{"id":21020,"date":"2021-12-07T16:54:37","date_gmt":"2021-12-07T16:54:37","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/the-average-cost-data-are-for-in-sync-fixtures-companys-a-retailer\/"},"modified":"2021-12-07T16:54:37","modified_gmt":"2021-12-07T16:54:37","slug":"the-average-cost-data-are-for-in-sync-fixtures-companys-a-retailer","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/the-average-cost-data-are-for-in-sync-fixtures-companys-a-retailer\/","title":{"rendered":"The average cost data are for in-sync fixtures company&#8217;s (a retailer)"},"content":{"rendered":"<div>\n<p><strong>1.\u00a0<\/strong><span><span>(TCO 1)\u00a0<span>The average cost data are for In-Sync Fixtures Company&#8217;s (a retailer) only two product lines, Marblette and Italian Marble.<\/span><\/span><\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>Marblette<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>Italian Marble<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>\u00a0<\/span><\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p><span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Purchase volume\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0 20,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,000\u00a0\u00a0\u00a0<\/span><\/p>\n<p><span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Purchase cost per unit\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $50\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $250\u00a0<\/span><\/p>\n<p><span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Shipments received\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 12\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a012\u00a0\u00a0<\/span><\/p>\n<p><span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Hours used per shipment\u00a0*\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 5\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03\u00a0\u00a0\u00a0<\/span><\/p>\n<p><strong><sup>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 *<\/sup><\/strong>\u00a0These data were accumulated after a careful activity analysis.<\/p>\n<p>\u00a0<\/p>\n<p><span>\u00a0\u00a0\u00a0\u00a0\u00a0 Currently, In-Sync Fixtures uses a traditional costing system with indirect costs allocated using purchased cost of goods as a basis.\u00a0 In-Sync Fixtures is considering refining the allocation of\u00a0its receiving costs of $40,000.\u00a0 It realizes that the Italian Marble is heavier and requires more care than the Marblette but that the Marblette comes in larger volume.<\/span><\/p>\n<p>\u00a0<\/p>\n<p><span>Which statement can be made using the results of the activity analysis performed by In-Sync Fixtures?<\/span><\/p>\n<p><span>\u00a0(Points : 3)\u00a0<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>The use of this refined activity-based costing system will increase the accuracy of the resulting product costs because a more appropriate cost driver will be used as the allocation base.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>The traditional allocation method being used is causing product-cost cross-subsidization with the product line Marblette being undercosted.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>The cost allocated to the Italian Marble product line under the\u00a0traditional system is more than the activity-based costing allocated cost.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>The use of this refined activity-based costing system will increase the accuracy of the resulting product costs becaues it probably will cost less to trace the costs to the product lines.<\/span><\/p>\n<table width=\"100%\">\n<tbody>\n<tr>\n<td>\n<table>\n<tbody>\n<tr>\n<td><span>Question 2.<\/span>\u00a0<strong>2.\u00a0<\/strong><span>(TCO 1) Building or plant security is an example of<\/span>\u00a0(Points : 3)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>unit-level costs.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>batch-level costs.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>product-sustaining costs.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>facility-sustaining costs.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table width=\"100%\">\n<tbody>\n<tr>\n<td>\n<table>\n<tbody>\n<tr>\n<td><span>Question 3.<\/span>\u00a0<strong>3.\u00a0<\/strong><span>(TCO 1) If products are alike, then for costing purposes<\/span>\u00a0(Points : 3)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>a simple costing system will yield accurate cost numbers.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>an activity-based costing system should be used.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>multiple indirect-cost rates should be used.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>varying demands will be placed on resources.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table width=\"100%\">\n<tbody>\n<tr>\n<td>\n<table>\n<tbody>\n<tr>\n<td><span>Question 4.<\/span>\u00a0<strong>4.\u00a0<\/strong><span>(TCO 1) Overcosting of a product is MOST likely to result from<\/span>\u00a0(Points : 3)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>misallocating direct labor costs.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>overpricing the product.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>undercosting another product.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>understating total product costs.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table width=\"100%\">\n<tbody>\n<tr>\n<td>\n<table>\n<tbody>\n<tr>\n<td><span>Question 5.<\/span>\u00a0<strong>5.\u00a0<\/strong><span>(TCO 1) The MOST likely example of an output unit-level cost is<\/span>\u00a0(Points : 3)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>general administrative costs.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>paying suppliers for orders received.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>engineering costs.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>machine depreciation.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table width=\"100%\">\n<tbody>\n<tr>\n<td>\n<table>\n<tbody>\n<tr>\n<td><span>Question 6.<\/span>\u00a0<strong>6.\u00a0<\/strong><span>(TCO 1) Different products consume different proportions of manufacturing overhead costs because of differences in all of the following EXCEPT<\/span>\u00a0(Points : 3)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>selling prices.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>customers&#8217; customization specifications.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>setup times.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>product design.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table width=\"100%\">\n<tbody>\n<tr>\n<td>\n<table>\n<tbody>\n<tr>\n<td><span>Question 7.<\/span>\u00a0<strong>7.\u00a0<\/strong><span>(TCO 1) A PRIMARY reason for assigning selling and distribution costs to products for analytical purposes is<\/span>\u00a0(Points : 3)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>to justify a\u00a0product mix.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>that controllers are required to assign all costs when valuing inventories.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>that different processes, products, and customers require different quantities of selling and distribution activities.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>that all indirect costs must be assigned.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table width=\"100%\">\n<tbody>\n<tr>\n<td>\n<table>\n<tbody>\n<tr>\n<td><span>Question 8.<\/span>\u00a0<strong>8.\u00a0<\/strong><span>(TCO 1) Activity-based costing information<\/span>\u00a0(Points : 3)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>should be used when services place similar demands on resources.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>usually results in peanut-butter costing.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>will yield inaccurate cost numbers when products are similar.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>may assist in improving product design and efficiency.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table width=\"100%\">\n<tbody>\n<tr>\n<td>\n<table>\n<tbody>\n<tr>\n<td><span>Question 9.<\/span>\u00a0<strong>9.\u00a0<\/strong><span>(TCO 1) One department indirect-cost rate is sufficient when<\/span>\u00a0(Points : 3)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>activities relate to more than one level of the cost hierarchy<\/span>.<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>product costs are significantly cross-subsidized.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>the same allocation base is appropriate for all departmental activities.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>it is a service department.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table width=\"100%\">\n<tbody>\n<tr>\n<td>\n<table>\n<tbody>\n<tr>\n<td><span>Question 10.<\/span>\u00a0<strong>10.\u00a0<\/strong><span>(TCO 1) Rumpole Company produces a special spray nozzle.\u00a0 The budgeted indirect total cost of inserting the spray nozzle is $100,000.\u00a0 The budgeted number of nozzles to be inserted is 25,000.\u00a0 What is the budgeted indirect cost allocation rate for this activity?<\/span>\u00a0(Points : 3)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>$2.50<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>$2.00<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>$3.00<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span>$4.00<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>1.\u00a0(TCO 1)\u00a0The average cost data are for In-Sync Fixtures Company&#8217;s (a retailer) only two product lines, Marblette and Italian Marble. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Marblette\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Italian Marble\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0 \u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Purchase volume\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0 20,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,000\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Purchase cost per unit\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $50\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $250\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Shipments received\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 12\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a012\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Hours used per shipment\u00a0*\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 5\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 *\u00a0These data were accumulated 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