Estimated costs for activity cost pools and other item( s) are as follows: Machining $ 500,000 Assembling 200,000 Advertising 450,000 Inspecting and testing 175,000 Total estimated overhead is
Question 6
The presence of any of the following factors would suggest a switch to ABC except when
Question 7 Use of activity-based costing will result in the development of Question 8 An example of an activity cost pool is Question 9
Direct labor is sometimes the appropriate basis for assigning overhead cost to products. It is appropriate to use direct labor when which of the following is true?
( 1) Direct labor constitutes a significant part of total product cost.( 2) A high correlation exists between direct labor and changes in the amount of overhead costs.
Question 10
An activity that has a direct cause-effect relationship with the resources consumed is a( n)