Question

1.

Use this information to do questions 42-48

Jones company makes two products A & B. Here is some financial information about those products.

                         A    B     Combined total cost of cost drivers

Direct labor    $45,000 $35,000

Direct materials              $40,000 $30,000

Cost drivers

               Set ups 6    4 $10,000

             Inspections    4    6 $5,000

                 Test Runs 12     8 $25,000

                 Units produced    1000 1000

If ABC computed overhead at the rate of 50 cents per labor dollar, what is the total cost for product A?

		$107,500
		$33000
		$107000
		$108000

2.

ABC as used in this class refers to

		Activity Based Costing
		allocation before conservation
		the fundamentals of accounting
		Always Be Careful

3.

The supervisor makes $80,000 for an 8 hour shift . If the company decided to run two shifts they would need to hire another supervisor for the second shift . The supervisor's salary is

		variable
		mixed cost
		Fixed over the relevant range of one shift
		constant

4.

Use this information to do questions 42-48

Jones company makes two products A & B. Here is some financial information about those products.

                         A    B     Combined total cost of cost drivers

Direct labor    $45,000 $35,000

Direct materials              $40,000 $30,000

Cost drivers

               Set ups 6    4 $10,000

             Inspections    4    6 $5,000

                 Test Runs 12     8 $25,000

                 Units produced    1000 1000

If ABC computed overhead at the rate of 50 cents per labor dollar, what is the total cost for product B?

		$108000
		$78000
		$82500
		$82000

Answer 1