1. A company using activity-based overhead rates

Group of answer choices

will usually have higher budget variances than one using a single rate

will usually have higher volume variances than one using a single rate

cannot compute fixed and variable components of overhead cost

should have better information for planning and control than one using a single rate

2. The formula to calculate the predetermined factory overhead rate is:

Group of answer choices

estimated activity base/estimated total factory overhead costs

estimated labor costs/estimated total factory overhead costs

estimated total factory overhead costs/estimated labor costs

estimated total factory overhead costs/estimated activity base

3. What is the journal entry to record materials in the amount of $65,000 purchased on account?

Group of answer choices

Accounts Payable debit $65,000, Materials credit $65,000

Work in Process debit $65,000, Accounts Payable credit $65,000

Accounts payable debit $65,000, Work in Process credit $65,000

Materials debit $65,000, Accounts Payable credit $65,000

4. What is the journal entry used to record indirect labor used in production of $22,685?

Group of answer choices

Work in Process debit $22,685, Factory Overhead credit $22,685

Work in Process debit $22,685, Wages Payable credit $22,685

Factory Overhead debit $22,685, Work in Process credit $22,685

Work in Process debit $22,685, Raw Materials credit $22,685

Factory Overhead debit $22,685, Wages Payable credit $22,685

5. What is the journal entry used to record the completion of jobs in the amount of $14,685?

Group of answer choices

Work in Process debit $14,685, Finished Good credit $14,685

Finished Goods debit $14,685, Raw Materials credit $14,685

Work in Process debit $14,685, Wages Payable credit $14,685

Finished Goods debit $14,685, Work in Process credit $14,685

Work in Process debit $14,685, Materials credit $14,685

6. What is the journal entry used to record nonmanufacturing factory overhead costs incurred on account of $4,000?

Group of answer choices

Work in Process debit $4,000, Factory Overhead credit $4,000

Factory Overhead debit $4,000, Raw Materials credit $2,000, Wages Payable credit $2,000

Accounts Payable debit $4,000, Factory Overhead credit $4,000

Factory Overhead debit $4,000, Accounts Payable debit $4,000

Work in Process debit $4,000, Wages Payable credit $4,000

7. What is the journal entry used to record factory overhead applied in the amount of $7,200?

Group of answer choices

Raw Materials debit $7,200, Work in Process credit $7,200

Factory Overhead debit $7,200, Work in Process credit $7,200

Work in Process debit $7,200, Wages Payable credit $7,200

Factory Overhead debit $7,200, Work in Process credit $7,200

Work in Process debit $7,200, Factory Overhead credit $7,200

8. adott Manufacturing produces three products. Production and cost information show the following:

Model X Model Y Model ZTotal

Units produced 1,000 3,000 6,000 10,000

Direct labor hours 2,000 1,000 2,000 5,000

Number of inspections 20 030 50 100

Inspection costs totaled $100,000. Using ABC, inspections costs allocated to each unit of Model Y would be:

Group of answer choices

$ 6.67

$10.00

$20.00

$33.00

Some other number

9. Danner Company produces ships and tanks, and, incurs $1,600,000 in manufacturing overhead costs each month. The company has been allocating overhead to individual product lines based on direct labor hours.

Amount Total Estimated

Cost driver In Pool Activity

----------- -------- ---------

Direct labor hours $500,000 40,000

Number of setups 700,000 1,000

Number of tests 400,000 500

----------

Total overhead costs $1,600,000

==========

Two of Danner's manufactured product have the following characteristics:

Ships Tanks

--------- ---------

Direct labor hours 2,000 1,000

Number of setups 20 100

Number of tests 2 150

Using Danner Company information, determine overhead to be allocated to each product using direct labor hours as the lone cost driverplantwide method.

Group of answer choices

Ships $25,000, Tanks $12,500 respectively

Ships $37,500, Tanks $18,750 respectively

Ships $80,000, Tanks $40,000 respectively

Ships $120,000, Tanks $60,000 respectively

Some other number

10. Danner Company produces ships and tanks, and, incurs $1,600,000 in manufacturing overhead costs each month. The company has been allocating overhead to individual product lines based on direct labor hours.

Amount Total Estimated

Cost driver In Pool Activity

----------- -------- ---------

Direct labor hours $500,000 40,000

Number of setups 700,000 1,000

Number of tests 400,000 500

----------

Total overhead costs $1,600,000

==========

Two of Danner's manufactured product have the following characteristics:

Ships Tanks

--------- ---------

Direct labor hours 2,000 1,000

Number of setups 20 100

Number of tests 2 150

Using Danner Company information, determine overhead allocated to each SHIP (only) made using three cost drivers identifiedABC method.

Group of answer choices

Total Overhead Allocated = Direct Labor $12,500 + Setups $70,000 + Tests $120,000 = $202,500

Total Overhead Allocated = Direct Labor $25,000 + Setups $14,000 + Tests $1,600 = $40,600

Total Overhead Allocated = Direct Labor $37,500 + Setups $84,000 + Tests $121,600 = $202,500

Some other number