Question

1. All of the following are examples of product-level activities except: a. Advertising a product. b. Human resource management. C. Parts administration. d. Testing a prototype of a new product. 2. All of the following are examples of batch-level activities except: a. Purchase order processing. b. Setting up equipment. C. The clerical activity associated with processing purchase orders to produce an order for a standard product. d. Worker recreational facilities. 3. Landecker Company uses activity-based costing to determine the costs of its two products: #1 and #2. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: Activity Cost Pool Activity A Activity B Activity C Estimated Cost $37,600 $32.000 $28,000 Expected Activity Product #1 Product #2 800 300 2,200 1,800 400 300 Total 1,100 4,000 700 The activity rate under the activity-based costing system for Activity C is closest to: a. $34.18 b. $8.00 C. $40.00 d. $82.18 4. Hall Company has two products: A and B. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools: Activity Cost Pool Activity 1 Activity 2 Activity 3 Estimated Overhead Cost $ 40,000 $ 29,200 $180,000 Expected Activity Product A Product B 200 800 1,000 500 600 5,400 Total 1,000 1,500 6,000 The annual production and sales level of Product A is 9,094 units. The annual production and sales level of Product B is 15,826. The activity rate under the activity-based costing system for Activity 3 is closest to:

Answer 1

1. Human resource management (Related with Human and not products)

2. Worker recreational activities. (As depends on the number of workers)

3. The activity rate under Activity C is $40 ($28000/700)

4. The activity rate under Activity 3 is $30 ($18000/6000)