of the following:

level activities are focused on the whole facility.

The overhead rate method which uses a different overhead rate for each production department is the

In activity-based costing, an activity cost_____ (driver, pool) is the factor which causes costs in the pool to be incurred

The departmental overhead rate method uses a four-step process to allocate cost objects. List these steps in the correct order

An activity which focuses on product lines and are not affected by number of units is a

During step 3 of activity-based costing, activity rates are used to assign overhead to products. Proper determination of activity rates depends on all of the following:

During the ____________ (first, second, third, fourth) step in activity-based costing, overhead costs in each activity cost pool are allocated to products.

A batch level activity will vary with the

List the four steps of activity-based costing in the correct order.

Which of the following are a type of overhead allocating method?

Landen Company uses a single plantwide overhead rate of $100 per direct labor hour (DLH). Landen has two products as follows: basic chairs which used 20 DLH and deluxe chairs which uses 35 DLH. What is the total amount allocated to these products?

____ (Identifying, Assigning, Tracing) activities is the first step in applying activity-based costing.

Activities causing overhead include all of the following:

____ (Unit, Batch, Product) activities are performed on each product unit.

What is the second step in activity-based costing?

Select all correct answers. The basis of the activity-based costing method is a(n)