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- 1. Multiple ChoiceWhich of the following will be categorized as a manufacturing overhead cost?administration charges of showroomwages paid to assembly line workersdepreciation on factory plant and equipmentcost of direct materials used
- 2. Multiple ChoiceWhich of the following will be debited to the Manufacturing Overhead account of a watch manufacturer?salaries paid to accountantsfactory electricity costsoffice telephone costscost of printing brochures
- 3. Multiple ChoiceWhich of the following correctly describes the term cost driver?the inflation rate that causes costs to risethe primary factor that causes a cost to be incurredthe average inventory costs incurred at any point of timethe total material, labor, and overhead costs of a completed job
- 4. Multiple ChoiceThe predetermined overhead allocation rate is the rate used to ________.assign direct material costs to jobsallocate estimated manufacturing overhead costs to jobstrace manufacturing and non manufacturing costs to jobsallocate actual manufacturing overhead costs incurred during a period
- 5. Multiple ChoiceThe predetermined overhead allocation rate is calculated by dividing ________.the actual overhead costs by actual amount of the cost driver or allocation basethe estimated amount of cost driver by actual total overhead coststhe estimated overhead costs by total estimated quantity of the overhead allocation basethe total estimated overhead costs by total number of days in a year
- 6. Multiple ChoiceThe predetermined overhead allocation rate for a given production year is calculated ________.at the end of the production yearafter the preparation of financial statements for the yearafter completion of each jobbefore the accounting period begins
- 7. Multiple ChoiceAaron, Inc. estimates direct labor costs and manufacturing overhead costs for the coming year to be $750,000 and $530,000, respectively. Aaron allocates overhead costs based on machine hours. The estimated total labor hours and machine hours for the coming year are 18,000 hours and 8,000 hours, respectively. What is the predetermined overhead allocation rate? (Round your answer to the nearest cent.)$66.25 per machine hour$93.75 per machine hour$29.44 per labor hour$1.42 per labor hour
- 8. Multiple ChoiceZephyros Corporation had estimated manufacturing overhead costs for the coming year to be $318,000. The total estimated direct labor hours and machine hours for the coming year are 7,000 and 11,000, respectively. Manufacturing overhead costs are allocated based on direct labor hours. What is the predetermined overhead allocation rate? (Round your answer to the nearest cent.)$1.57 per machine hour$17.67 per direct labor hour$45.43 per direct labor hour$28.91 per machine hour
- 9. Multiple Choice
A. $34.87$1.88$32.69$61.67 - Answer choicesTagsAnswer choicesTags