10. Testing a prototype of a new product is an example of a A. Unit-level activi

Question

10. Testing a prototype of a new product is an example of a A. Unit-level activity B. Batch-level activity C. Product-level activity D. Organization-sustaining activity 11. True/False Activity-based costing uses a number of activity cost pools, each of which is allocated to products on the basis of direct labor-hours. costs from high-volume to low-volume products 13.Trae/False In activity-based costing, non manufacturing costs may be assigned to products Use the ollow ing information for the next four questions: Your Corporation has provided ng pte ma following information for the next four questions: Your Corporation has provided the following data from its activity-based costing system Activity Cost Pool Total Cost Total Activity Assembly Processing orders..$00,763 1.900 orders Inspection.. S119,333 1950 isspoction-hours $698,7244,000 machine-hours Procasing onden.$90 763 Calculate the activity rate for Assembly Calculate the activity rate for Processing orders Calculate the activity rate for Inspection. 14 15. 16. (four points-show your work!!) The company makes 340 units of 17 product P23F a year, requiring a total of 710 machine-hours, 80 orders, and 40 inspection-hours per year. The product's direct materials cost is $40.05 per unit and its direct labor cost is $14.3 per unit. The product sells for $121.90 per unit. What is the prodhact margin for prodact P23F using the activity-based costing system?

Explanation / Answer

10)Option c. As it s prototypeof a new product going to be developed it comeds under product level activity.

11)False.In activity based costing each activity will be having different cost pools based on the activity.

12)True. As in Activity based costing uses different cost pools than labour hours used in traditional costing the low volume products ay have seperate cost pools which will be allocated to them completely and cost may go high

13)True. Both manufacturing and non manufacturing costs are assigned to products

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