Blog

Abnormal spoilage is treated differently from normal spoilage in what way?

Allocation increases total costs.

Fantasmas Incorporated had the following information: ​ Activity Driver Unit Variable Cost Level of Activity Driver Units sold $         20    — Setups  1,200    60 Engineering hours     52 1,500       Other data:         Total fixed costs (traditional) $600,000       Total fixed costs (ABC) $360,000       Unit selling price      $         60   ​ What is the break-even point in units using ABC?

Activity-based budgeting recognizes interdependencies among departments.

In a __________ costing system, production costs are accumulated by process.

Information about the Harmonious Company’s two products includes: ​   Product X Product Y Unit selling price $11.25 $11.25 Unit variable costs:         Manufacturing $  5.25 $  6.75     Selling    .75     .75 Total $  6.00 $  7.50       Monthly fixed costs are as follows:         Manufacturing $  82,500       Selling and administrative     45,000   Total $127,500   ​ What is the total monthly sales volume in units required to break even when the sales mix in units is 70 percent Product X and 30 percent Product Y?

Cost accumulation is the determination of the dollar amounts of direct materials, direct labor and overhead costs, and cost measurement is the recognition and recording of costs.

Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost drivers have been developed:   Activity Cost Formula Maintenance $11,000 + $2 per machine hour Machining $55,000 + $3 per machine hour Inspection $70,000 + $500 per batch Setups $2,000 per batch Purchasing $80,000 + $150 per purchase order ​ Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders   Maintenance $20,000 Machining 73,000 Inspection 73,000 Setups 18,000 Purchasing 82,000 ​ What is the budget variance for setups in an activity-based performance report?

Equivalent units expresses all activity of the period in terms of

Activity-based budgets compare costs for items based on activities such as