1. Which of the following is not typical of traditional costing systems? a. Use
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Question
1. Which of the following is not typical of traditional costing systems? a. Use of a single predetermined overhead rate. b. Use of direct labor hours or direct labor cost to assign overhead. c. Assumption of correlation between direct labor and incurrence of overhead cost d. Use of multiple cost drivers to allocate overhead 2.Activities required to support or sustain an entire production process are called a. unit-level activities. b. batch-level activities c. product-level activities. d. facility-level activities 3. Predetermined overhead rates in traditional costing are often based on a. direct labor cost for job order costing and machine hours for process costing. b. machine hours for job order costing and direct labor cost for process costing. c. multiple bases for job order costing and direct labor cost for process costing. d. multiple bases for both job order costing and process costing. 4.An Ordering and Receiving Materials" cost pool would most likely have as a cost driver: .Anmachnefsetuse orders b. c. d. number of setups. number of purchase orders. number of inspection tests. Estimated costs for activity cost pools and other item(s) are as follows: Machining Assembling Advertising Inspecting and testing . $200,000 200,000 450,000 175,000 Total estimated overhead is a. $400,000. b. $575,000. c. $825,000 d. $1,025,000. 6. Anexample of a cost which would not be assigned to an overhead cost pool is a. indirect salaries. b. freight-out c. factory machine depreciation. d. indirect materials.Explanation / Answer
Answer 1 d 2 d 3 a 4 c 5 b Advertising not overhead 6 b 7 b 60000 to be assigned on machine hour basis i.e. in the ratio of 500:500 8 a 9 b 10 d 11 d
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