Accounting Review

Review Chapter 8

21. Daniele Corporation uses an activity-based costing system with the following three activity cost pools:

The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs.
The company has provided the following data concerning its costs:

The distribution of resource consumption across activity cost pools is given below:

The activity rate for the Fabrication activity cost pool is closest to:
A. $3.72 per machine-hour
B. $4.44 per machine-hour
C. $7.44 per machine-hour
D. $1.24 per machine-hour

22. Lippincott Corporation uses an activity-based costing system with the following three activity cost pools:

The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs.
The company has provided the following data concerning its costs:

The distribution of resource consumption across activity cost pools is given below:

The activity rate for the Order Processing activity cost pool is closest to:
A. $1,050 per order
B. $1,680 per order
C. $1,190 per order
D. $1,350 per order

23. Whiting Corporation has provided the following data concerning its overhead costs for the coming year:

The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year:

The Other activity cost pool does not have a measure of activity; it is used to accumulate costs of idle capacity and organization-sustaining costs.
The distribution of resource consumption across activity cost pools is given below:

The activity rate for the Assembly activity cost pool is closest to:
A. $4.30 per labor-hour
B. $7.00 per labor-hour
C. $8.60 per labor-hour
D. $12.90 per labor-hour

24. Cuna Corporation has provided the following data concerning its overhead costs for the coming year:

The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year:

The Other activity cost pool does not have a measure of activity; it is used to accumulate costs of idle capacity and organization-sustaining costs.
The distribution of resource consumption across activity cost pools is given below:

The activity rate for the Order Processing activity cost pool is closest to:
A. $905 per order
B. $630 per order
C. $1,080 per order
D. $840 per order

25. Kassabian Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system:

How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool?
A. $314,000
B. $272,333
C. $215,000
D. $430,000                                                                                                                26. Emmette Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system:

How much cost, in total, would be allocated in the first-stage allocation to the Setting Up activity cost pool?
A. $325,000
B. $312,000
C. $333,000
D. $429,000

27. Graney Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system:

How much cost, in total, would be allocated in the first-stage allocation to the Other activity cost pool?
A. $143,000
B. $144,000
C. $108,000
D. $135,000

28. Vanfleet Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs:

How much cost, in total, would be allocated in the first-stage allocation to the Fabricating activity cost pool?
A. $120,000
B. $216,000
C. $161,000
D. $108,000

29. Stoudmire Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs:

How much cost, in total, would be allocated in the first-stage allocation to the Order Processing activity cost pool?
A. $462,000
B. $407,000
C. $396,000
D. $431,000