Acct 349 - Week 1 Quiz.docx - Question 1 6 6 pts(TCO 10 In...

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Question 16 / 6 pts(TCO 10) In selecting a cost allocation base for variable overhead, what criteria for the base is preferred?Ease of acquiring reliable information for accurate allocationsCorrect!A cause-and-effect relationship between the cost and the activity levelA single base that will simplify the allocation processOne that has been used in the past
See Chapter 8.Question 26 / 6 pts(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) $ 60Fixed overhead (5 hours at $15 per direct manufacturing labor hour,based on capacity of 200,000 direct manufacturing labor hours per month) 75Total overhead per switch$ 135The following information is available for the month of December:46,000 switches were produced, although 40,000 switches were scheduled to be produced.

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