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Manal Elkhoshkhany
Manal Elkhoshkhany, Tutor
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Hello, I know this isnt a 24 hour notice, but I have a timed

This answer was rated:

Hello, I know this isn't a 24 hour notice, but I have a timed assignment due by midnight tonight. Do you have time this evening?




I asked you to advise me "48 hours" in advance not "24" :), I am real busy tonight, but do you know how long would the assignment be? How many questions, and how much time is allowed?

Customer: replied 4 years ago.
There are 10 questions in cost accounting. I have until midnight to submitt.


oh so it is not really timed :) Ok, please post the questions and I will make sure I post the solutions before midnight


Thank you :)

Customer: replied 4 years ago.
Ok thanks. Just to let you know when I open it I can't close it or it will just give me a zero.

1. Allocated joint costs are useful for (Points : 1)
setting the selling price of a product.
determining whether to continue producing an item.
controlling user department costs.
evaluating management by means of a responsibility reporting system.
determining inventory cost for accounting purposes.

2. The use of dual rates in a cost allocation system assumes that common costs can be (Points : 1)
separated into their fixed and variable components.
traced directly to a specific division or manager.
allocated based on a physical quantities measure.
assigned to an investment responsibility center.

3. Which of the following items would be classified as a batch-level cost in an activity-based cost management (ABM) system? (Points : 1)
indirect labor
production supervisor's salary
depreciation on factory building
machinery set-up costs

4. The unused resource capacity is the difference between the resources supplied and the resources (Points : 1)
on hand.

5. Yellow Industries decides to price delivery service according to the results of a recent activity-based costing (ABC) study. The study indicates Yellow should charge $8 per order, 2% of the order's value for general delivery costs, $1.25 per item, and $30 for delivery.

A year later, Yellow collected the following information for two of its best customers:
Cost Driver Customer C Customer D
Number of orders 18 8
Number of deliveries 10 10
Number of items 2,000 4,000
Order value $120,000 $ 80,000

What are the total delivery costs charged to Customer D during the year? (Points : 1)

6. Which of the following is a weakness of the step method of service cost allocations? (Points : 1)
Some user departments are ignored.
All interdepartmental services are ignored.
All intradepartmental services are ignored.
The order of service department allocation has to be determined.
Computations are more complex than the reciprocal method.

7. The Waverly Company has budgeted sales for the year 2008 as follows:

Quarter 1 2 3 4
Sales in units 12,000 14,000 18,000 16,000

The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 3,000 units. Scheduled production for the second quarter is (in units) (Points : 1)

8. Relative performance evaluations (RPE) are not designed to (Points : 1)
compare managers to other comparable managers.
compare divisions with other comparable divisions.
remove the effect of environmental factors that are beyond a manager's control.
restate departmental goals so meaningful comparisons can be made.

9. If a company has units in its beginning and ending Work-in-Process Inventories, these units can be (Points : 1)
ignored because they have an insignificant impact on the production budget.
ignored because the degrees of completion are estimated amounts based subjective judgments.
expressed in terms of equivalent finished units and incorporated into the sales budget.
expressed in terms of equivalent finished units and treated as budgetary slack in the production budget.

10. Gundy Press reports the following information about resources. At the beginning of the year, Gundy estimated it would spend $42,000 for setups and $21,000 for clerical.
Cost Driver Rate Cost Driver Volume
Resources used
Setups $250 175 runs
Clerical 30 500 pages typed

Resources supplied
Setups $45,000
Clerical 20,000

Compute unused resource capacity for clerical for Gundy Press. (Points : 1)

working on them



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Manal Elkhoshkhany, Tutor
Category: Homework
Satisfied Customers: 9796
Experience: More than 5000 online tutoring sessions.
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