Good morning, I would need some help with these three questions please. 1. Which
ID: 2555146 • Letter: G
Question
Good morning, I would need some help with these three questions please.
1. Which of the following activity costs would not likely be included in a unit-level activity cost pool?
A.
Indirect material
B.
Packaging costs
C.
Machine setup costs
D.
Machine-related utilities
2. A product-level activity center would likely include all of the following costs except:
A.
engineering development costs.
B.
legal fees to obtain and protect patents.
C.
packaging design costs.
D.
materials handling costs.
3. Select the incorrect statement regarding the use of cost drivers in activity-based costing systems.
A.
ABC uses volume-based and activity-based cost drivers.
B.
Volume-based drivers are most appropriate for costs that are affected by the number of units produced.
C.
ABC's use of multiple cost drivers will produce less precise unit costs when a company produces many different products that require different types and levels of overhead costs.
D.
An arbitrary cost driver must be selected when allocating facility-level activity costs.
Thank you!
A.
Indirect material
Explanation / Answer
Which of the following activity costs would not likely be included in a unit-level activity cost pool?Ans-A. Indirect material Unit?level activities occur every time a service is performed or a product is made. The costs of direct materials, direct labor, and machine maintenance are examples of unit?level activities. So, the Indirect Material is not part of Unit-level activities A product-level activity center would likely include all of the following costs except:Ans-B.legal fees to obtain and protect patents Product?level activities are those activities that support an entire product line but not necessarily each individual unit. Examples of product?line activities are engineering changes made in the assembly line, product design changes, and warehousing and storage costs for each product line. Hence, Legal fees to Obtain and protect patents is financial cost Select the incorrect statement regarding the use of cost drivers in activity-based costing systems. Ans- B. Volume-based drivers are most appropriate for costs that are affected by the number of units produced.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.