Scribd
Upload
117 views

Quiz 3 Solution

This document contains a quiz with multiple choice questions about management accounting and costing systems. Specifically, it tests knowledge on: 1) When departmental vs. plant-wide overhead rates are preferred. 2) The process of product costing in manufacturing firms. 3) What is included in the total production cost when using normal costing. 4) The components that make up manufacturing overhead. 5) When departmental or other overhead rates might be used. It also includes a case study with questions about predetermined overhead rates, applied overhead, and under/overapplication of overhead.

Uploaded by

imagineimf
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
117 views

Quiz 3 Solution

This document contains a quiz with multiple choice questions about management accounting and costing systems. Specifically, it tests knowledge on: 1) When departmental vs. plant-wide overhead rates are preferred. 2) The process of product costing in manufacturing firms. 3) What is included in the total production cost when using normal costing. 4) The components that make up manufacturing overhead. 5) When departmental or other overhead rates might be used. It also includes a case study with questions about predetermined overhead rates, applied overhead, and under/overapplication of overhead.

Uploaded by

imagineimf
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Roll Number:_________________________________________________________________

EMBA 2020 MANAGEMENT ACCOUNTING AND CONTROL SYSTEMS 14 April 2019

Quiz 3

1. Departmental overhead rates are generally preferred to plant-wide overhead rates


when:
A) the activities of the various departments in the plant are not homogeneous.
B) the activities of the various departments in the plant are homogeneous.
C) most of the overhead costs are fixed.
D) all departments in the plant are heavily automated.

2. Product costing in a manufacturing firm is the process of: 


 

A.  accumulating the company's period costs.


B.  allocating costs among the firm's departments.
C.  placing a value on the company's fixed assets.
D.  assigning costs to the firm's inventory.
E.  assigning costs to the company's managers.

3. When using normal costing, the total production cost of a job is composed of: 
 

A.  direct material and direct labor.


B.  direct material, direct labor, manufacturing overhead, and outlays for selling costs.
C.  direct material, direct labor, manufacturing overhead, and outlays for both selling and administrative costs.
D.  direct material, direct labor, and applied manufacturing overhead.
E.  direct material, direct labor, and actual manufacturing overhead.

4. Manufacturing overhead: 
 

A.  includes direct materials, indirect materials, indirect labor, and factory depreciation.
B.  is easily traced to jobs.
C.  includes all selling costs.
D.  should not be assigned to individual jobs because it bears no obvious relationship to them.
E.  is a pool of indirect production costs that must somehow be attached to each unit manufactured.

5. If the amount of effort and attention to products varies substantially throughout a company's various manufacturing
operations, the company might consider the use of: 
 

A.  a plant wide overhead rate.


B.  departmental overhead rates.
C.  actual overhead rates instead of predetermined overhead rates.
D.  direct labor hours to determine the overhead rate.
E.  machine hours to determine the overhead rate.

Use the following data for next 3 questions:

Acton Corporation, which applies manufacturing overhead on the basis of machine-hours, has
provided the following data for its most recent year of operations.
Estimated manufacturing overhead ....................... $139,080
Estimated machine-hours ...................................... 3,800
Actual manufacturing overhead ............................ $137,000
Actual machine-hours ........................................... 3,780

The estimates of the manufacturing overhead and of machine-hours were made at the
beginning of the year for the purpose of computing the company's predetermined overhead
rate for the year.

6. The predetermined overhead rate is closest to:


A) $36.60
B) $36.41
C) $36.24
D) $36.05

7. The applied manufacturing overhead for the year is closest to:


A) $136,269
B) $138,348
C) $136,987
D) $137,630

8. The overhead for the year was:


A) $732 underapplied
B) $1,348 underapplied
C) $732 overapplied
D) $1,348 overapplied

You might also like