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Product costing information is used by managers: a. to make decisions and strategy b. for planning and control c. for cost management *d. All of these answers are correct. __________ is the process of distributing indirect costs to products. *a. Cost allocation b. ob order costing c. Cost pooling d. Cost tracing A __________ links an indirect cost to a cost ob"ect. *a. cost#allocation base or cost dri$er b. cost pool c. cost assignment d. cost tracing A "ob that shows low profitability may be the result of: a. wasting direct materials b. inefficient labor c. underpricing the "ob *d. All of these answers are correct. 'f pre#determined o$erhead rates were calculated monthly rather than annually( then for the month of )ebruary with only 2* days: a. pre#determined o$erhead rates would be lower *b. pre#determined o$erhead rates would be higher c. there would be no effect on pre#determined o$erhead rates d. monthly output would be higher

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'n a "ob#costing system( a manufacturing firm typically uses a pre#determined o$erhead rate to estimate the __________ allocated to a "ob. a. direct materials b. direct labor *c. manufacturing o$erhead costs d. total costs A "ob#cost sheet details the: a. direct materials purchased and paid for

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direct labor costs incurred indirect labor costs incurred actual o$erhead costs incurred

All of the following are true of the -ork#in#Process Control account ./C.P0 that: *a. it tracks all direct material purchases b. the balance e1uals the sum of amounts from all in#process indi$idual "ob#cost records c. it is an asset account d. it tracks "ob costs from beginning through completion All of the following increase the -ork#in#Process Control account ./C.P0: a. allocated manufacturing o$erhead costs b. direct materials *c. actual plant insurance costs d. direct manufacturing labor All of the following are true of plant utility costs ./C.P0: a. the source document is the utility bill b. the cost increases the 4anufacturing 5$erhead account *c. the cost increases the -ork#in#Process Control account d. it is an indirect cost 0he ending balance in the )inished 6oods Control account represents the costs of all "obs that: a. ha$e not been completed *b. ha$e been completed but not sold c. ha$e been completed and sold to customers d. are reported on the income statement -hen the allocated amount of o$erhead costs are more than the actual amount( o$erhead costs ha$e been: a. 7oth underapplied and underallocated are correct. b. underapplied c. underallocated *d. o$erapplied 0he simplest approach to dealing with underallocated or o$erallocated o$erhead is the __________ approach. a. ad"usted allocation#rate b. proration c. write#off to cost of goods sold d. 7oth a and b are correct.

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8ara employs 2& professional cleaners. 7udgeted costs total 9233(333 of which 9&2&(333 are direct costs and 9!,&(333 are o$erhead costs. 7udgeted professional labor#hours are &33(333 and actual professional labor#hours were &3%(333. -hat is the pre#determined o$erhead rate per professional labor#hour: a. 91.*3 per hour b. 91.,*&, per hour *c. 93.,& per hour d. 91.3& per hour 9!,&(333 ; &33(333 < 9.,&

1& 0=. )5>>5-'?6 '?)5@4A0'5? APP>'.8 05 AB.80'5?8 1& A?C 1+: )or 23/&( 4arcotteDs Animal 8upply 4anufacturing uses machine#hours as the only o$erhead cost#allocation base. 0he accounting records contain the following information: 4anufacturing o$erhead costs 4achine#hours Estimated 9133(333 23(333 Actual 9123(333 2&(333

Bsing "ob order costing( the 23/& pre#determined manufacturing o$erhead rate is: a. 9%.33 per machine#hour b. 9%.*3 per machine#hour *c. 9&.33 per machine#hour d. 9+.33 per machine#hour 9133(333 ; 23(333 mh < 9& 1+. Bsing normal costing( the amount of manufacturing o$erhead costs allocated to "obs during 23/& is: a. 91&3(333 *b. 912&(333 c. 9123(333 d. 9133(333 2&(333 mh E 9&.33 per machine#hour < 912&(333

1,. oniDs Fitty 8upplies applies manufacturing o$erhead costs to products at a pre# determined manufacturing o$erhead rate of 9+3 per direct labor#hour. A retail outlet has re1uested a bid on an order of the 0oy 4ouse product. .stimates for this order include: Cirect materials 9%3(333G &33 direct labor#hours. .ach direct laborer is paid 923 per direct labor#hourG

.stimated total product costs for this order( using "ob order costing( e1ual: a. 92+(333 b. 9&3(333 *c. 9*3(333 d. ?one of these answers is correct. Cirect 4aterials 9%3(333 H Cirect >abor 913(333 I&33 E 923J H 45= 9!3(333 I&33 E 9+3J< 9*3(333

1*. B8. 0=. )5>>5-'?6 '?)5@4A0'5? )5@ AB.80'5?8 1* 0=@5B6= 23: 8unny Company manufactures pipes and applies manufacturing o$erhead costs to production at a pre#determined o$erhead rate of 91& per direct labor#hour. 0he following data are obtained from the accounting records for une 23/2: Cirect materials Cirect labor I,(333 hours K 911;hourJ 'ndirect labor Plant facility rent Cepreciation on plant machinery and e1uipment 8ales commissions Administrati$e eEpenses 92*3(333 9 ,,(333 9 23(333 9 +3(333 9 !3(333 9 %3(333 9 &3(333

0he actual amount of manufacturing o$erhead costs incurred in une 23/2 totals: a. 9&&,(333 b. 9233(333 *c. 9113(333 d. 9 *3(333 'ndirect labor 923(333 H Plant facility rent 9+3(333 H Cepreciation on plant machinery and e1uipment 9!3(333 < 9113(333 12. 0he amount of manufacturing o$erhead allocated to all "obs during une 23/2 totals: a. 9,,(333 *b. 913&(333 c. 9113(333 d. 9233(333 ,(333 direct labor#hour E 91& per direct labor hour < 913&(333 23. )or a. *b. c. d. une 23/2( manufacturing o$erhead was: o$erallocated underallocated neither o$erallocated nor underallocated indeterminable

Bnderallocated: Allocated o$erhead < 913&(333 I,(333 E 91& per dlhJ while actual o$erhead <9113(333