1 - 1 Question(TCO 10 In selecting a cost allocation base...

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1 .   Question : ( TCO 10 ) In selecting a cost allocation base for variable overhead , what criteria for the base is preferred ?
 Student Answer : Ease of acquiring reliable information for accurate allocations
 A cause - and - effect relationship between the cost and the activity level
 A single base that will simplify the allocation process
 One that has been used in the past
Question 2 .   Questio n : ( TCO 10 ) Sebastian Company , which manufactures electrical switches , uses a standard cost system and carries all inventories at standard . The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below : Variable overhead ( 5 hours at $ 12 per direct manufacturing labor hour ) $ Fixed overhead ( 5 hours at $ 15 per direct manufacturing labor hour , based on capacity of 200,000 direct manufacturing labor hours per month ) Total overhead per switch $ 1 The following information is available for the month of December :  46,000 switches were produced , although 40,000 switches were scheduled to be produced .  225,000 direct manufacturing labor hours were worked at a total cost of $ 5,625,000 .  Variable manufacturing overhead costs were $ 2,750,000 .  Fixed manufacturing overhead costs were $ 3,050,000 . The variable manufacturing overhead efficiency variance for December was
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Question 3 .   Questio n : ( TCO 10 ) Sebastian Company , which manufactures electrical switches , uses a standard cost system and carries all inventories at standard . The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below : Variable overhead ( 5 hours at $ 12 per direct manufacturing labor hour ) $ Fixed overhead ( 5 hours at $ 15 per direct manufacturing labor hour , based on capacity of 200,000 direct manufacturing labor hours per month ) Total overhead per switch $ 1 The following information is available for the month of December :  46,000 switches were produced , although 40,000 switches were scheduled to be produced .  225,000 direct manufacturing labor hours were worked at a total cost of $ 5,625,000 .  Variable manufacturing overhead costs were $ 2,750,000 .  Fixed manufacturing overhead costs were $ 3,050,000 . What amount should be credited to the Allocated Manufacturing Overhead Control account for the month of December ?
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Question 4 .   Questio n : ( TCO 10 ) Sebastian Company , which manufactures electrical switches , uses a standard cost system and carries all inventories at standard . The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below : Variable overhead ( 5 hours at $ 12 per direct manufacturing labor hour ) $ Fixed overhead ( 5 hours at $ 15 per direct manufacturing labor hour , based on capacity of 200,000 direct manufacturing labor hours per month ) Total overhead per switch $ 1 The following information is available for the month of December :  46,000 switches were produced , although 40,000 switches were scheduled to be produced .  225,000 direct manufacturing labor hours were worked at a total cost of $ 5,625,000 .  Variable manufacturing overhead costs were $ 2,750,000 .  Fixed manufacturing overhead costs were $ 3,050,000 . Under the 2 - variance method , the flexible - budget variance for December was
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Question 5 .   Question : ( TCO 10 ) Budgeted overhead costs rates can be expressed as an amount per unit of output or per unit of input . Student Answer :
 True
 False
1. Question : (TCO 10) In selecting a cost allocation base for variable overhead, what criteria for the base is preferred? Student Answer: Ease of acquiring reliable information for accurate allocations A cause-and-effect relationship between the cost and the activity level A single base that will simplify the allocation process One that has been used in the past
Instructor Explanation: See Chapter 8. Points Received: 6 of 6 Comments: Question 2 . Questio n : (TCO 10) Sebastian Company, which manufactures electrical switches, uses a standard cost system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below: Variable overhead (5 hours at $12 per direct manufacturing labor hour) Fixed overhead (5 hours at $15 per direct manufacturing labor hour, based on capacity of 200,000 direct manufacturing labor hours per month) Total overhead per switch $ 1 The following information is available for the month of December: 46,000 switches were produced, although 40,000 switches were scheduled to be produced. 225,000 direct manufacturing labor hours were worked at a total cost of $5,625,000. Variable manufacturing overhead costs were $2,750,000. Fixed manufacturing overhead costs were $3,050,000. The variable manufacturing overhead efficiency variance for December was $
$60,000 F Instructor Explanation: Standard 46,000 switches x 5 DLH/switch = 230,000 Actual DLH 225,000 5,000 x $12 = $60,000 F Points Received: 6 of 6 Comments: Question 3 . Questio n : (TCO 10) Sebastian Company, which manufactures electrical switches, uses a standard cost system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below: Variable overhead (5 hours at $12 per direct manufacturing labor hour) Fixed overhead (5 hours at $15 per direct manufacturing labor hour, based on capacity of 200,000 direct manufacturing labor hours per month) Total overhead per switch $ 1 The following information is available for the month of December: $

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