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Which of the following activity cost pools would most likely be allocated based on the number of production runs?

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 Which of the following activity cost pools would most likely be allocated based on the number of production runs?

Machinery set-up costs.
Raw materials warehousing costs.
Factory heating costs.
Factory janitorial costs.
Indirect labor costs.

 

9. A Production Cost Report summarizes all except:

The physical units of a department.
The equivalent units of a department.
The costs incurred during the period.
The costs assigned to both units completed and ending work-in-process inventories.
The budgeted labor and overhead application rates.

 

10. Which method is a method used to prepare the departmental production cost report when using a process cost system?

LIFO method.
FIFO method.
Weighted production method.
Production average method.
Throughput average method

 

11. Which of the following is an example of a high-value-added activity?

Shipping the customer’s order.
Scheduling the customer order for production.
Inspecting goods to ensure the right quantity is being shipped.
E-mailing a customer to assure that a complaint will be resolved expeditiously.

 

12. In regard to selling activities, which one of the following would be a cost driver for selling expense?

Number of invoices.
Number of sales calls.
Number of production runs.
Number of shipments.

 

13. The costs of operating a regional warehouse is an example of a:

Customer unit-level cost.
Customer batch-level cost.
Customer-sustaining cost.
Distribution-channel cost.

 

14. Which one of the following is a high value-added activity?

Set up.
Rework.
Repair.
Storage.
Processing.

 

15. ABC Company listed the following data for 2010:

Budgeted Factory Overhead

$1,044,000

Budgeted Direct Labor Hours

72,000

Budgeted Machine Hours

24,000

Actual Factory Overhead

1,037,400

Actual Direct Labor Hours

72,000

Actual Machine Hours

23,000

Round calculations to two significant digits.
Assuming ABC applied overhead based on machine hours, the company’s predetermined overhead rate for 2010 is:

$43.50 per machine hour.
$14.38 per machine hour.
$44.24 per machine hour.
$14.50 per machine hour.
$14.41 per machine hour.

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