Question
26. A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would
26. A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 45,000. Actual manufacturing overhead costs incurred were $377,200 and actual direct labor hours were 46,000 what is the predetermined overhead rate per direct labor hour?
a. 8
b 8.20
c. 8.38
d 7.83
_______________________
32. Equivalent production units usually are determined for
a. direct materials and conversion costs
b. direct materials only
c. conversion costs only
d. direct materials and direct labor costs only
_______________________
34. Which of the following best describes the effect on direct labor when management adopts a just in time enviroment?
a. workers typically perform one fuction
b. the environment becomes more labor intensive
c. each employee runs a single machine
d. workers are often cross trained to perform more than one function
__________
37. Which of the following describes the behavior of the fixed cost per unit?
a. decreaes with increasing production
b. decreases with decreasing production
c. remains constant with changes in production
d. increases with increasing production
______________
38. Which of the following activity bases would be the most appropriate for food costs of a hospital?
a. Number of cooks scheduled to work
b. number of x-rays taken
c. number of patients who stay in the hospital
d. number of scheduled surgeries
_______________
39. Which of the following activity bases would be the most appropriate for gasoline costs of a delivery service such as USPS
a. number of trucks employed
b. number of miles driven
c. number of trucks in service
d. number of packages delivered
_________________
40. Costs that vary in total in direct proportion to changes in an activity level are called:
a. fixed costs
b. sunk costs
c. variable costs
d. differential costs
______________
41. Which of the following costs is a mixed cost?
a. Salary of a factory supervisor
b. electricity costs of $2 per kilowatt-hour
c. rental costs of 5000 per month plus .30 per machine hour of use
d. straight line depreciation on factory equipment
________________
42. Marcye Co. makes office furniture. During the most productive month 3500 desks were manufactured at a total cost of $84,400. In its slowest monthe the company made 1100 desks at the cost of $46000 using the high low method of cost estimation total fixed costs are?
a. 56000
b. 28400
c. 17600
d. cannot be determined form the data given
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