Question 1

The use of departmental overhead rates will generally result in the use of a

Accepted Answer

A)  single cost allocation base.
B)  separate cost allocation base for each department in the factory.
C)  single overhead cost pool for the factory.
D)  separate cost allocation base for each activity in the factory.

Question 2

Inspection is considered a value-added activity.

Accepted Answer

A) True 
 B)False

Question 3

Sparrow Manufacturing manufactures small parts and uses an activity-based costing system.

The following parts were produced in October with the following information:

Total manufacturing costs for part B is

Accepted Answer

A)  $8,200.
B)  $15,200.
C)  $5,400.
D)  $12,400.

Exam 4: Activity Based Costing

Sparrow Manufacturing manufactures small parts and uses an activity-based costing system. The following parts were produced in October with the following information: Total manufacturing costs for part B is

Correct Answer
verified

Inspection is considered a value-added activity.

Correct Answer
verified

The use of departmental overhead rates will generally result in the use of a

Correct Answer
verified

Exam 4: Activity Based Costing

Sparrow Manufacturing manufactures small parts and uses an activity-based costing system. The following parts were produced in October with the following information: Total manufacturing costs for part B is

Correct AnswerverifiedShow Answer

Inspection is considered a value-added activity.

Correct AnswerverifiedShow Answer

The use of departmental overhead rates will generally result in the use of a

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified