Managerial Accounting Ch. 3 Quiz – Flashcards
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Service firms develop a predetermined rate for some costs. This rate is called the A. direct cost rate B. indirect cost allocation rate C. hourly cost rate D. labor rate
answer
B. indirect cost allocation rate
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An internal request to transfer raw materials requires personnel to complete a A. purchase order document B. bill of materials document C. materials requisition document D. labor time record document
answer
C. materials requisition document
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Jasper Carts manufactures custom carts for a variety of uses. The following data have been recorded for Job 651, which was recently completed. Direct materials used costs $7,200. There were 175 direct labor hours worked on this job at a direct labor wage rate of $22 per hour. There were 82 machine hours used on this job. The predetermined overhead rate is $30 per machine hour used. What is the total manufacturing cost of Job 651? A. $7,457 B. $2,460 C. $13,510 D. $3,850
answer
C. $13,510
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Serena Corporation uses estimated manufacturing overhead costs of $880,000 and estimated direct labor hours of 200,000 in establishing manufacturing overhead rates. Allocated manufacturing overhead was $1,012,000 and actual manufacturing overhead was $970,000. What were the number of actual direct hours worked? A. 200,000 B. 230,000 C.181,443 D. 208,660
answer
B. 230,000
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If manufacturing overhead has been overallocated during the period, and most of the jobs produced have been sold, then A. finished goods inventory should be increased B. Cost of Goods Sold on the income statement should be increased. C. Cost of Goods Sold on the income statement should be decreased D. work in process inventory should decreased
answer
C. Cost of Goods Sold on the income statement should be decreased.
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Under which of the following situations is Finished Goods Inventory debited and Work - in - Process Inventory account credited? A. Transfer of goods to the finished goods storeroom B. Purchased of goods on account C. Transfer goods out of the factory D. Transfer of material to Work - in - Process Inventory account
answer
A. Transfer of goods to the finished goods storeroom
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Beta Company uses a predetermined overhead rate based on machine hours to allocate manufacturing overhead to jobs. The company estimated that it would incur $600,100 of manufacturing overhead during the year and that 250,100 machine hours would be used. During the year, the company actually incurred manufacturing overhead costs of $582,100 and 240,100 machine hours were used. By how much was manufacturing overhead overallocated or underallocated for the year? (Round intermediary calculations to the nearest cent and the final answer to the nearest dollar.) A. $5,860 underallocated B. $18,000 overallocated C. $18,000 underallocated D. $5,860 overallocated
answer
A. $5,860 underallocated
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