2010-11-28_105717_bittahquiz_3

2010-11-28_105717_bittahquiz_3 - Incremental analysis...

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Incremental analysis involves calculating the difference in revenue and difference in costs between alternatives. (Points: 5) True False 2. Costs that do not increase or decrease due to a special order are never considered incremental costs for the special order decision. (Points: 5) True False 3. Job-order costing can be used by service companies. (Points: 5) True False 4. When work is completed on a job, costs for the completed job are found in which of the following accounts? (Points: 5) Raw Materials Inventory Work in Process Inventory Finished Goods Inventory Cost of Goods Sold 5. Why is overhead applied using a predetermined overhead rate? (Points: 5) The actual amount of overhead is not known until yearend and the company desires timely cost information. The company desires to know the actual job costs during the year. A company is unable to estimate its expected costs for the year. Overhead amounts cannot be accurately determined since they include both fixed and variable components. 6. Mattling Brothers uses a predetermined overhead rate of $6.00 per direct labor hour. Budgeted overhead was $720,000 and actual overhead incurred was $700,000. Actual direct labor hours worked were 125,000 hours. How many labor hours did Mattling plan to work when determining the overhead rate for the year? (Points: 5) 120,000 hours 116,667 hours 20,833 hours Cannot be determined from the information given. 7. Just-in-time (JIT) systems were first used in (Points: 5) England. the United States. Japan . Germany. 8. If a company has zero beginning inventory and zero ending inventory (is completely just-in-time), then which of the following is true? (Points: 5) Cost of goods sold will equal cost of goods manufactured Cost of goods sold will be zero Cost of goods manufactured will be zero All of the above 9. Total quality management (TQM) programs are also known as (Points: 5) just-in-time programs. activity-based allocation programs. critical path programs. continuous quality improvement programs. 10. MRC Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for July follows: How much is the predetermined overhead rate? (Points: 5) $61.06 $4.30 $63.36 $62.16 11. When partially completed units are converted to a comparable number of completed units, they are referred to as (Points: 5) converted units. split-off units. equivalent units . equitable units. 12. Which of the following amounts is not needed in order to calculate the cost per equivalent unit? (Points: 5) costs in beginning Work in Process inventory equivalent
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units in beginning inventory. units completed and transferred out of the department equivalent units in ending inventory 13. The ending Work in Process inventory in the mixing department contains 300 units that are 30% complete with respect to labor costs. How many equivalent units are in the ending inventory? (Points: 5) 300 70 210 90 14. For each period, the total cost that must be accounted for is the sum of (Points: 5)
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This note was uploaded on 03/15/2012 for the course ACC 250 250 taught by Professor Connie during the Spring '11 term at University of Phoenix.

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2010-11-28_105717_bittahquiz_3 - Incremental analysis...

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