J U U Ucuy lace U MUIVIUud pruuUCIS. [Fact Pattern #1] A company has identified the following overhead costs and cost drivers for the coming year: Overhead Item Cost Driver Budgeted Cost Budgeted Activity Level Machine setup Number of setups $ 20,000 200 Inspection Number of inspections 130,000 6,500 Material handling Number of material 80,000 8,000 moves Engineering Engineering hours 50,000 1,000 Total $280.000 The following information was collected on three jobs that were completed during the year: Job 101 Job 102 Job 103 Direct materials $5,000 $12,000 $8,000 Direct labor $2,000 $2,000 $4,000 Units completed 100 50 200 Number of setups Number of inspections 10 30 Number of material moves 10 50 Engineering hours Budgeted direct labor cost was $100,000, and budgeted direct material cost was $280,000. 20 [14] (Refers to Fact Pattern 1) If the company uses activity-based costing, compute the cost of each unit of Job 102. A. $340 B. $392 C. $440 D. $520 [15] (Refers to Fact Pattern 1 ) If the company uses activity-based costing, how much overhead cost should be assigned to Job 101? A. $1,300 B. $2,000 C. $5,000 D. $5.600 2020 Gleim Publications Inc. Managerial Accountina: Job and Process C 3 [16] Which of the following items is not included in (charged to manufacturing overhead? A. Depreciation and supplies B. Costs of service departments C. Costs of marketing departments D. Costs of maintenance departments [17] Many companies recognize three major categories of costs of manufacturing a product These are direct materials, direct labor, and overhead. Which of the following is an overhead cost in the production of an automobile? A. The cost of small tools used in mounting tires on each automobile B. The cost of the tires on each automobile C. The cost of the laborers who place tires on each automobile. D. The delivery costs for the tires on each automobile. [18] Ajax Corporation transferred $72,000 of materials to its production department in February and incurred $37,000 of conversion costs ($22,000 of direct labor and $15,000 of overhead). At the beginning of the period, $14,000 of inventory (direct materials and conversion costs) was in process. At the end of the period, $18,000 of inventory was in process. What was the cost of goods manufactured? A. $105,000 B. $109,000 C. $123,000 D. $141,000 (19] Luna Co.'s year-end manufacturing costs were as follows: Direct materials and direct labor $500,000 Depreciation of manufacturing equipment Depreciation of factory building 40,000 Janitor's wages for cleaning factory premises 15,000 How much of these costs should be inventored for external reporting purposes? A. $625,000 B. $610,000 C. $585,000 D. $500,000 [20] Equivalent units of production are used in process accounting to A. Measure the efficiency of the production process. B. Establish standard costs. C. Provide a means of assigning cost to partially completed units. D. Allocate overhead to production Managerial Accountina: Job and Process C 4 2020 Gleim Publications Inc