QUESTION 5

1. If the cost object is the product, from the choices given, the cost driver that would be the most accurate means of allocating the overhead costs for the Ordering and Receiving department is:

   		set-ups.
   		purchase orders.
   		machine hours.
   		machine set-ups.
   		None of the above

1 points

QUESTION 6

1. All of these are indirect costs except:

   		factory rent.
   		machinery maintenance costs.
   		raw materials.
   		supervisor wages.
   		None of the above

1 points

QUESTION 7

1. Which of these are possible cost drivers under Activity-Based Costing?

   		number of set ups of machinery
   		hours of storage of raw materials
   		number of deliveries
   		all of the above

1 points

QUESTION 8

1. If the overhead applied to a job is $600 and the overhead rate is $15 per direct labour hour how many direct labour hours were used for the job?

   		40 hours
   		900 hours
   		25 hours
   		30 hours