Question

Question 4 12 pts Match the following phrases and terms. Some terms will not be used. No term will be used more than once. a method for keeping track of large amounts of homogenous units during the manufacturing process. [Choose ] a cost that does not increase proportionally with increases in volume over the relevant range, [Choose a cost that is difficult to efficiently trace to a product Choose ] follows ruled developed by the Internal Revenue Code [Choose) the purpose of this type of accounting is to prepare financial statements for the general public [Choose ] document that orders materials into production (into the WIP account). [Choose

Answer 1

Question 4:

a method for keeping track of large amounts of homogeneous units during the manufacturing process.	Process Costing
a cost that does not increase proportionally with increase in volume over the relevant range.	Fixed Cost
a cost that is difficult to efficiently trace to a product.	Indirect Cost
follows ruled developed by the internal revenue code.	Tax Accounting
the purpose of this type of accounting is to prepare financial statements for the general public.	Financial Accounting
document that orders materials into production (into the WIP account)	Material Requision

Question 5:

Overhead allocation rate = $3 per direct labor dollar.

Actual Direct manufacturing labor cost = $1,450,000

Overhead allocated to Jobs = $1,450,000 * $3 per direct labor dollar = $4,350,000

Question 8:

Answer: it takes more time and costs more money.

Explanation:

The advantages of Activity Based costing are

1. It allocates cost based on what drives the cost

2. It can provide better cost information.

3. It requires costs to be divided into separate buckets etc.

One of the down side of activity based costing is it takes more time and costs more money.

All the best...