Question#1. Which of the following would not be included in manufacturing overhe

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Question#1. Which of the following would not be included in manufacturing overhead in a company that manufactures desk lamps?

A. The wages of the forklift operator who moves materials from one processing department to the next.

B. The wages of the factory worker who performs quality control checks.

C. The wages of the factory worker who assembles the lamps.

D. The wages of the factory supervisor.

Question #2. In a company that makes handcrafted custom jewelry, the most likely cost driver used to allocate MOH would be:

A. Direct labor hours

B. Materials cost

C. Number of purchase orders issued

D. Size of the piece

Question #3. A cost driver is:

A. an activity rate

B. the estimated cost of an activity

C. an activity that causes costs to increase

D. a transportation cost

Questions #4. The entry to apply manufacturing overhead includes:

A. a debit to MOH

B. a debit to WIP

C. A debit to FG

D. A credit to WIP

Explanation / Answer

1 The wages of the factory worker who assembles the lamps would not be included in manufacturing overhead 2 The most likely cost driver used to allocate MOH would be Direct labor hours 3 A cost driver is an activity that causes costs to increase 4 The entry to apply manufacturing overhead includes a debit to WIP

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