Cost Accounting Quiz
13 questions · no time limit
0:00
OVERHEAD ALLOCATION AND ACTIVITY-BASED COSTING
Question 1 of 13
No time limit
Current
Answered
Flagged
Not seen
PASSAGE
A company uses activity-based costing. The 'Order Processing' cost pool has a budgeted cost of $120,000 and the 'Customer Service' cost pool has a budgeted cost of $80,000. The activity driver for order processing is the number of orders, with a practical capacity of 4,000 orders. The driver for customer service is the number of service calls, with a practical capacity of 2,000 calls. During the year, 3,000 orders were processed and 1,800 service calls were handled.
If the company assigns overhead based on the practical capacity rates but allocates only the cost of resources used to products, how much total overhead cost from these two pools would be reported as period expense for unused capacity?
YOUR PROGRESS
13
QUESTIONS
Ready when you are
Answer in any order. Your progress shows here as you go.
QUESTIONS
KEYBOARD
Pick an answer ABCD
Next question ↵→
Previous ←
Flag for review F
Answers save as you go · flagged questions come back at the end