Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.35. The traditional income statement[…]
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51. Which of the following is not an advantage typically associated with standard costs? a. Standard costs facilitate cash planning and inventory planning. b. Standard costs facilitate income determination and record keeping. c. Standard costs are equally applicable to companies operating in an automated environment as to companies where automation is not a major factor. d. Standard costs are fundamental to responsibility accounting.
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.51. Which of the following[…]
Read more67. In which of the following situations would a project be acceptable under the time-adjusted rate of return method? I. The time-adjusted rate of return is equal to the cost of capital. II. The time-adjusted rate of return is greater than the cost of capital. III. The time-adjusted rate of return is less than or equal to the cost of capital. a. Only I. b. Only III. c. Only II. d. Both I and II.
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.67. In which of the[…]
Read more4. Straight-line depreciation on a computer used in the marketing department of a manufacturing firm would be classified as a. a product cost that is fixed in terms of cost behavior. b. a period cost that is fixed in terms of cost behavior. c. an asset representing funds accumulated to replace the computer when it is retired. d. a liability representing the probably future outlay of funds to replace the computer when it is retired.
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.4. Straight-line depreciation on a[…]
Read more“20. Malcolm Company uses direct labor hours as a base for applying predetermined factory overhead to production jobs. On September 1, the estimates for the month were: Factory overhead $17,000 Direct labor hours 13,600 During September, the actual production figures were: Factory overhead $18,500 Direct labor hours 12,000 The cost records for September will show a. Overapplied overhead of $3,500 b. Underapplied overhead of $2,000 c. Overapplied overhead of $1,500 d. Underapplied overhead of $3,500”,”4Predetermined rate = Estimated MOH/ Estimated DLHPredetermined rate = 17,000 = $1.25/DLH 13,600Applied MOH = DLH x predetermined rateApplied MOH = 12,000 x 1.25 = $15,000Compare to $18,500: Underapplied by 3
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Read more5. Cobra Mining Company spent $200 million five years ago to develop underground mining and milling operations in a remote area of a western state. Metals prices have since declined precipitously and the company is considering abandoning the operation. The term that would best describe the $200 million expenditure as regards the abandonment decision is a. sunk cost. b. noncontrollable cost. c. differential cost. d. opportunity cost.
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Read more“21. The work in process account of a manufacturing firm shows a balance of $3,000 at the end of an accounting period. The job cost sheets of two uncompleted jobs show charges of $500 and $300 for materials used, and charges of $400 and $600 for direct labor used. From this information, it appears that the company is using a predetermined overhead rate, as a percentage of direct labor costs, of a. 83% b. 120% c. 40% d. 250%”,”2Total Cost for uncompleted Jobs = $3,000 – Cost of Raw Materials (800) – DL Cost (1000) = App. MOH 1,200Compare 1,200 to $1
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Read more“6. CF Company manufactures wooden rocking chairs. CF identified the following three material costs in its production process for July: $100,000 for springs for the rocking mechanism. Two springs at a cost of $10 each are used in each chair. $1,700 for glue used as needed from one gallon containers. $500 for stain used to touch up spots on the chairs. The total cost that should have been assigned to indirect material for July was a. $102,200 b. $500 c. $2,200 d. $1,700”
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Read more“22. For 19×4, Parsons Company incurred $250,000 in actual manufacturing overhead cost. The Manufacturing Overhead account showed that overhead was overapplied in the amount of $12,000 for the year. If the predetermined overhead rate was $8.00 per direct labor hour, how many hours were worked during the year? a. 31,250 hours b. 30,250 hours c. 32,750 hours d. 29,750 hours”,”3Number of hours worked during the year:Applied MOH = Actual MOH + Overapplied overhead = 250,000 + 12,000 = $262,000Actual Hrs = Applied MOH/ = 262,000 /= 32,750 Hrs. PredeterminedRate 8.0023.The overhead rate per hour:= Estimated MOH / Estimated activity base= (40,000+8,000+20,000)/16
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Read more“7. Fab Co. manufactures textiles. Among Fab’s 19×1 manufacturing costs were the following salaries and wages: Loom operators $120,000 Factory foremen 45,000 Machine mechanics 30,000 What was the amount of Fab’s 19×1 direct labor? a. $195,000 b. $165,000 c. $150,000 d. $120,000”
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.“7. Fab Co. manufactures textiles.[…]
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