Q4.A consumer packaged goods company would likely use process costing. True Fals
ID: 2546032 • Letter: Q
Question
Q4.A consumer packaged goods company would likely use process costing.
True
False
Q6.Consider a desset making plant which manufactures pies, cakes, and ice creams. Fill in the blanks to indicate whether the cost is direct or indirect. Pie crust would be a(n) ___________ cost
Q7.Janitorial services would be a(n) ______________ cost.
Q8.Factory rent would be a(n) _______________ cost.
Q9.Pie filling would be a(n) ____________ cost.
Q10.Hydro for the plant would be a(n) ______________ cost
Q11.Job-order costing is most effective for:
homogeneous products
mass-produced products
batch-produced products
Q12.The source document that details material costs is a:
materials ticket
materials requisition
materials detail ledger
Q13.Using budgeted rates in place of actual rates represents this type of costing:
budgeted costing
regular costing
normal costing
Q14.A labour time ticket should always include the following four items:
job number, employee number, annual salary, materials used
employee number, account number, job number, hours worked
employee number, job number, hours worked, hourly rate
Q15.A company uses labour hours as their overhead allocation base. If they estimate annual overhead costs of $800,000 and annual labour hours of 170,000, what would their budgeted overhead application rate be?
$4.71
$40.71
$26.20
Q16.In a process costing environment, products should be:
homogeneous
continuously produced
Both a and b
Q17.If 5,000 physical units are 30% complete, how many equivalent units exist?
1500
2500
3500
Q18.Direct labour is a(n):
overhead cost
conversion cost
both a and b
Q19.Which of the following is not a step in the process costing process?
create a diagram showing all activity centres
calculate equivalent units
calculate production costs per unit
Q20.Process A incurs the following costs: Direct materials: $60,000, Direct labour: $45,000, Factory overhead: $55,000. What are the total conversion costs for Product A?
$105,000
$115,000
$100,000
Q21.Activity Based Costing is:
easy to implement and easy to maintain.
difficult to implement and difficult to maintain.
Easy to implement and difficult to maintain.
Q22.ABC can be used in conjunction with job-order costing and process-costing to allocate:
overhead costs
prime costs
Neither a nor b
Q23.An appropriate cost driver for machine maintenance would be:
Change orders
Production runs
machine hours
Q24.Which of the following is not a step in the Activity Based Costing setup process?
calculate activity production rates
develop an activity map
assign appropriate cost drivers
Q25.If the budgeted rate per production run is $4.87, and Product X requires 4 production runs, how much production setup cost should be allocated to Product X?
$14.58
$16.67
$19.48
a.homogeneous products
b.mass-produced products
c.batch-produced products
Explanation / Answer
Q. 4. True.
Q. 6. Pie crust would be a direct cost.
Q. 7. Janitorial services would be an indirect cost.
Q. 8. Factory rent would be an indirect cost.
Q. 9. Pie filling would be a direct cost.
Q. 10. Hydro for the plant would be an indirect cost.
Q. 11. c. Batch produced products.
Q. 12. b. Materials requisition.
Q. 13. c. Normal Costing
Q. 14. c. Employee number, job number, hours worked, hourly rate.
Q. 15. a. $ 4.71
Q. 16. c. Both a and b.
Q. 17. a. 1,500
Q. 18. b. Conversion cost.
Q. 19. a. Create a diagram showing all activity centres.
Q. 20. c. $ 100,000.
Q. 21. b. Difficult to implement and difficult to maintain.
Q. 22. a. Overhead costs.
Q. 23. c. Machine hours.
Q. 24. b. Develop an activity map.
Q. 25. c. $ 19.48.
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