Job Order Costing
1. Malcolm Company uses a predetermined overhead rate based on direct labor hours to
apply manufacturing overhead to jobs.
On September 1, the estimates for the month were:
Direct labor hours.
1. Volume-based plant-wide rates produce inaccurate product cost when:
A) a large share of factory overhead cost is not volume-based.
B) firms produce a diverse mix of product.
C) different products consume different
CHAPTER 10: DETERMINING HOW COSTS BEHAVE
One assumption frequently made in cost behavior estimation is that changes in total
costs can be explained by changes in the level of a single activity.
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers
The left side of a T-account is always the:
Juan, the owner of Joe's Pizza Palace, has noticed that when he
increases the price of his pizzas by $2.00, the number of pizzas that he
sells drops by 20 percent. Juan has discovered:
the law of demand
the law of supply