When production is less than sales, operating income will be the same regardless of whether variable cost or absorption costing is used.

As product diversity and indirect costs increase, it is usually best to switch away from a broad averaging system to an activity-based cost system.

Extreme Manufacturing Company provides the following ABC costing information:           Activities                                          Total Costs                Activity-cost drivers         Account inquiry                               $750,000                           15,000 hours         Account billing                                 $250,000                       5,000,000 lines         Account verification accounts       $173,250                     70,000 accounts         Correspondence letters                    $42,000                            7,000 letters                Total costs                              $1,215,250                                              The above activities are used by Departments A and B as follows:                                                                            Department A                       Department B         Account inquiry hours                              2,000 hours                           3,500 hours         Account billing lines                               900,000 lines                        750,000 lines         Account verification accounts            9,000 accounts                     7,000 accounts         Correspondence letters                          1,200  letters                         1,600 letters   How much of the total costs will be assigned to Department B?

X-Industries manufactures 3-D printers. For each unit, $3,400 of direct material is used and there is $2,600 of direct manufacturing labor at $16 per hour. Manufacturing overhead is applied at $20 per direct manufacturing labor hour. Calculate the profit earned on 46 units if each unit sells for $9,500.

Franklin Inc. manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $18 per direct labor-hour. The following data are obtained from the accounting records for June 2018:                  Direct materials                                                         $170,000                Direct labor (4,600 hours @ $10/hour)                       46,000                Indirect labor                                                                  17,000                Plant facility rent                                                            34,000                Depreciation on plant machinery and equipment      24,500                Sales commissions                                                         33,000                Administrative expenses                                               28,000   For June 2018, manufacturing overhead is ________.

Extracts from cost information of Hebar Corp.:     Simple L3 Pack Complex L7 Pack Total   Setup cost allocated using direct labor-hours $19,250 $5,750 $25,000 Setup cost allocated using setup-hours $13,400 $11,600 $25,000   Assuming that setup-hours is considered a more effective cost drive for allocating setup costs than direct labor-hours. Which of the following statements is true of Hebar’s setup costs under traditional costing?

Which of the following is true with activity based cost accounting?

What was the amount of under- or overallocated manufacturing overhead?

Your topic for this test is to write a classification essay on ways of learning English.     1 Write a title for your essay. Explain why you chose it and why it fits in with a classification essay.  Your answer must be at least three sentences to count for credit. Your response will be graded for grammar and punctuation so write your answers carefully. 

Write a draft of your essay here.  Your essay must contain four paragraphs. Be sure to include your introduction,  two body paragraphs, and a conclusion. All paragraphs must be a minimum of five sentences.  Better paragraphs will require more writing.  Your draft should be about 20-30 sentences.