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M.A. QUIZ BEEKnow your ABC…
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4. (5C s customer service department follows up on customer ctelephone in6uiry. )uring a recent period' the department initiated 7'88
incurred costs of 28!'888. f 2'4#8 of these calls were for the compan₱operation 9the remainder were for the retail division ' costs allocatedivision should amount to:
". 8.₱(. 24.₱C. 30'2 8.₱). 117'7#8.₱
5 minutes
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18. (oac 5lorists uses an activity-based costing system to compute the cofloral bou6uets and delivering the bou6uets to its commercial custom
personnel who earn 138'888 typically perform both tasks; other firm-₱is e%pected to total 78'888. These costs are allocated as follows:₱
(ou6uet
+roduction )elivery$ages and salaries 8= !8= 18=
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&A'( )Know your ABC…
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ta. Cru> Cellars produces wine in *arindu6ue +rovince. Cofollowing selected costs that arose during the current year:
1. afety costs at winery2. Truckload shipping costs!. (uilding maintenance costs#. (ottle and cork cost0. )evelopment cost of new' after-dinner wine
. Tasting and testing costs
Classify the si% costs listed as arising from a unit-level' batch-levesustaining' or facility-level activity.
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2. ?asan Co. manufactures hand-made storage bo%es for a variety production manager' you have developed the following value chart:
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!. *" "ccounting performs two types of services' Ta% and Consulting. *" s overhead costs consist of comp288'888; and legal support' 188'888. nformation on the two services is:₱ ₱
Ta% Consulting)irect labor cost 08'888₱ 188'888₱C+, minutes #8'888 18'888
egal hours used 288 3881.
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