Question 41

Lake Appliance produces washers and dryers in an assembly-line process. Labor costs incurred during a recent period were: corporate executives, $500,000; assembly-line workers, $180,000; security guards, $45,000; and plant supervisor, $110,000. The total of Lake's direct labor cost was:

Select one:

a. $110,000

b. $180,000

c. $155,000

d. $235,000

e. $735,000

Question 42

Which of the following employees would not be classified as indirect labor?

Select one:

a. Plant Custodian

b. Salesperson

c. Assembler of wooden furniture

d. Plant security guard

e. Choices "B" and "C"

Question 43

A standard cost:

Select one:

a. is the "true" cost of a unit of production.

b. is a budget for the production of one unit of a product or service.

c. can be useful in calculating equivalent units.

d. is normally the average cost within an industry.

e. is almost always the actual cost from previous years.

Question 44

Which of the following correctly lists all the information needed to calculate a labor rate variance?

Select one:

a. Standard labor rate and actual hours worked.

b. Actual hours worked and actual units produced.

c. Standard labor rate, actual labor rate, and actual units produced.

d. Actual labor rate and actual hours worked.

e. Actual labor rate, standard labor rate, and actual hours worked.

Question 45

Which of the following variances are most similar with respect to the manner in which they are calculated?

Select one:

a. Labor rate variance and labor efficiency variance.

b. Material price variance and material quantity variance.

c. Material price variance, material quantity variance, and total material variance.

d. Material price variance and labor efficiency variance.

e. Material quantity variance and labor efficiency variance.

Question 46.

Variances are computed by taking the difference between which of the following?

Select one:

a. Product cost and period cost.

b. Actual cost and differential cost.

c. Price factors and rate factors.

d. Actual cost and standard cost.

e. Product cost and standard cost.

Question 47

Consider the following information: Direct material purchased and used, 80,000 gallons Standard quantity of direct material allowed for May production, 76,000 gallons Actual cost of direct materials purchased and used, $176,000 Unfavorable direct-material quantity variance, $9,400 The direct-material price variance is:

Select one:

a. $11,400F.

b. $11,400U.

c. $12,000F.

d. $12,000U.

e. None of these.

Question 48

Dunwoody Corporation has two service departments (Maintenance and Human Resources) and three production departments (Machining, Assembly, and Finishing). The two service departments service the production departments as well as each other, and studies have shown that Maintenance provides the greater amount of service. On the basis of this information, which of the following cost allocations would likely occur under the step-down method?

Select one:

a. Machining cost would be allocated to Assembly.

b. Maintenance cost would be allocated to Finishing.

c. Maintenance cost would be allocated to Human Resources.

d. Human Resources cost would be allocated to Maintenance.

e. Allocations "B" and "C" above.

Question 49

Which of the following methods ignores the fact that some service departments provide service to other service departments?

Select one:

a. Direct method.

b. Indirect method.

c. Step-down method.

d. Reciprocal method.

e. Dual-cost allocation method.

Question 50

The point in a joint production process where each individual product becomes separately identifiable is commonly called the:

Select one:

a. decision point.

b. separation point.

c. individual product point.

d. split-off point.

e. joint product point.