Which of the following statements about actual costing is true?
Manufacturing costs of a job are available earlier under actual costing.
Corrective actions can be implemented sooner under actual costing.
Actual costing uses budgeted indirect-cost rates calculated annually.
Actual costing uses actual indirect-cost rates calculated annually.
15. When a normal costing system is used, clients using proportionately more full-time
employees than trainees will ________.
Which of the following is true of the Work-in-Process Control account?
Luke employs 20 professional cleaners. Budgeted costs total $1,800,000 of which $1,550,000
is direct costs. Budgeted indirect costs are $750,000 and actual indirect costs were $795,800.
Budgeted professional labor-hours are 1,000,000 and actual hours were 1,218,000. What is
the budgeted direct cost-allocation rate?
18. Tiscara Company manufactures insulation 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 2014:
Direct labor (3,500 hours @ $11/hour)
Plant facility rent
Depreciation on plant machinery and equipment
The actual amount of manufacturing overhead costs incurred in June 2014 totals