ASAP QUIZ!!!!!!!

Which statement isFALSEin regards to the treatment of direct material costs under anactivity-based costing system?

Direct material costs are handled in the same manner under both an ABC system and a traditional cost system.

Direct material costs are treated as a product cost under an ABC system.

Direct material costs arenotincluded inthe product cost under an ABC system.

Direct material costs go directly into the cost of the productunder an ABC system.

Which of the following statements intrue?

Both traditional (one PDOHR) and Activity-Based Costing systems are used to accumulate total product costs.

An Activity-Based Costing system is easier to use but less effective than a traditional system (one PDOHR).

A traditional costing system (one PDOHR) can only be used when applying a process manufacturing system.

Only Activity-Based Costing can be used when applying a job-order costing system.

Under an Activity-Based Costing (ABC) system, indirect manufacturing costs are first categorized into which of the following?

none of the above

batch orders

activity pools.

job numbers

Assume a company has the following information:

Activity Pools: Total Cost Activity Driver

Machine Setups $15,000 100 setups

Material Moves $22,500 225 material moves

Machine Operations $14,000 175 machine hours

Product X used the following quantity of activity drivers to produce 100 units of final product:

25 setups, 40 material moves and 75 machine hours

What is thecost allocation rateused for applyingmachine setup coststo product X?

$294 per machine hour

$80 per machine hour

$100 per unit produced

$150 per setup

1. Activity Pools: Total Cost Activity Driver

   Machine Setups $15,000 100 setups

   Material Moves $22,500 225 material moves

   Machine Operations $14,000 175 machine hours

   Product X used the following quantity of activity drivers to produce 100 units of final product:

   25 setups, 40 material moves and 75 machine hours

   What is thetotal indirect manufacturing cost per unitforproduct X based on an ABC system?

   $150 per unit

   $137.50 per unit

   $9.82 per unit

   $80 per unit