121_Ch4_Quiz - Chapter 4 quiz for your own use TRUE/FALSE...

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TRUE/FALSE Answers on following pages 1. Direct costs are allocated to the cost object using a cost-allocation method. 2. Quality control costs may be a direct cost of the Manufacturing Department, but an indirect cost of an individual job. 4. The cost driver of an indirect cost is often used as the cost-allocation base. 6. Job costing is commonly used to estimate costs in beverage production. 7. In a job-costing system the cost object is an individual unit, batch, or lot of a distinct product or service. 12. If indirect cost rates were based on actual short-term usage, periods of lower demand would result in higher costs per unit. 13. In job costing, only direct costs are used to determine the cost of a job. 14. Indirect manufacturing costs should be allocated equally to each job. 15. Each cost pool may have multiple cost allocation bases. THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 116 THROUGH 118. Sunni Company manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $15 per direct labor-hour. The following data are obtained from the accounting records for June 20x2: Direct materials $280,000 Direct labor (7,000 hours @ $11/hour) $ 77,000 Indirect labor $ 20,000 Plant facility rent $ 60,000 Depreciation on plant machinery and equipment $ 30,000 Sales commissions $ 40,000 Administrative expenses $ 50,000 116. The actual amount of manufacturing overhead costs incurred in June 20x2 total a. $557,000. b. $200,000. c. $110,000. d. $ 80,000 117. The amount of manufacturing overhead allocated to all jobs during June 20x2 totals a. $77,000 b. $105,000. c.
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This note was uploaded on 04/29/2011 for the course ACCT 3001 taught by Professor Erickson during the Spring '10 term at University of Minnesota Duluth.

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121_Ch4_Quiz - Chapter 4 quiz for your own use TRUE/FALSE...

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