Big Quiz

The appeal of using multiple departmental overhead rates is that they presumably provide a more accurate accounting of the costs caused by jobs.

true

If 4,750 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

1

The incremental manufacturing cost that the company will incur if it increases production from 6,500 to 6,501 units is closest to:

10

During the month of May, direct labor cost totaled $11,720 and direct labor cost was 40% of prime cost. If total manufacturing costs during May were $79,100, the manufacturing overhead was:

11

The gross margin for October is:

12

If the selling price is $20.90 per unit, the contribution margin per unit sold is closest to:

13

What is the total amount of the costs listed above that are NOT direct costs of the Northridge Store?

14

What is the plantwide predetermined overhead rate

14 quiz

Gilchrist Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine-hours for the upcoming year at 28,100 machine-hours. The estimated variable manufacturing overhead was $4.47 per machine-hour and the estimated total fixed manufacturing overhead was $789,048. The predetermined overhead rate for the recently completed year was closest to:

15

Assume that Job X used 55 direct labor-hours. How much manufacturing overhead would be applied to Job X?

15 quiz

Longobardi Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the labor-hours for the upcoming year at 39,500 labor-hours. The estimated variable manufacturing overhead was $6.58 per labor-hour and the estimated total fixed manufacturing overhead was $972,095. The actual labor-hours for the year turned out to be 37,000 labor-hours. The predetermined overhead rate for the recently completed year was closest to:

16

Assume (1) actual machine-hours worked during the period of 54,000 hours, (2) manufacturing overhead applied to production during the period of $432,000, (3) estimated fixed manufacturing overhead of $326,100, and (4) estimated variable manufacturing overhead cost per machine-hour of $2.00. The estimated amount of the allocation base (machine-hours) is closest to:

16 quiz

Brothern Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the most recently completed year appear below:

17

Assume (1) a company's plantwide predetermined overhead rate is $13.00 per direct labor-hour, and (2) its job cost sheet for Job X shows that this job used 18 direct labor-hours and incurred direct materials and direct labor charges of $500 and $350, respectively. If Job X contains 40 units, then its unit product cost is closest to:

17 quiz

The amount of overhead applied in the Customizing Department to Job T138 is closest to: (Round your intermediate calculations to 2 decimal places.)

18

The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $21 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 910 would be:

19

How much manufacturing overhead is applied from the Machining Department to Job Y?

19 quiz

If 9,200 units are produced, the total amount of manufacturing overhead cost is closest to:

2

The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $2,091. A total of 39 direct labor-hours and 176 machine-hours were worked on the job. The direct labor wage rate is $18 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $23 per machine-hour. The total cost for the job on its job cost sheet would be:

20

Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data:

21

The unit product cost for Job P951 is closest to: (Round your intermediate calculations to 2 decimal places.)

22

The total job cost for Job T687 is closest to:

23

If the company marks up its unit product costs by 40% then the selling price for a unit in Job T687 is closest to: (Round your intermediate calculations to 2 decimal places.)

24

If the company marks up its unit product costs by 20% then the selling price for a unit in Job X455 is closest to: (Round your intermediate calculations to 2 decimal places.)

25

If the company marks up its manufacturing costs by 20% then the selling price for Job A319 would be closest to: (Round your intermediate calculations to 2 decimal places.)

26

The estimated total manufacturing overhead for the Machining Department is closest to:

27

What is the total of the product costs above?

3

If 4,000 units are sold, the total variable cost is closest to:

4

If the selling price is $28.00 per unit, the contribution margin per unit sold is closest to:

5

If 7,000 units are sold, the total variable cost is closest to:

6

At an activity level of 8,900 machine-hours in a month, Falks Corporation's total variable production engineering cost is $760,060 and its total fixed production engineering cost is $152,880. What would be the total production engineering cost per machine-hour, both fixed and variable, at an activity level of 9,100 machine-hours in a month? Assume that this level of activity is within the relevant range. (Round intermediate calculations to 2 decimal places.)

7

The contribution margin for Sam's Bookstore for the first quarter is:

8

Conversion costs during the month totaled:

9

Which of the following statements is false? Multiple Choice Manufacturing overhead may include some variable costs. Administrative expenses may include some variable costs. Incorrect A contribution format income statement may subtract some variable expenses from the contribution margin to derive net operating income. Correct Selling expenses may include some variable costs.

A contribution format income statement may subtract some variable expenses from the contribution margin to derive net operating income. Correct

During May, $59,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 310 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $7,100 of direct materials cost. The Corporation incurred $42,150 of actual manufacturing overhead cost during the month and applied $39,900 in manufacturing overhead cost. The actual direct labor-hours worked during May totaled:

Ch 2 Q 9

The raw materials purchased during May totaled:

Ch 3 Q 3

Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. The cost of goods manufactured for July is:

Ch 3 Q 8

If the company allocates all of its overhead based on direct labor-hours, the overhead assigned to each unit of Product H2 would be closest to:

Ch 4 Q 1

The predetermined overhead rate (i.e., activity rate) for Activity 2 under the activity-based costing system is closest to:

Ch 4 Q 7

If the materials handling cost is allocated on the basis of material moves, the total materials handling cost allocated to the modular homes is closest to:

Ch 4 Q 8

The direct labor rate is $45.10 per DLH. The direct materials cost per unit is $211.60 for Product W2 and $148.30 for Product P8. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product W2 would be closest to:

Ch 4 Q 9

The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a:

Ch3 Q2

The manufacturing overhead applied was:

Ch3 Q6

Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of direct materials used for the year?

Ch3 Q8

The activity rate for the Order Size activity cost pool under activity-based costing is closest to:

Ch4 Q 10

The activity rate for the Order Size activity cost pool under activity-based costing is closest to:

Ch4 Q4

Which of the following statements is false? Multiple Choice Cost structure refers to a company's relative proportion of product and period costs. Correct Cost behavior refers to how a cost reacts to changes in the level of activity. An activity base is a measure of whatever causes the incurrence of a variable cost. An activity base is sometimes referred to as a cost driver. Incorrect

Cost structure refers to a company's relative proportion of product and period costs.

A decrease in production will ordinarily result in a decrease in fixed production costs per unit.

false

A job cost sheet is used to record how much a customer pays for the job once the job is completed.

false

Indirect costs, such as manufacturing overhead, are variable costs.

false

Most companies use the contribution approach in preparing financial statements for external reporting purposes.

false

Actual overhead costs are not assigned to jobs in a job costing system.

true

Advertising is not considered a product cost even if it promotes a specific product.

true

The formula for computing the predetermined overhead rate is:Predetermined overhead rate = Estimated total amount of the allocation base ÷ Estimated total manufacturing overhead cost Group starts

true