ACCT 344 Week 3 Homework

1. Question: Alliance Company manufactures two products (brushes and combs). The overhead costs have been divided into four cost pools that use the following activity drivers…………………..

a. Compute the allocation rates for each of the activity drivers listed.

b. Allocate the overhead costs to Products S and T using activity-based costing

c. Compute the overhead rate using machine hours under the functional-based costing system.

d. Allocate the overhead costs to Products S and T using the functional-based costing system overhead rate calculated in part (c).

2. Question:Complete Exercise 4.10 located on page 182 & 183 in the textbook.

ACCT 344Week 3 Quiz

1. Question: (TCO 8) A predetermined overhead rate is calculated using which formula?

2. Question: (TCO 8) All of the following are unit-based activity drivers EXCEPT

3. Question: (TCO 8) A department that is capital intensive most likely would use a predetermined departmental overhead rate based on which activity base?

4. Question: (TCO 8) Star Inc. uses a job-order costing system to account for product costs. The following information was provided for the current year. Materials placed in production $160,000 Indirect labor $50,000 Direct labor (10,000 hours) $180,000 Depreciation of factory building $80,000 Other factory overhead $130,000 Increase in work-in-process inventory $45,000 Factory overhead rate per direct labor hour $25 Which is the amount of under- or overapplied overhead for Star Inc.?

5. Question: (TCO 8) Acme Company manufactures two products (anvils and barrels). Overhead costs ($84,000) have been divided into three cost pools, which use the following activity drivers…….

6. Question: (TCO 8) Which is NOT a limitation of a plantwide overhead rate?

7. Question: (TCO 8) The resources consumed by the activity in producing its output are called

8. Question: (TCO 8) Which is NOT part of the cost dimension of the activity-based management model?

9. Question: (TCO 8) Which is an example of a non-value-added manufacturing activity?

10. Question: (TCO 8) The process that involves choosing among various sets of activities that are caused by competing strategies is called……