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In: Accounting

In an activity-based costing system, the first step in assigning costs is to a. accumulate costs...

In an activity-based costing system, the first step in assigning costs is to

a.

accumulate costs for each activity.
b.

identify the appropriate activities for each function.
c.

separate nonvalue-adding activities from value-adding activities.
d.

analyze all nonvalue-adding activities to determine if they are necessary support areas.

Harrah Company provided the following information for the month of August:

               Beginning cash balance                         $ 70,000

               Cash receipts                                            460,000

               Cash disbursements                                 525,000

Harrah’s policy is to keep a minimum end of the month cash balance of $30,000. How much will Harrah’s need to borrow during August?

a.

$20,000
b.

$25,000
c.

$10,000
d.

$0

Bay Company had actual production of 220 units in the month of April. Budgeted standard fixed overhead costs were $20,000, based on normal capacity of 800 direct labor hours per month. The time standard was 4 direct labor hours per unit. The fixed overhead volume variance for April was

a.

$3,600 F
b.

$3,600 U
c.

$2,000 F
d.

$2,000 U

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Expert Solution

ekkarill92 answered 1 year ago
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