1.

In a machine-intensive production environment, the most accurate cost driver of manufacturing overhead costs is usually ________.

Select one:

A. machine hours

B. direct labor costs

C. direct labor hours

D. direct materials used

2.

The Assembly Department of Interface, Inc., manufacturer of computers, had 4500 units of beginning inventory in September, and 8000 units were transferred to it from the Production Department. The Assembly Department completed 4000 units during the month and transferred them to the Packaging Department. The weighted-average method is used. Calculate the total number of units to account for by the Assembly Department.

Select one:

A. 8000 units

B. 12,500 units

C. 4500 units

D. 3500 units

3.

Unit product cost calculations using absorption costing do NOT include ________.

Select one:

A. fixed manufacturing overhead

B. variable manufacturing overhead

C. direct materials

D. variable selling and administrative costs

4.

The following information has been provided by Crosby Corporation:

Direct Labor	$6000
Direct Materials Used	3000
Direct Materials Purchased	9000
Cost of Goods Manufactured	13,000
Ending Work-in-Process Inventory	1400
Corporate Headquarters' Property taxes	900
Manufacturing Overhead Incurred	400

The beginning balance of Work-in-Process Inventory account was ________.

Select one:

A. $5000

B. $21,000

C. $4500

D. $9400

5.

Castillo Corporation, a manufacturer, reports costs for the year as follows:

Direct Materials Used	$735,000
Wages to Line Workers	510,000
Office Rent	26,000
Indirect Materials Used	700,000

How much is the total period costs for Castillo?

Select one:

A. $735,000

B. $510,000

C. $26,000

D. $700,000

6.

Managerial accounting includes the planning function. Which of the following items would be part of the planning function of a business's managerial accounting?

Select one:

A. monitoring operations to keep the company on track

B. comparing actual to expected results

C. monitoring and evaluating the results of operations

D. choosing goals and deciding how to achieve them

7.

Locklear, Inc. reports the following information for the year ended December 31:

Units sold	620	units
Sales price	$130	per unit
Direct materials	$28	per unit
Direct labor	$8	per unit
Variable manufacturing overhead	$13	per unit
Fixed manufacturing overhead	$12	per unit
Variable selling and administrative costs	$6	per unit
Fixed selling and administrative costs	$12,600	per year

The operating income calculated using variable costing and absorption costing amounted to $10,000 and $12,700, respectively. There were no beginning inventories. Determine the total fixed manufacturing overhead that will be expensed under absorption costing for the year.

Select one:

A. $30,380

B. $7440

C. $10,140

D. $24,800