Question 1 2 Points Janitors salaries costs that were incurred in a company's production factory should be classified as salaries expense. A True B FalseAs soon as products are completed. their product costs are transferred from Raw Materials Inventory to Finished-Goods Inventory. Quem Metalica Companv applies overhead based on machine hours. At the beginning of 20x1. the companv estimated that manufacturing overhead would be $450,000. and machine hours would total 30.000. By 20x1 yearend. actual overhead totaled $420,000. and actual machine hours were 25.000. On the basis of this information. the 20x1 predetermined overhead rate was: $18 per machine hour. $14 per machine hour. $28 per machine hour. $16.8 per machine hour. $15 per machine hour. Question 4 2 Points Osgood Company, which applies overhead at the rate of 170% of direct material cost, began work on job no. 101 during June. The job was completed in July and sold during August, having accumulated direct material and labor charges of $32,000 and $19,000, respectively. On the basis of this information, the total overhead applied to job no. 101 amounted to: A $0. B $32,300. $83,300. D $54,400. E $86,700.mm The controller forjack's Rabbits, Inc., estimates that the company's fixed overhead is $150000 per year. He also has determined that the variable overhead is approximately $020 per rabbit raised and sold) Since the company has a single product, overhead is applied on the basis of output units, or in other words. rabbits raised and sold. what is the predetermined overhead rate per rabbit if the output estimate or prediction is 150000 rabbits? Question 6 2 Points Many traditional costing systems: use a host of different cost drivers (e.g., number of production setups, inspection hours, orders processed) to improve A the accuracy of product costing. B produce results far superior to those achieved with activity-based costing. trace manufacturing overhead to individual activities and require the development of numerous activity-costing rates. D combine widely varying elements of overhead into a single cost pool. Question 7 2 Points Activity Based-costing systems are structured on multiple, volume-based cost drivers. A True B FalseQuestion 8 2 Points Which of the following is least likely to be classified as a facility-level activity in an activity-based costing system? A Production setup. B Plant management salaries. Plant maintenance. D Property taxes.Question 9 4 Points Barnett Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below. Activity Cost Cost Driver Material handling $ 285,000 Number of parts Material insertion 2,850,000 Number of parts Automated machinery 1,328,000 Machine hours Finishing 247,200 Direct labor hours Packaging 247,200 Orders shipped Total $ 4,957,400 The following information pertains to the three product lines for next year:Economy Standard Deluxe Units to be produced 11,200 6,200 3,200 Orders to be shipped 1,120 620 320 Number of parts per unit 10 15 25 Machine hours per unit 2 4 6 Labor hours per unit 3 3 3 Under Barnett's activity-based costing system, what is the per-unit overhead cost of Deluxe? A None of the answers is correct. B $419. $267. D $277