Reference no: EM132950343

Problem 1: The process of dividing a total cost into parts and assigning it to a cost object is known as

Option 1: divide and conquer.
Option 2: cost allocation.
Option 3: accurate costing.
Option 4: cost division.

Mickey & Co. expects overhead costs of $30,000 per month and direct production costs of $12 per unit. The estimated production activity for the 2009 accounting period is as follows:

Units Produced:
Quarter 1: 11,500
Quarter 2: 9,000
Quarter 3: 8,250
Quarter 4: 11,250

Problem 2: The predetermined overhead rate based on units produced is (rounded to the nearest penny)

Option 1: $1.33 per unit
Option 2: $0.75 per unit
Option 3: $21.00 per unit
Option 4: $9.00 per unit