Question: In an activity-based costing system, the first step in assigning costs is to a. accumulate costs for each activity. b. identify the appropriate activities for
In an activity-based costing system, the first step in assigning costs is to
| a. | accumulate costs for each activity. | |
| b. | identify the appropriate activities for each function. | |
| c. | separate nonvalue-adding activities from value-adding activities. | |
| d. | analyze all nonvalue-adding activities to determine if they are necessary support areas. |
Harrah Company provided the following information for the month of August:
Beginning cash balance $ 70,000
Cash receipts 460,000
Cash disbursements 525,000
Harrahs policy is to keep a minimum end of the month cash balance of $30,000. How much will Harrahs need to borrow during August?
| a. | $20,000 | |
| b. | $25,000 | |
| c. | $10,000 | |
| d. | $0 |
Bay Company had actual production of 220 units in the month of April. Budgeted standard fixed overhead costs were $20,000, based on normal capacity of 800 direct labor hours per month. The time standard was 4 direct labor hours per unit. The fixed overhead volume variance for April was
| a. | $3,600 F | |
| b. | $3,600 U | |
| c. | $2,000 F | |
| d. | $2,000 U |
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