EBK CORNERSTONES OF COST MANAGEMENT
4th Edition
ISBN: 8220103648561
Author: MOWEN
Publisher: Cengage Learning US
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Textbook Question
Chapter 4, Problem 26E
Nonunit-level drivers are prominent in activity-based coting systems. Which of the following is a nonunit-level driver?
- a. Machine hours
- b. Direct materials
- c. Assembly hours
- d. Setup hours
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Nonunit-level drivers are prominent in activity-based coting systems. Which of the following is anonunit-level driver?a. Machine hoursb. Direct materialsc. Assembly hoursd. Setup hours
What is process capability? Explain the difference between specification limits and process control limits. Consider a process with lower process control limit as 1.335 and upper process control limit as 1.345. The lower specification limit is 1.338 and upper specification limit is 1.342. Using a diagram, comment on whether the process is capable of meeting requirements.
Which of the following is a nonunit-level driver?
a. Direct labor hours
b. Machine hours
c. Direct materials
d. Setup hours
e. Assembly hours
Chapter 4 Solutions
EBK CORNERSTONES OF COST MANAGEMENT
Ch. 4 - What is a predetermined overhead rate? Explain why...Ch. 4 - Describe what is meant by under- and overapplied...Ch. 4 - Explain how a plantwide overhead rate, using a...Ch. 4 - What are non-unit-related overhead activities?...Ch. 4 - What is an overhead consumption ratio?Ch. 4 - Overhead costs are the source of product cost...Ch. 4 - What is activity-based product costing?Ch. 4 - What are the six steps that define the design of...Ch. 4 - Explain how the cost of resources is assigned to...Ch. 4 - Prob. 10DQ
Ch. 4 - Identify and define two types of activity drivers.Ch. 4 - What are unit-level activities? Batch-level...Ch. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 1CECh. 4 - Warner Company has the following data for the past...Ch. 4 - Lansing. Inc., provided the following data for its...Ch. 4 - Larsen, Inc., produces two types of electronic...Ch. 4 - Roberts Company produces two weed eaters: basic...Ch. 4 - Golding Bank provided the following data about its...Ch. 4 - Golding Bank provided the following data about its...Ch. 4 - Electan Company produces two types of printers....Ch. 4 - Patterson Company produces wafers for integrated...Ch. 4 - Selected activities and other information are...Ch. 4 - Ripley, Inc., costs products using a normal...Ch. 4 - Predetermined Overhead Rate, Application of...Ch. 4 - Craig Company uses a predetermined overhead rate...Ch. 4 - Departmental Overhead Rates Mariposa, Inc.,...Ch. 4 - McCourt Company produces two types of leather...Ch. 4 - Deoro Company has identified the following...Ch. 4 - Prob. 17ECh. 4 - Secondary Activities Refer to the interview in...Ch. 4 - Bob Randall, cost accounting manager for Hemple...Ch. 4 - Prob. 20ECh. 4 - Bob Randall, cost accounting manager for Hemple...Ch. 4 - Silven Company has identified the following...Ch. 4 - Silven Company has identified the following...Ch. 4 - Gee Manufacturing produces two models of camshafts...Ch. 4 - Cushing, Inc., costs products using a normal...Ch. 4 - Nonunit-level drivers are prominent in...Ch. 4 - Plata Company has identified the following...Ch. 4 - Assume that the inspection activity has an...Ch. 4 - Consider the information given on two products and...Ch. 4 - Primera Company produces two products and uses a...Ch. 4 - Fisico Company produces exercise bikes. One of its...Ch. 4 - Prob. 32PCh. 4 - Glencoe First National Bank operated for years...Ch. 4 - Autotech Manufacturing is engaged in the...Ch. 4 - The Bienestar Cardiology Clinic has two major...Ch. 4 - Reducir, Inc., produces two different types of...Ch. 4 - Refer to the data given in Problem 4.36 and...Ch. 4 - Escuha Company produces two type of calculators:...
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- Which among the following is not a non volume related support activity? a. Production scheduling b. Labour hours c. Production set up d. Data processing please i want answer fastly without explaination.arrow_forwardLabel each of the following activities as unit-level batch-level, product-level, or facility-level activity. Determine one or more potential cost driver(s) for each activities. warehouse expense machine setup quality control engineering design production schedulingarrow_forwardProviding the power required to run production equipment is an example of unit-level activity. Why is it not for a batch-level activity or product-level activity since both will require power? Please explain in detail by giving some examples of other activity levels (batch and product).arrow_forward
- What are the objectives of a cost management information system?arrow_forwardIdentify appropriate cost drivers for these cost pools: A. setup cost pools B. assembly cost pool C. supervising cost pool D. testing cost poolarrow_forwardA forklift and its driver used for moving materials are examples of a. activity inputs. b. activity output measures. c. resource drivers. d. activity outputs. e. root causes.arrow_forward
- The following items are associated with a traditional cost accounting information system, an activity-based cost accounting information system, or both (that is, some elements are common to the two systems): a. Usage of direct materials b. Direct materials cost assigned to products using direct tracing c. Direct labor cost incurrence d. Direct labor cost assigned to products using direct tracing e. Setup cost incurrence f. Setup cost assigned using number of setups as the activity driver g. Setup cost assigned using direct labor hours as the activity driver h. Cost accounting personnel i. Submission of a bid, using product cost plus 25 percent j. Purchasing cost incurrence k. Purchasing cost assigned to products using direct labor hours as the activity driver l. Purchasing cost assigned to products using number of orders as the activity driver m. Materials handling cost incurrence n. Materials handling cost assigned using the number of moves as the activity driver o. Materials handling cost assigned using direct labor hours as the activity driver p. Computer q. Costing out of products r. Decision to continue making a part rather than buying it s. Printer t. Customer service cost incurred u. Customer service cost assigned to products using number of complaints as the activity driver v. Report detailing individual product costs w. Commission cost x. Commission cost assigned to products using units sold as the activity driver y. Plant depreciation z. Plant depreciation assigned to products using direct labor hours Required: 1. For each cost system, classify the relevant items into one of the following categories: a. Interrelated parts b. Processes c. Objectives d. Inputs e. Outputs f. User actions 2. Explain the choices that differ between the two systems. Which system will provide the best support for the user actions? Explain. 3. Draw an operational model that illustrates each cost accounting systemwith the items that belong to the system used as examples for each component of the model. 4. Based on the operational models, comment on the relative costs and benefits of the two systems. Which system should be chosen?arrow_forwardActivity-based management includes both process value analysis and activity-based costing. Which of the following features is primarily associated with process value analysis? a. Defining root causes of each activity b. Identifying cost objects and activity drivers c. Calculating activity rate d. Assigning costs to cost objectsarrow_forwardWhat is the proper order of tasks In an ABC system? identify the cost drivers, assign the costs to the products, calculate the overhead application rate for each cost pool, identify the cost pools assign the costs to the products, identify the cost drivers, calculate the overhead application rate for each cost pool, identify the cost pools identify the cost drivers, identify the cost pools, calculate the overhead application rate for each cost pool, assign the costs to the products identify the cost pools, identify the cost drivers, calculate the overhead application rate for each cost pool, assign the costs to the productsarrow_forward
- In highly automated manufacturing, the most appropriate base for factory overhead application is: a. machine hours b. physical output c. direct materials cost d. direct labor hoursarrow_forwardOne-time costs of system development include all of the following EXCEPT a. site preparation. b. hardware maintenance. c. programming. d. hardware acquisition. e. data conversion.arrow_forwardWhich of the following is a batch-related cost driver?a. number of machine hoursb. number of setupsc. number of engineering changesd. number of direct labor hourarrow_forward
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