Extra Multiple choice for Test 1

Extra Multiple - MC#1 Student 1 The three basic elements of manufacturing cost are direct materials direct labor and A cost of goods manufactured B

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MC #1 Student: ___________________________________________________________________________ 1. The three basic elements of manufacturing cost are direct materials, direct labor, and: A. cost of goods manufactured. B. cost of goods sold. C. work in process. D. manufacturing overhead. 2. Which terms below correctly describe the cost of the black paint used to paint the dots on a pair of dice? A. Choice A B. Choice B C. Choice C D. Choice D 3. Which two terms below describe the wages paid to security guards that monitor a factory 24 hours a day? A. variable cost and direct cost B. fixed cost and direct cost C. variable cost and indirect cost D. fixed cost and indirect cost 4. A lawnmower manufacturer computed a cost per unit of $53 by adding together last month's direct labor, direct materials, and manufacturing overhead and dividing that total by the 10,000 units produced last month. (There were no beginning or ending inventories.) If 9,000 units are going to be manufactured this month, we would expect that the: A. cost per unit will remain the same. B. cost per unit will decrease. C. direction of change in unit costs cannot be determined. D. cost per unit will increase.
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5. When applying manufacturing overhead to jobs, the formula to calculate the amount is as follows: A. Predetermined overhead rate divided by the actual manufacturing overhead incurred on the particular job. B. Predetermined overhead rate times the actual manufacturing overhead incurred on the particular job. C. Predetermined overhead rate divided by the actual units of allocation base charged to the particular job. D. Predetermined overhead rate times the actual units of allocation base charged to the particular job. 6. Which of the following situations always results in underapplied overhead? A. actual overhead is greater than applied overhead B. actual overhead is less than applied overhead C. estimated overhead is greater than actual overhead D. estimated overhead is less than actual overhead 7. Dagnon Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $299,130. At the end of the year, actual direct labor-hours for the year were 17,400 hours, manufacturing overhead for the year was overapplied by $13,850, and the actual
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This note was uploaded on 04/21/2011 for the course BUS 102 taught by Professor Timbianco during the Spring '08 term at Ivy Tech Community College.

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Extra Multiple - MC#1 Student 1 The three basic elements of manufacturing cost are direct materials direct labor and A cost of goods manufactured B

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