1 . McCaskey Corporation used an activity-based costing system with the following three activity cost pools:
Activity cost pool
Total activity
Fabrication
40,000
Machine hours
Order processing
500
Others
Other
N/A
The other activity cost pool is used to accumulate cost of idle capacity and organization- sustaining cost.
The has providing the following data concerning it cost:
Wages and Salaries
$469,000
Depreciation
$191,000
Occupancy
$120,000
Total
$780,000
The distribution of resource consumption across activity cost pool is given below:
Activity cost pools
Fabrication
Order processing
Other
Total
Wages and Salaries
20%
60%
20%
100%
Depreciation
20%
25%
55%
100%
Occupancy
20%
45%
35%
100%
The activity rate for the fabrication activity cost pool is closed to:
a. $0.65 per machine- hour
b. $3.90 per machine-hour
c. $4.88 per machine- hour
d. 2.25 per machine-hour
2. Spendlove corporation has provided the following data from its activity-based costing system
Activity cost pool
Total cost
Total activity
Assembly
$1,282,140
61,200
Machine- hours
Processing orders
$53,958.00
20,40
Orders
Inspection
$181,350
23,40
Inspection- hour
The company makes 1,100 units of product S78N a year, requiring a total of 12,00 machine hours, 131 orders, and 31 inspection-hour per year. The product’s direct material cost is $50,89 per units and its direct labor cost is $20.56 per unit. The product sells of $113.30 per unit.
According to the activity-based costing system, the product margin for product S78N is : (Round your intermediate calculation to 2 decimal place).
a. $117,430.05
b. $46,035.00
c. $18,492.05
d. $15,027.55
3.Matt Company used activity- based costing. The company has two product. A and B. the annual production and sales of product A is 9,000 units and of product B is 6,500 units. There are three activity cost pool with total activity as follow:
Total Activity
Activity Cost Pool
Total Cost
Product A
Product B
Total
Activity 1
$36,260
250
350
700
Activity 2
$48,037
880
330
1,210
Activity 3
$120,450
850
3,530
4,380
The activity based costing cost per unit of product Ais closest to:
a. $14.33
b. $4.54
c. $7.84
d. $3.94
4. The controller Ferrence Company estimates the amount of material handing overhead cost that should be allocated to the company’s two product using the data that are given below:
Wall Mirrors
Specialty Windows
Total Expected Units Produced
11,900
1,710
Total Expected Material Moves
1,190
1,610
Expected Direct Labor- Hour Per Unit
7
8
The total material handing cost for the year is expected to be $17,148.70.
If the material handing cost is allocated on the basis of direct labor- hours, how much of the total material handing cost would e allocated to the wall mirrors?
a. $9,566
b. $14,727
c. $12,894
d. $7,917
1. A duration driver is :
a. A simple count of the number of times an activity occurs.
b. An activity measures that is used for the life of an activity- based costing system.
c. An activity measures that is used for the life of company.
d. A measures of the amount of time required to perform an activity.
2. Spendlove corporation has provided the following data from its activity-based costing system
Activity cost pool
Total cost
Total activity
Assembly
$1,282,140
61,200
Machine- hours
Processing orders
$53,958.00
20,40
Orders
Inspection
$181,350
23,40
Inspection- hour
The company makes 1,100 units of product S78N a year, requiring a total of 12,00 machine hours, 131 orders, and 31 inspection-hour per year. The product’s direct material cost is $50,89 per units and its direct labor cost is $20.56 per unit. The product sells of $113.30 per unit.
According to the activity-based costing system, the product margin for product S78N is : (Round your intermediate calculation to 2 decimal place).
a. $117,430.05
b. $46,035.00
c. $18,492.05
d. $15,027.55
3.Matt Company used activity- based costing. The company has two product. A and B. the annual production and sales of product A is 9,000 units and of product B is 6,500 units. There are three activity cost pool with total activity as follow:
Total Activity
Activity Cost Pool
Total Cost
Product A
Product B
Total
Activity 1
$36,260
250
350
700
Activity 2
$48,037
880
330
1,210
Activity 3
$120,450
850
3,530
4,380
The activity based costing cost per unit of product Ais closest to:
a. $14.33
b. $4.54
c. $7.84
d. $3.94
4. The controller Ferrence Company estimates the amount of material handing overhead cost that should be allocated to the company’s two product using the data that are given below:
Wall Mirrors
Specialty Windows
Total Expected Units Produced
11,900
1,710
Total Expected Material Moves
1,190
1,610
Expected Direct Labor- Hour Per Unit
7
8
The total material handing cost for the year is expected to be $17,148.70.
If the material handing cost is allocated on the basis of direct labor- hours, how much of the total material handing cost would e allocated to the wall mirrors?
a. $9,566
b. $14,727
c. $12,894
d. $7,917
1. Good marketing is no accident, but a result of careful planning and ________.
a. execution
b. selling
c. strategies
d. tactics
e. research
2. The most formal definition of marketing is ________.
a. meeting needs profitably
b. identifying and meeting human and social needs
c. the 4Ps (Product, Price, Place, Promotion)
d. an organizational function and a set of processes for creating, communicating, and delivering, value to customers, and for managing customer relationships in ways that benefit the organization and its stake holders.
e. improving the quality of life for consumers
3. Charles Revson of Revlon observed: “In the factory, we make cosmetics; in the store, ________.”
a. we make profits
b. we challenge competitors
c. we implement ads
d. we sell hope
e. we sell quality
4. A key ingredient of the marketing management process is insightful, ________ marketing strategies and plans that can guide marketing activities.
a. creative
b. measurable
c. macro
d. micro
e. niche
1. The task of any business is to deliver ________ at a profit.
a. customer needs
b. products
c. customer value
d. products and services
e. improved quality
2. Today, the “mass-market” is actually splintering into numerous ________, each with its own wants, perceptions, preferences, and buying criteria.
a. micromarkets
b. market targets
c. macromarkets
d. customer cliques
e. demographic units
3. The Japanese have refined the value delivery process to include a component that emphasizes ________.
a. zero servicing
b. zero customer feedback time
c. zero promotion
d. zero dependency on intermediaries
e. zero marketing costs
4. The firm’s success depends not only on how well each department performs its work, but also on how well the various departmental activities are coordinated to conduct ________.
a. core strategies
b. satellite businesses
c. core values
d. core business processes
e. core technologies
1. The major responsibility for identifying significant marketplace changes falls to the ________.
a. Ministry of Labor & Social Affairs
b. company’s marketers
c. American Marketing Association
d. industry lobby groups found in Washington, D.C.
e. marketing research industry
2. Marketers have extensive information about how consumption patterns vary across countries. On a per capita basis within Western Europe, the ________ smoke the most cigarettes.
a. Swiss
b. Greeks
c. Irish
d. Austrians
e. French
3. The company’s marketing information system should be a cross between what managers think they need, what managers really need, and ________.
a. what the marketing research department is able to do
b. what consumers are willing to share
c. what the competition is doing
d. what is acceptable industry practice
e. what is economically feasible
4. A ________ is “unpredictable, short-lived, and without social, economic, and political significance.”
a. fad
b. fashion
c. trend
d. megatrend
e. style
