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1.Which of the following is NOT a period cost? Multiple Choice Depreciation of f

ID: 2549086 • Letter: 1

Question

1.Which of the following is NOT a period cost? Multiple Choice Depreciation of factory maintenance equipment. Salary of a clerk who handles customer billing. Insurance on a company showroom where customers can view new products. Cost of a seminar concerning tax law updates that was attended by the company’s controller.

2. A factory supervisor’s wages are classified as:

Multiple Choice

Choice A

Choice B

Choice C

Choice D

3. Beat Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:

Recently, Job M759 was completed. It required 60 machine-hours. The amount of overhead applied to Job M759 is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

$750

$516

$984

$234

Indirect labor Fixed manufacturing overhead A) No No B) Yes Yes C) Yes No D) No Yes

Explanation / Answer

1 Depreciation of factory maintenance equipment is NOT a period cost 2 A factory supervisor’s wages are classified as Indirect labor and part of Fixed manufacturing overhead Choice B is correct 3 Over head rate=3.9+(344000/40000)= $12.5 The amount of overhead applied to Job M759=60*12.5= $750