1.

The following information relates to ABC Manufacturing Company for the month of June 2021.

Plant capacity 480 000 machine hours

Normal level of production 432 000 machine hours

Budgeted level of production 360 000 machine hours

Budgeted manufacturing overhead $2 160 000

Actual manufacturing overhead for the month of $175 000

Actual machine hours used for June 2021 35 000

What would be the amount of underapplied or overapplied overhead at the end of the month if overhead rates were calculated based on practical capacity, normal capacity and budgeted capacity respectively

Select one:

Neither under or over; $35 000 over; $17 500 under

$17 500 under; neither under or over; $35 000 over

Neither under or over; $17 500 under; $35 000 over

$17 500 under; $35 000 over; neither under or over

2.

The income of a company for a year on a variable costing basis is $132 000 and on an absorption costing basis is $100 000. Fixed costs per unit were the same in both the prior and current year ($2.50 per unit). What was the change in inventory over the year?

Select one:

Decrease of 12 000 units

Increase of 12 000 units

Increase of 12 800 units

Decease of 12 800 units

3.

Calculate the cost per unit for setup for one run of 4 000 units if setup of machine is $50 per hour and 20 hours are required to set up.

Select one:

$2.50 per unit

$0.65 per unit

$0.625 per unit

$4.00 per unit

4.

Which of the following are usually included in traditional cost systems?

I) Non-manufacturing costs are assigned to products

II) Manufacturing overhead is allocated using a production-volume-based cost driver

III) Non-manufacturing costs are assigned to products

Select one:

i and iii

ii and iii

iii

ii

5.

Widget Manufacturing requires 10,000 gadgets per year for production. The firm decides to order 250 gadgets at a time. The costs of ordering are $99 per order and carrying costs per gadget are $1.50. Annual carrying costs are:

Select one:

$375

$148.50

None of the given answer

$250