ACC400 Wk 2 Apply - Apply Assignment - Ch. 17 and 18

1. Dawn Manufacturing applies manufacturing overhead at a rate of $40 per direct labor hour.

a. When during the year was this rate computed?

multiple choice

Beginning of the accounting period.
Middle of the accounting period.
End of the accounting period.

b. Describe briefly how this rate was computed.

Listed are the eight activity cost pools used by Charvez Corporation. Suggest an appropriate activity base for allocating each of the activity cost pools to products. (Consider each cost pool independently.)

a. Production set-up costs

multiple choice 1

The number of set-ups required (or, perhaps, number of production runs)
The square feet of production space occupied by each product line
The number of work orders related to each product line
The number of design or engineering change orders generated
The number of inspections related to each product line (rate of defects)
The number of purchase orders related to each product line
The percent of total square feet in the materials warehouse occupied by each product line (number of component parts per product line)
The total machine hours required to manufacture each product line

b. Heating costs

multiple choice 2

The number of set-ups required (or, perhaps, number of production runs)
The percent of total square feet in the materials warehouse occupied by each product line (number of component parts per product line)
The number of purchase orders related to each product line
The number of design or engineering change orders generated
The square feet of production space occupied by each product line
The number of work orders related to each product line
The number of inspections related to each product line (rate of defects)
The total machine hours required to manufacture each product line
The number of purchase orders related to each product line

c. Machinery power costs

multiple choice 3

The total machine hours required to manufacture each product line
The number of design or engineering change orders generated
The number of purchase orders related to each product line
The number of work orders related to each product line
The number of set-ups required (or, perhaps, number of production runs)
The percent of total square feet in the materials warehouse occupied by each product line (number of component parts per product line)
The square feet of production space occupied by each product line
The number of inspections related to each product line (rate of defects)

d. Purchasing department costs

multiple choice 4

The number of set-ups required (or, perhaps, number of production runs)
The total machine hours required to manufacture each product line
The number of inspections related to each product line (rate of defects)
The percent of total square feet in the materials warehouse occupied by each product line (number of component parts per product line)
The number of work orders related to each product line
The square feet of production space occupied by each product line
The number of purchase orders related to each product line
The number of design or engineering change orders generated

e. Maintenance costs

multiple choice 5

The number of inspections related to each product line (rate of defects)
The number of purchase orders related to each product line
The number of design or engineering change orders generated
The percent of total square feet in the materials warehouse occupied by each product line (number of component parts per product line)
The total machine hours required to manufacture each product line
The number of work orders related to each product line
The square feet of production space occupied by each product line
The number of set-ups required (or, perhaps, number of production runs)

f. Design and engineering costs

multiple choice 6

The total machine hours required to manufacture each product line
The number of design or engineering change orders generated
The number of work orders related to each product line
The square feet of production space occupied by each product line
The number of inspections related to each product line (rate of defects)
The number of set-ups required (or, perhaps, number of production runs)
The number of purchase orders related to each product line
The percent of total square feet in the materials warehouse occupied by each product line (number of component parts per product line)

g. Materials warehouse costs

multiple choice 7

The number of design or engineering change orders generated
The number of inspections related to each product line (rate of defects)
The square feet of production space occupied by each product line
The total machine hours required to manufacture each product line
The number of purchase orders related to each product line
The number of set-ups required (or, perhaps, number of production runs)
The number of work orders related to each product line
The percent of total square feet in the materials warehouse occupied by each product line (number of component parts per product line)

h. Product inspection costs

multiple choice 8

The number of design or engineering change orders generated
The number of work orders related to each product line
The number of set-ups required (or, perhaps, number of production runs)
The number of inspections related to each product line (rate of defects)
The total machine hours required to manufacture each product line
The number of purchase orders related to each product line
The square feet of production space occupied by each product line
The percent of total square feet in the materials warehouse occupied by each product line (number of component parts per product line)

4. Required information

[The following information applies to the questions displayed below.]
Select the appropriate cost system among Job order costing, Process costing, Activity-based costing used by the following businesses.

b. Walmart Inc.

multiple choice

Job order costing
Process costing
Activity-based costing

5. Required information

d. Handyman Special, Inc.

multiple choice

Job order costing
Process costing
Activity-based costing

6. Temple Industrial’s production cost report for its Packaging Department reveals that the cost per equivalent unit started and completed in November was $165. The same report reveals that the cost per equivalent unit transferred out of the Packaging Department in November was $162.

Were November manufacturing costs per equivalent unit higher than, lower than, or the same as October costs per equivalent unit?

multiple choice

Higher
Lower
Same

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