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2 Maggie's Motors manufactures boat motors. Maggie is shifting from a traditional costing system to an activity-based costirg nystem, She has started by identifying four overhead cost activities. Below is the table that Magsle crested identifying the cont activities and the percentage of time spent on each activity by varioua factory enployes If all four of these emplogees have the same salary, which activity will have the least amount of octhcad assigned to it? Engineering changes Ordering parts inspecting mators Repairing equipment The Dormir Company uses an activity-based costing system to account for its process of manufacturing camping tents. Direct laber, direct materials, and overhead costs are included in the cost of making the tents. The four manufacturing activities are materials handiling, sewing, aniembling, and testing For which of these activitie would the number of finhled tents be the most appropriate cost driver? Materiats handing Sewing Assembling Testing The Dormir Company uses an activity-based costing system to account for its peocess of manufacturing camping tents. To make a tent, the activities of materials handlieg. A sewing, assembling, and testing are required. For which of these activitiet would machine hours be the most appropriate cost drriver? Assembing Materials handing Sewing Testing: Maggie's Motors manufactures boat motors. Maggie is shifting from a traditional conting wystem to an sctivity-based costing syutem. She has atarted by identifying four ovethead cost activities. Below is the table that Magcie created lidentifying the cont activities and the percentage of time apent on each activity by various factory employer. If all four of these individuals huve the same salary, which activity would be ausgened the highent cost? Engineering changes Repairing equipment Ordering parts inspecting motors Blaine Comparyy has a total of $1,000,000 in manufacturing overhead costs. Of this amount, 5700,000 is directly related to the number of product batches peoduced during. A activity, How should Blaine Company allocate facility support costs to the different prodocts it produces? By the number of batches By nroduct profitability By direct labor hours Facility support costs should not be allocated to products. Activity-based costing is aften criticited for one main reason. Waich of the following reasons is the main criticisat of activity baind costing? It is too complicated and takes too much time. It is less accurate in assigning overhead costs than is using one general basis to assigh overthead costs. It is not accurate enough. It dae unt properly reflect the amount of overhead costs that should be assigned to each activity. Which of the followine productr unutly conumes the highrst amount of overbead conts per unit? High volume unique products high-volume standard products Lowpolume un que producti Low volume standad products Company A allocates overhead costs using activity-hased costing. Company B uses direct labor hours to allocate all overhead conts. Which of the following is true? Company As total sales amount would be more accurate than Company Bs. Company A's cost of goods sold would be more accurate than Company Bs. Company As gross margin would be more accurate than Company ers. Both Company A's cost of goods sold and gross margin would be more accurate than company 8s. Which of the following would be a good cost drivet to use for an inspection activity in activity based costins? Number of batches to make a product Number of parts in the various products made Number of custodial workers in a facilify thut makes a product Direct labor hours used to make various products (5) packaring. For which of these activities would the number of orders thipped be the best cost driver? inspections. packegins Automaked proch swing Materais handline

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