Managerial Accounting

1. Direct costs: A) are incurred to benefit a particular accounting period. B) are incurred due to a specific decision. G) can be easily traced to a particular cost object. D) are the variable costs of producing a product. 2. Which of the following would most likely NOT be included as manufacturing overhead in a furniture factory? A) The cost of the glue in a chair. -8) The amount paid to the individual who stains a chair. C) The workman's compensation insurance of the supervisor who oversees production. D) The factory utilities of the department in which production takes place. 3. Rotonga Manufacturing Company leases a vehicle to deliver its finished products to customers. Which of the following terms correctly describes the monthly lease payments made on the delivery vehicle? 4. The costs of direct materials are classified as: A) Choice A B) Choice B C) Choice C D) Choice D 5. Manufacturing overhead includes: A) all direct material, direct labor and administrative costs. B) all manufacturing costs except direct labor. Df all manufacturing costs except direct labor and direct materials. D) all selling and administrative costs. 6. Materials used in a factory that are not an integral part of the final product, such as cleaning supplies, should be classified as: A) drect materials. 8) a period cost. C) administrative expense. D) manufacturing overhead. 7. Opunui Corporation has two manufacturing departments-Molding and Finlishing. The compeny used the following data at the beginning of the year to calculate predetermined overhead rates: During the most recent month, the company started and completed two jobs-job A and Job M. There were no beginning inventories. Data conceming those two jobs foliow: Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 40k on manufacturing cost to establish selling prices. The calculated selling price for Job A is closest to: A) $51,970 B) $72,758 C) 580,034 D) $20,788 8) Lueckenthoff Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $497,000, variable manufacturing overhead of $2.40 per direct labor-hour, and 70,000 direct labor-hours. The company has provided the following data concerning Job T498 which was recently completed: The estimated total manufacturing overhead is closest to: A) $665,000 B) $497,002 C) 5497,000 D) $168,000 9. Opunui Corporation has two manufacturing departments-Molding and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: During the most recent month, the company started and completed two jobs-Job A and Job M. There were no beginning inventories. Data concerning those two jobs follow: Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. The total manufacturing cost assigned to Job M is closest to: A) 510,830 B) 57,400 C) $25,730 D) 57,500 10. Morataya Corporation has two manufacturing departments-Machining and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates: During the most recent month, the company started and completed two jobs JobB and Job G. There were no beginning inventories. Data concerning those two jobs follow: Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. That predetermined manufacturing overhead rate is closest to: A) $4.00 B) $7.50 C) 54.58= D) $6.54