ACC 241 Exam 2 ASU Dallmus Questions and Answers 100% Verified

ACC 241 Exam 2 ASU Dallmus Questions and Answers 100% Verified
Question: What is departmental overhead allocation?
Correct answer: This kind of overhead rate increases the
accuracy of job costs when each department incurs different
types and amounts of manufacturing overhead and each
product, or job, uses the departments to a different extent.
Formula: total estimated departmental overhead cost pool /
total estimated amount of the departmental allocation base
Question: What are the steps of activity-based costing?
Correct answer: 1. Identify the activities and estimate the
manufacturing overhead costs of each activity
2. Select the allocation base for each activity and estimate the
total amount that will be used during the year
3. Compute cost allocation rate for each activity: Estimated
total indirect costs of activity / Estimated total quantity of cost
allocation base
4. Allocate some manufacturing overhead from each activity
to the individual cost object
Question: What are the four categories of activity costs in the
cost hierarchy?
Correct answer: 1. Unit-Level Activities
2. Batch-Level Activities
3. Product-Level Activities
4. Facility-Level Activities

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