Author: Anonymous

Activity-based use of resources can improve both managerial control and decision making because it encourages managers to pay more attention to controlling resource usage and spending.

Determining the dollar amounts of direct materials, direct labor, and overhead used in production involves:

Alamo, Inc., is beginning the production of a new product. Management believes that 500 labor hours will be required to complete the new unit. An 80 percent incremental unit-time learning curve model for direct labor hours is assumed to be valid. Assume the q = −0.3219. Data on costs are as follows:   Direct materials $50,000 per unit Direct labor $20 per direct labor hour Variable manufacturing overhead $30 per direct labor hour ​ Required: a. Set up a table with columns for cumulative number of units showing the cumulative total time in hours using the incremental unit-time learning curve. Complete the table for 1, 2, 3, and 4 units given the individual unit time for the nth unit as 500, 400, 351, and 320 for 1 to 4 units respectively. b. Set up a similar table assuming a 90 percent with the incremental unit-time learning curve with the individual unit time for the nth unit as 500, 450, 430, 405 for 1 to 4 units respectively. c. What is the difference in variable cost of producing four units?

__________ drivers create distortions when different products utilize resources differently.

The annual expenses associated with the multi-period category is independent of actual usage of the resource and are referred to as:

In job-order costing, departmental overhead rates and activity-based costing affect only the application of overhead.

Expired costs used up in the generation of revenues are called __________ .

Define activity-based management. In your answer, present the activity-based management model in good form.

Andover,, Inc., has two producing departments. Each producing department is held responsible for a share of the costs of a support department. Actual and budgeted data are as follows: ​ Support department hours used:       Department L 12,000     Department M  4,000         Total hours 16,000     Support department costs:       Actual support department costs $48,000     Budgeted fixed department costs $20,000     Budgeted variable rate per hour $    2.50 ​ Normal support department usage is 8,000 hours each for Department L and Department M. Assuming the direct method is used and the purpose is product costing, support department costs allocated to Department L are

Direct materials are an example of a