Solution
1) Option C, External Failure Cost
Testing of the computers before shipping them to customers is appraisal cost. This would ensure that the product is as per the customer specifications. If the product is as per the customer specifications, external failure cost need not be incurred. Therefore testing of computers before shipping to customers reduces external failure cost.
2) Option D, all of the listed options are correct.
3) Option A, Product level activity
The legal cost of filing patent for a new model of scooter is associated with a particular product irrespective of the number of units or batches produced. Therefore it is product level activity.
4) Option C, Activity Based Costing
Activity based costing involves more accurate way of allocating costs with reduced cost distortions.
please get back to me asap! A computer manufacturer's spending on testing its computers before shipping...
1. Which costing system is most likely to produce the least cost distortion? a. Departmental overhead allocation rates b. Plantwide overhead rate c. Activity-based costing d. Traditional costing system 2. The cost of reworking defective products before shipping to customers would be classified as which type of quality costs? a. External failure cost b. Internal failure cost c. Prevention cost d. Appraisal cost 3. A window manufacturer has a commitment to lean production. What is not a benefit from adopting...
quick question 1 The new production environment refers to an environment in which company managers are concerned with: Select one or more: a. Improving customer service and product quality b. Reducing costs I c. Increasing government regulation d. a and b above. e. All of the above. 2 In Texas Instruments' cost of quality program, the managers' task was to maximize the sum of prevention, appraisal, internal failure, and external failure costs. Select one: True O False 3 Just-in-time production...
Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $50 per machine hour, while the Sanding Department uses a departmental overhead rate of $30 per direct labor hour. Job 542 used the following direct labor hours and machine hours in the two departments: Assembly Department Sanding Department Actual results Direct labor hours used Machine hours used 10 o The...
Required information [The following information applies to the questions displayed below.] Knickknack, Inc. manufactures two products: Odds and Ends. The firm uses a single, plantwide overhead rate based on direct-labor hours. Production and product-costing data are as follows: Odds $ Production quantity Direct material Direct labor (not including setup time) Manufacturing overhead 40 20 (2 hr. at $15) 96 (2 hr. at $48) 166 Ends 5,000 units $ 60 15 (3 hr. at $15) 144 (3 hr. at $48) $...
Automotive Products (AP) designs and produces automotive parts. In 2017, actual manufacturing overhead is $280,000. AP's simple costing system allocates manufacturing overhead to its three customers based on machine-hours and prices its contracts based on full costs. One of its customers has regularly complained of being charged noncompetitive prices, so AP's controller Devon Johnson realizes that it is time to examine the consumption of overhead resources more closely. He knows that there are three main departments that consume overhead resources:...
Can you help show how you get the answers for this? Check my work mode : This shows whet is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 3 Kitchen Kings toledo plant mamutacturethree Procct nsel mot-tu product models are the Regufar (REG), the Advanced AD), and the Gourmet (GMT). Until recently, the plant used a ob-order product-costing system. with manufacturing overhead all mult-butnec cerarnc cookto plant's three applied...
Please help Check my work mode : This shows whet is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 3 Kitchen Kings toledo plant mamutacturethree Procct nsel mot-tu product models are the Regufar (REG), the Advanced AD), and the Gourmet (GMT). Until recently, the plant used a ob-order product-costing system. with manufacturing overhead all mult-butnec cerarnc cookto plant's three applied on the basis of ditional costing system was based....
Please indicate whether the following statements are true or false by circling a T or an F 1. Direct and indirect materials may both come from the same source 0 0 2. Factory overhead includes the cost of selling and advertising the product | 0 3. Fixed costs remain constant in total, the average fixed costs becomes progressively smaller as the level of activity increases 0 0 4. Work in process represent goods that have some or all raw materials,...
Please help Check my work mode : This shows whet is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 3 Kitchen Kings toledo plant mamutacturethree Procct nsel mot-tu product models are the Regufar (REG), the Advanced AD), and the Gourmet (GMT). Until recently, the plant used a ob-order product-costing system. with manufacturing overhead all mult-butnec cerarnc cookto plant's three applied on the basis of ditional costing system was based....
can you help me with the answers to questions 3-10? Merge & Center - S - % ) 38- Insert Delete com Conditional Formatas Cell Formatting Table - Styles Styles Alignment Number Clipboard 166 Font x ve Supervision $1,700,000 1,000 850 3,500 HT 5350 S 317.76 $ 317,757.01 225 666.67 $ 100,000.00 SOS770 $ 14.11 $3,314,030.08S Supplies Units manufacture 150 110 $190,000 $8,550,000 25 Total 234,300 175,420 191.550 Questions: 3. Use activity based costing to allocate the costs of overhead...