UNIT 2 QUIZ\t1. Question : At the end of a fiscal year, overapplied factory overhead should\tbe:\tStudent Answer:\tDebited to Cost of Goods sold.\tCredited to Cost of Goods sold.\tDebited to Cost of Good Manufactured.\tNone of the above.\t\u00a0\tQuestion 2. Question : Which one of the following is the amount that actual factory\toverhead exceeds the factory overhead applied?\tStudent Answer:\tFactory overhead applied.\tActual factory overhead.\tOverapplied overhead.\tAllocated factory overhead.\tUnderapplied overhead.\t\u00a0\tQuestion 3. Question : The two main advantages of using predetermined factory overhead\trates are to provide more accurate unit cost information and to:\tStudent Answer:\tSimplify the accounting process.\tProvide cost information on a timely basis.\tInsure transmission of correct data.\tExtend the useful life of the cost data.\tAdjust for variances in data sources.\t\u00a0\tUNIT 2 QUIZ\tQuestion 4. Question : The ideal criterion for choosing an allocation base for overhead is:\tStudent Answer:\tEase of calculation.\tA cause-and-effect relationship.\tEase of use.\tIts preciseness.\t\u00a0\t\u00a0\tQuestion 5. Question : Effective implementation of activity-based costing (ABC)\trequires:\tStudent Answer:\tNormally the assistance of a consultant.\tA sophisticated and expensive computer system.\tSupport of top management and key employees.\tCapturing properly the complexity of the data.\tABC has no significant implementation issues.\t\u00a0\t\u00a0\tQuestion 6. Question : Which of the following would likely be the most appropriate cost\tdriver of electric power used by machines?\tStudent Answer:\tNumber of units.\tMachine size.\tNumber of machine hours.\tNumber of production runs.\tPurchase cost of machines.\tUNIT 2 QUIZ\tQuestion 7. Question : In an activity-based costing system, overhead costs are divided\tinto separate:\tStudent Answer:\tCost objects.\tActivity cost pools.\tResource consumption and activity consumption cost drivers.\tProduct-line cost pools.\tPlantwide or departmental cost pools.\t\u00a0\t\u00a0\tQuestion 8. Question : Which of the following is a batch-level cost driver?\tStudent Answer:\tOutput units.\tNumber of employees.\tNumber of orders.\tNumber of parts.\t\u00a0\t\u00a0\tQuestion 9. Question : Units accounted for includes units completed and transferred out\tplus:\tStudent Answer:\tBeginning inventory.\tUnits to account for.\tEnding inventory.\tUnits started.\t\u00a0\tUNIT 2 QUIZ\tQuestion 10. Question : In calculating unit cost in a process costing system, “conversion\tcost” is defined as the sum of:\tStudent Answer:\tDirect and indirect material costs.\tDirect and indirect labor costs.\tDirect labor and factory overhead costs.\tIndirect labor and factory overhead costs.\t\u00a0\t\u00a0\tQuestion 11. Question : The journal entry to record incurred direct labor would include a\tcredit to:\tStudent Answer:\tWork-in-Process Inventory.\tAccrued Payroll.\tFactory Overhead.\tMaterials Inventory.\tFinished Goods Inventory.\t\u00a0\t\u00a0\tQuestion 12. Question : Process cost systems are used in all of the following industries\texcept:\tStudent Answer:\tChemicals.\tShip building.\tOil refining.\tTextiles.\tSteel.\tUNIT 2 QUIZ\tQuestion 13. Question : ABC Company listed the following data for the current year:\tBudgeted Factory Overhead = $ 1,044,000\tBudgeted Direct labor Hours = 69,600\tBudgeted Machine Hours = 24,000\tActual Factory Overhead = 1,037,400\tActual Labor Hours = 72,600\tActual Machine Hours = 23,600\tIf overhead is applied based on direct labor hours, the\toverapplied\/underapplied overhead is:\tStudent Answer:\t$15,300 underapplied.\t$15,300 overapplied.\t$51,600 underapplied.\t$51,600 overapplied.\t$-0-\t\u00a0\tUNIT 2 QUIZ\tQuestion 14. Question : Randall Company manufactures products to customer\tspecifications. A job costing system is used to accumulate\tproduction costs. Factory overhead cost was applied at 125% of\tdirect labor cost. Selected data concerning the past year’s\toperation of the company are presented below.\tDirect Materials January 1 = $77,000\tDirect Materials December 31 = 40,000\tWIP January 1 = 66,000\tWIP December 31 = 42,000\tFinished Goods January 1 = 115,000\tFinished Goods December 31 = 100,000\tOther Information:\tDirect Materials Purchased = $324,000\tCost of Goods Available for Sale = 950,000\tActual Factory Overhead = 206,000\tThe cost of goods manufactured during the year is:\tStudent Answer:\t$850,000.\t$348,000.\t$672,000.\t$835,000.\t$811,000.\t\u00a0\t\u00a0\tQuestion 15. Question : If a firm has 1,200 completed and transferred out units, 200\tequivalent units of beginning work in process and 500 ending\twork-in-process equivalent units, what is the total of equivalent\tunits of production using the weighted-average method?\tStudent Answer:\t1,500 units.\t1,700 units.\t1,200 units.\tCannot be determined from the above.<\/p>\n","protected":false},"excerpt":{"rendered":"
UNIT 2 QUIZ 1. Question : At the end of a fiscal year, overapplied factory overhead should be: Student Answer: Debited to Cost of Goods sold. Credited to Cost of Goods sold. Debited to Cost of Good Manufactured. None of Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-217243","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/217243","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=217243"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/217243\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=217243"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=217243"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=217243"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}