ACCT Most Missed
Within the relevant range, variable costs can be expected to:
vary in total in direct proportion to changes in the activity level.
Sargent Corporation applies overhead cost to jobs on the basis of 70% of direct labor cost. If Job 210 shows $20,300 of manufacturing overhead cost applied, how much was the direct labor cost on the job?
$29,000 Manufacturing overhead applied = Predetermined overhead rate × Amount of the allocation base incurred $20,300 = 0.70 × Direct labor cost Direct labor cost = $20,300 ÷ 0.70 = $29,000
Job cost sheets contain entries for actual direct material, actual direct labor, and actual manufacturing overhead cost incurred in completing a job.
False
Property taxes on a company's factory building would be classified as a(n):
product cost
Cost of the old X-ray machine
sunk cost
Cost of electricity to run the x-ray machines
differential cost
Cost of the new color laser printer
differential cost
Cost of x- ray film used in the old machine
differential cost
The cost of maintaining the old machine
differential cost
The salary of the head of the Radiology Department
none
The salary of the head of the laboratory department
none
rent on the space occupied by radiology
none
Benefits from a new DNA analyzer
opportunity cost
