Acctg 305 Fall 2010 Practice Test Ch4-5

Acctg 305 Fall 2010 Practice Test Ch4-5 - Acctg 305 Fall...

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Acctg 305 Fall 2010 Practice Test Chapters 4-5 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Which is NOT a characteristic of a functional-based costing system? a. It uses traditional product costing definitions. b. It uses unit-based activity drivers to assign overhead to products. c. It is cheaper than an activity-based costing system. d. It offers greater product costing accuracy than an activity-based costing system. ____ 2. Unit-based product costing uses which of the following procedures? a. Overhead costs are traced to departments, then costs are traced to products. b. Overhead costs are traced to activities, then costs are traced to products. c. Overhead costs are traced directly to products. d. All overhead costs are expensed as incurred. ____ 3. A predetermined overhead rate is calculated using which of the following formulas? a. Actual annual overhead / Budgeted annual driver level b. Budgeted annual overhead / Budgeted annual driver level c. Budgeted annual overhead / Actual annual driver level d. none of the above ____ 4. All of the following are nonunit-based activity drivers EXCEPT a. number of setups. b. number of direct labor hours. c. number of inspections. d. number of material moves. Figure 4-1 Adams Company predicted factory overhead for 2009 and 2010 would be $120,000 for each year. The predicted activity for 2009 and 2010 were 30,000 and 20,000 direct labor hours, respectively. Additional data are as follows: 2009 2010 Sales in units 25,000 25,000 Selling price per unit $20 $20 Direct materials and direct labor per unit $10 $10 The company assumes that the long-run normal production level is 20,000 direct labor hours per year. The actual factory overhead cost for the end of 2009 and 2010 was $120,000. Assume that it takes one direct labor hour to make one finished unit. 3/12/12 Page 1 of 22
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____ 5. Refer to Figure 4-1. When the annual estimated factory overhead rate is used, the gross profits for 2009 and 2010, respectively, are a. $150,000 and $150,000. b. $250,000 and $250,000. c. $150,000 and $110,000. d. $150,000 and $100,000. ____ 6. The following information is provided for the year: Actual direct labor hours worked 36,000 Budgeted overhead $300,000 Budgeted direct labor hours 30,000 Actual overhead costs incurred $360,000 If normal costing is used, the amount of overhead applied for the year is a. $299,880. b. $300,000. c. $380,000. d. $360,000. ____ 7. The following information is provided: Estimated manufacturing overhead $690,000 Estimated machine hours 46,000 Actual machine hours worked 50,000 Actual costs incurred: Indirect materials $170,000 Indirect labor 230,000 Utilities 120,000 Insurance 100,000 Rent 80,000 The amount of overapplied or underapplied overhead is a. $65,200 underapplied. b. $60,000 overapplied. c. $50,000 overapplied. d. $10,000 underapplied. 3/12/12 Page 2 of 22
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____ 8. The following information pertains to Black Corporation for 2010: Estimated total overhead costs for 2010 $37,500 Estimated direct labor costs for 2010 25,000 Actual direct labor costs 22,500 Actual overhead costs 36,000 Activity base Direct labor costs What is the predetermined overhead rate for Black Corporation for 2010? a.
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Acctg 305 Fall 2010 Practice Test Ch4-5 - Acctg 305 Fall...

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