Which of the following is NOT a difference between Activity Based Costing and Traditional Costing Group of answer choices ABC excludes some manufacturing costs from the cost object, where Traditional Costing does not ABC traces or allocates direct materials, direct labor, and overhead costs to cost objects, where Traditional Costing does not ABC uses a variety of activities to allocate overhead, where Traditional tends to use volume related activities ABC includes some nonmanufacturing costs in the cost object, where Traditional Costing does not 2 Given the following information, complete the first stage of allocation for the ABC method Do NOT use dollar signs ($) Cost Pool Description Estimated Cost Driver and guard wages $720,000 Vehicle operating expense 280,000 Vehicle depreciation 120,000 Customer Rep Salaries 160,000 Office expenses 30,000 Admin expenses 320,000 Travel Pickup Delivery Customer Service Other Total Driver and guard wages 50 35 10 5 100 Vehicle operating expense 70 5 0 25 100 Vehicle depreciation 60 15 0 25 100 Customer rep salaries 0 0 90 10 100 Office expenses 0 20 30 50 100 Admin expenses 0 5 60 35 100 Travel Pickup Delivery Customer Service Other Total Driver and guard wages Vehicle operating expense Vehicle depreciation Customer rep salaries expenses Office expenses Admin expenses Totals 628,000 306,000 417,000 279,000 1,630,000 Question 3 2 pts Using the info from question 2 (total costs from last row) and the information below, calculate the activity rates for travel, pickup delivery, and customer service Use 2 decimal places Activity Estimated Activity 10,000 miles Travel Pickup Delivery Customer Service 1,000 shipments 300 customers Activity Activity Rate Travel $ per mile Pickup Delivery $ per shipment Customer Service $ per customer Question 4 2 pts Using the information from question 3 above and the information to follow to apply overhead costs for one customer who requires 8 shipments with 800 miles of travel Use 2 decimal places for any numbers with decimals For whole numbers, do not use decimals The only one that should require decimals is the activity rate for travel Activity Activity Amount Activity Rate Applied Overhead $ Travel per $ $ miles mile per Pickup Delivery $ shipments shipment $ per Customer Service $ customer customer Total $ $

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Question: Which of the following is NOT a difference between Activity-Based Costing and Traditional Costing? Group of answer choices ABC excludes some manufacturing costs from the

Which of the following is NOT a difference between Activity-Based Costing and Traditional Costing?

Group of answer choices

ABC excludes some manufacturing costs from the cost object, where Traditional Costing does not.

ABC traces or allocates direct materials, direct labor, and overhead costs to cost objects, where Traditional Costing does not.

ABC uses a variety of activities to allocate overhead, where Traditional tends to use volume-related activities.

ABC includes some nonmanufacturing costs in the cost object, where Traditional Costing does not.

2. Given the following information, complete the first stage of allocation for the ABC method. Do NOT use dollar signs ($).

Cost Pool Description	Estimated Cost
Driver and guard wages	$720,000
Vehicle operating expense	280,000
Vehicle depreciation	120,000
Customer Rep. Salaries	160,000
Office expenses	30,000
Admin expenses	320,000

	Travel	Pickup & Delivery	Customer Service	Other	Total
Driver and guard wages	50%	35%	10%	5%	100%
Vehicle operating expense	70%	5%	0%	25%	100%
Vehicle depreciation	60%	15%	0%	25%	100%
Customer rep. salaries	0%	0%	90%	10%	100%
Office expenses	0%	20%	30%	50%	100%
Admin expenses	0%	5%	60%	35%	100%

Which of the following is NOT a difference between Activity-Based Costing and Traditional Costing? Group of answer choices ABC excludes some manufacturing costs from the cost object, where Traditional Costing does not. ABC traces or allocates

Travel Pickup & Delivery Customer Service Other Total Driver and guard wages Vehicle operating expense Vehicle depreciation Customer rep. salaries & expenses Office expenses Admin expenses Totals 628,000 306,000 417,000 279,000 1,630,000 Question 3 2 pts Using the info from question #2 (total costs from last row) and the information below, calculate the activity rates for travel, pickup & delivery, and customer service. Use 2 decimal places. Activity Estimated Activity. 10,000 miles Travel Pickup & Delivery Customer Service 1,000 shipments 300 customers Activity. Activity Rate Travel $ per mile Pickup & Delivery $ per shipment Customer Service $ per customer Question 4 2 pts Using the information from question #3 above and the information to follow to apply overhead costs for one customer who requires 8 shipments with 800 miles of travel. Use 2 decimal places for any numbers with decimals. For whole numbers, do not use decimals. The only one that should require decimals is the activity rate for travel. Activity Activity Amount Activity Rate Applied Overhead $ Travel per $ $ miles mile per Pickup & Delivery $ shipments shipment $ per Customer Service $ customer customer Total $ $

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