Question
1. Which of the following items is required for cost assignment to product i under Duration-Based Costing (DBC)? a.The standard capacity for product i b.The
1. Which of the following items is required for cost assignment to product i under Duration-Based Costing (DBC)?
a.The standard capacity for product i
b.The total time for all secondary production activities of product i
c.The overhead cost per unit of product i
d.The cycle time for each product i
2. The method that first traces costs to a department and then to products is called:
a.indirect costing
b.direct costing
c.unit-based costing
d.absorption costing
3. The Manoli Company has collected the following data for use in calculating product costs: Activity Data: (expected and actual)
Rug Cleaners | Sweepers | Total | |
Units Produced | 50,000 | 250,000 | 300,000 |
Prime Costs | $200,000 | $750,000 | $950,000 |
Direct Labor Hours | 10,000 | 40,000 | 50,000 |
Machine Hours | 20,000 | 10,000 | 30,000 |
Number of Setups | 25 | 75 | 100 |
Inspection Hours | 1200 | 2,800 | 4,000 |
Number of Moves | 140 | 210 | 350 |
Departmental Data: (expected and actual)
Molding | Assembly | Total | |
Direct Labor Hours | |||
Rug Cleaners | 5,000 | 5,000 | 10,000 |
Sweepers | 5,000 | 35,000 | 40,000 |
Total | 10,000 | 40,000 | 50,000 |
Machine Hours | |||
Rug Cleaners | 17,000 | 3,000 | 20,000 |
Sweepers | 3,000 | 7,000 | 10,000 |
Total | 20,000 | 10,000 | 30,000 |
Overhead Costs | |||
Machining | $120,000 | $30,000 | $150,000 |
Moving Materials | 40,000 | 30,000 | 70,000 |
Setting Up | 70,000 | 10,000 | 80,000 |
Inspecting Products | 20,000 | 30,000 | 50,000 |
Total | $250,000 | $100,000 | $350,000 |
What is the unit product cost for rug cleaners if a plantwide rate is used based on direct labor hours?
a.$11.00
b.$4.12
c.$4.00
d.$5.40
4. Which of the following costing systems assigns actual costs of materials to inventory?
a.actual costing system
b.standard costing system
c.normal costing system
d.both "actual costing system" and "normal costing system"
5. A normal costing system records which costs in work in process?
a.applied direct materials, applied direct labor, applied manufacturing overhead
b.actual direct materials, actual direct labor, actual manufacturing overhead
c.actual materials and labor and applied manufacturing overhead
d.applied materials and labor and actual manufacturing overhead
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