1. Reade Ltd produces and sells calculators. During the year, the company produced 20,000 units and sold 15,000 units. The following information relates to the product.

Direct material per unit$35Direct labour per unit$20Variable manufacturing overhead per unit$10Total fixed manufacturing overheads$216,000Budgeted production for the year18,000Actual fixed manufacturing overheads$245,000

Compute the amount of fixed manufacturing overhead over/underapplied for the year.

Reade Ltd produces and sells calculators. During the year, the company produced 20,000 units and sold 15,000 units. The following information relates to the product.

Direct material per unit$35Direct labour per unit$20Variable manufacturing overhead per unit$10Total fixed manufacturing overheads$216,000Budgeted production for the year18,000Actual fixed manufacturing overheads$245,000

Compute the amount of fixed manufacturing overhead over/underapplied for the year.

$50,600 underapplied

$50,600 overapplied

$5,000 overapplied

$5,000 underapplied

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2. How would the Half-Way-Tree branch of Trans-Jamaica Computers Ltd be classified?

How would the Half-Way-Tree branch of Trans-Jamaica Computers Ltd be classified?

investment centre

revenue centre

cost centre

profit centre

3. Mosley Company's per-unit cost is the same at all levels of activity. The company's cost structure must be made up of only:

Mosley Company's per-unit cost is the same at all levels of activity. The company's cost structure must be made up of only:

mixed costs

fixed costs

stepped costs

variable costs

4. Managerial accounting places emphasis on

Managerial accounting places emphasis on

the firm's financial history

the conceptual framework of accounting

the accurate recording of all transactions

detailed segment reports about departments, products and customers

5. Why are accurate cost assignments important?

Why are accurate cost assignments important?

Accurate cost assignments can reduce erroneous decisions and bad evaluations.

Accurate cost assignments minimize income taxes paid by the firm.

Accurate cost assignments produce relevant financial statements.

Accurate cost assignments ensure the firm produces adequate net income in given accounting period

6. Which of the following best describes a period cost?

Which of the following best describes a period cost?

A cost that can be easily allocated to a particular period, without the need for arbitrary apportionment between periods.

A cost that is identified with a unit produced during the period, and is included in the value of inventory. The cost is treated as an expense for the period when the inventory is actually sold.

A cost that relates to a time period which is deducted as expenses for the period and is not included in the inventory valuation

A cost that is incurred regularly every period e.g. every month or quarter.

7. The Phone Store is an island-wide retailer of electronic equipment. Management is particularly interested in the Mid-Town Store, located in Crossroads, Jamaica. You are an accountant examining the costs in the store.

Which of the following statements is true?

The Phone Store is an island-wide retailer of electronic equipment. Management is particularly interested in the Mid-Town Store, located in Crossroads, Jamaica. You are an accountant examining the costs in the store.

Which of the following statements is true?

If the Mid-Town Store is the cost object, then the cost of the store manager is an indirect cost.

If the Mid-Town Store is the cost object, then the cost of air-conditioning the store is a direct cost.

If the Mid-Town Store is the cost object, then the cost of the merchandise in the store is an indirect cost.

If the Mid-Town Store is the cost object, then the cost of air-conditioning the store is an indirect cost.

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8. To whom should a cost management system provide information?

To whom should a cost management system provide information?

organizational managers, but not to staff personnel

only the accounting area of the organization

all functional areas of the organization

only the production area of the organization

9. What is the primary advantage of the high-low method of cost estimation over the least-squares regression method?

What is the primary advantage of the high-low method of cost estimation over the least-squares regression method?

ability to help in identifying outlier observations

use of identical fixed costs in all periods

reliance on mathematical criteria

limited data requirements

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10. The following information pertains to Lusaka Inc. for 2023:

Estimated total overhead costs for 2023$75,000Estimated direct labour hours for 202350,000Actual direct labour hours45,000Actual overheads costs$72,000

What is Lusaka's predetermined overhead rate for 2023?

The following information pertains to Lusaka Inc. for 2023:

Estimated total overhead costs for 2023$75,000Estimated direct labour hours for 202350,000Actual direct labour hours45,000Actual overheads costs$72,000

What is Lusaka's predetermined overhead rate for 2023?

$0.625 per direct labour hour

$0.67 per direct labour hour

$1.60 per direct labour hour

$1.50 per direct labour hour

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