2024 – 1 A duration driver is a A simple count of the number

Multiple Questions Answers – 2024

1. A duration driver is :
a. A simple count of the number of times an activity occurs.
b. An activity measures that is used for the life of an activity- based costing system.
c. An activity measures that is used for the life of company.
d. A measures of the amount of time required to perform an activity.

2. Spendlove corporation has provided the following data from its activity-based costing system

Activity cost pool

Total cost

Total activity

Assembly

$1,282,140

61,200

Machine- hours

Processing orders

$53,958.00

20,40

Orders

Inspection

$181,350

23,40

Inspection- hour

 
The company makes 1,100 units of product S78N a year, requiring a total of 12,00 machine hours, 131 orders, and 31 inspection-hour per year. The product’s direct material cost is $50,89 per units and its direct labor cost is $20.56 per unit. The product sells of $113.30 per unit.
According to the activity-based costing system, the product margin for product S78N is : (Round your intermediate calculation to 2 decimal place).
a. $117,430.05
b. $46,035.00
c. $18,492.05
d. $15,027.55
 
3.Matt Company used activity- based costing. The company has two product. A and B. the annual production and sales of product A is 9,000 units and of product B is  6,500 units. There are three activity cost pool with total activity as follow:

 

 

Total Activity

Activity Cost Pool

Total Cost

Product A

Product B

Total

Activity 1

$36,260

250

350

700

Activity 2

$48,037

880

330

1,210

Activity 3

$120,450

850

3,530

4,380


The activity based costing cost per unit of product Ais closest to:
a. $14.33
b. $4.54
c. $7.84
d. $3.94


4. The controller Ferrence Company estimates the amount of material handing  overhead cost that should be allocated to the company’s two product using the data that are given below:

 

Wall Mirrors

Specialty Windows

Total Expected Units Produced

11,900

1,710

Total Expected Material Moves

1,190

1,610

Expected Direct Labor- Hour Per Unit

7

8


The total material handing cost for the year is expected to be $17,148.70.
If the material handing cost is allocated on the basis of direct labor- hours, how much of the total material handing cost would e allocated to the wall mirrors?
a. $9,566
b. $14,727
c. $12,894
d. $7,917

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