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Overhead is applied to jobs at a rate of 150% of direct labor costs. Job # 100 required $500 in direct labor costs. The job was initially budgeted to require $550 in direct labor costs. Overhead applied to # 100 during the period amounted to:
Select one:
a. $550
b. $750
c. $825
d. some other amount.
Question 2
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Which of the following is an example of a direct material cost?
Select one:
a. glue and tape, not traceable
b. plastic part in the product, easy to track
c. supervisors on the production line
d. boxes used to ship the product that are not tracked
Question 3
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Which of the following indicates that a company may benefit from an Activity-Based Costing system?
Select one:
a. Standard high-volume goods and services show significant profits.
b. Goods and services are complex and may require many different processes or inputs
c. The company loses relatively high priced bids.
d. Indirect costs are insignificant in proportion to direct costs.
Question 4
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In activity-based costing, only one cost driver should be used in applying overheaD.
Select one:
a. True
b. False
Question 5
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Activity-based costing is most applicable where
Select one:
a. product lines are similar in volume and manufacturing complexity
b. overhead costs constitute a significant portion of total costs
c. the manufacturing process has been stable
d. production managers use data provided by the existing system
Question 6
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All of the following are advantages of developing a predetermined overhead application rate except:
Select one:
a. Short run fluctuations in volume of output are normalized
b. Actual overhead will
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Overhead is applied to jobs at a rate of 150% of direct labor costs. Job # 100 required $500 in direct labor costs. The job was initially budgeted to require $550 in direct labor costs. Overhead applied to # 100 during the period amounted to:
Select one:
a. $550
b. $750
c. $825
d. some other amount.
Question 2
Not yet answered
Marked out of 1.00
Flag question
Question text
Which of the following is an example of a direct material cost?
Select one:
a. glue and tape, not traceable
b. plastic part in the product, easy to track
c. supervisors on the production line
d. boxes used to ship the product that are not tracked
Question 3
Not yet answered
Marked out of 1.00
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Question text
Which of the following indicates that a company may benefit from an Activity-Based Costing system?
Select one:
a. Standard high-volume goods and services show significant profits.
b. Goods and services are complex and may require many different processes or inputs
c. The company loses relatively high priced bids.
d. Indirect costs are insignificant in proportion to direct costs.
Question 4
Not yet answered
Marked out of 1.00
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Question text
In activity-based costing, only one cost driver should be used in applying overheaD.
Select one:
a. True
b. False
Question 5
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Question text
Activity-based costing is most applicable where
Select one:
a. product lines are similar in volume and manufacturing complexity
b. overhead costs constitute a significant portion of total costs
c. the manufacturing process has been stable
d. production managers use data provided by the existing system
Question 6
Not yet answered
Marked out of 1.00
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Question text
All of the following are advantages of developing a predetermined overhead application rate except:
Select one:
a. Short run fluctuations in volume of output are normalized
b. Actual overhead will