ACC302Practice_Test2(Spring2005)

ACC302Practice_Test2(Spring2005) - Practice Test 2 Chapters...

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Unformatted text preview: Practice Test 2 Chapters 3, 4, 5, and 6 Choose the best answer. 1. All of the following are cost objects EXCEPT a. activities or processes. b. customers. c. outputs of processes. d. cost assignments. 2. Which one of the following items is typically an example of an indirect cost of a cost object? a. courier charges for shipment delivery b. manufacturing plant electricity c. direct manufacturing labor d. wood used for furniture manufacture 3. Which one of the following examples could be classified as a direct cost? a. The costs of an entire factory's electricity related to a product; the product line is the cost object. b. The printing costs incurred for payroll check processing; the payroll check processing is the cost object. c. The salary of a maintenance supervisor in the manufacturing plant; Product A is the cost object. d. The costs incurred for electricity in the office; Accounting department is the cost object. 4. Which of the following is NOT one of the reasons that companies use an annual time period to compute the budgeted indirect-cost rate? a. The shorter the time period, the greater the seasonal influence. b. The variable indirect-cost rate is too high. c. The budgeted quantity of the allocation base may fluctuate too much in periods shorter than one year. d. The benefits of shorter periods do not outweigh the costs. 5. What is the appropriate journal entry if direct materials of $50,000 and indirect materials of $3,000 were sent to the manufacturing plant floor? a. Work-in-process Inventory 50,000 Materials Inventory 50,000 b. Work-in-process Inventory 53,000 Materials Inventory 53,000 c. Manufacturing Overhead 3,000 Materials Inventory 50,000 Work-in-process Inventory 53,000 d. Work-in-process Inventory 50,000 Manufacturing Overhead 3,000 Materials Inventory 53,000 Use the information below to answer questions 6-7. Jim's Computer Products manufactures keyboards for computers. In June, the two production departments had budgeted allocation bases of 10,000 machine hours in Department 1 and 5,000 direct manufacturing labor hours in Department 2. The budgeted manufacturing overheads for the month were $34,500 and $37,500, respectively. For Job 501, the actual costs incurred in the two departments were as follows: Department 1 Department 2 Direct materials purchased on account $66,000 $106,500 Direct materials used 19,500 8,100 Direct manufacturing labor 31,500 32,100 Indirect manufacturing labor 6,600 5,400 Indirect materials used 4,500 2,850 Lease on equipment 9,750 2,250 Utilities 600 750 Job 501 incurred 1,000 machine hours in Department 1 and 300 manufacturing labor hours in Department 2. The company uses a budgeted departmental overhead rate for applying overhead to production....
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This note was uploaded on 02/20/2012 for the course ACCT 102 taught by Professor Lee during the Spring '08 term at Rider.

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ACC302Practice_Test2(Spring2005) - Practice Test 2 Chapters...

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