Michael & Co. expects overhead costs of $60,000 per month and direct production costs of $24 per unit. The estimated production activity for the current accounting period is as follows: \[\begin{array} { | l | c | c | c | c | } \hline& 1 ^ { \text {st } } \text { Quarter } & 2 ^ { \text {nd } } \text { Quarter } & \mathbf { 3 } ^ { \text {rd } } \text { Quarter } & 4 ^ { \text {th } } \text { Quarter } \\ \hline \text { Units produced } & 11,500 & 5,000 & 8,250 & 11,250 \\ \hline \end{array}\] The predetermined overhead rate based on units produced is: (Round the answer to 2 decimal places.)

A) $1.50 per unit. B) $2.67 per unit. C) $18.00 per unit. D) $42.00 per unit. A) $1.50 per unit. B) $2.67 per unit. C) $18.00 per unit. D) $42.00 per unit.

The following are Acme's production costs for the quarter ended September 30th: $\begin{array}{llr} \text {Direct materials } &\$150,000\\ \text { Direct labor} &\$175,000\\ \text {Factory overhead } &\$225,000 \end{array}$ What amount of costs should be traced to specific products in the process?

A) $150,000 B) $175,000 C) $225,000 D) $325,000 A) $150,000 B) $175,000 C) $225,000 D) $325,000

Which of the following is not an example of a cost object and its related cost driver? $\begin{array}{cc} \text { Cost Object } &&& \text { Cost Driver } \\ \end{array}$ A.$\begin{array}{cc} \text { Rent} &&&&&& \text {Square feet } \\ \end{array}$ B.$\begin{array}{cc} \text { Transportation } && \text { Miles driven } \\ \end{array}$ C.$\begin{array}{cc} \text { Direct labor hours} & \text {Indirect labor } \\ \end{array}$ D.$\begin{array}{cc} \text {Utilities } &&&&& \text { Machine hours } \\ \end{array}$

A) Option A B) Option B C) Option C D) Option D A) Option A B) Option B C) Option C D) Option D

Sheddon Industries produces two products. The products' identified costs are as follows: \[\begin{array} { l c c } & \text {Product A } & \text { Product B} \\ \text { Direct materials } & \$ 20,000 & \$ 15,000 \\ \text { Direct labor } & \$ 12,000 & 24,000 \end{array}\] The company's overhead costs of $108,000 are allocated based on direct labor cost. Assume 4,000 units of product A and 5,000 units of Product B are produced. What is the cost per unit for product B? (Do not round intermediate calculations.)

A) $7.80 B) $22.20 C) $16.80 D) None of the answers are correct. A) $7.80 B) $22.20 C) $16.80 D) None of the answers are correct.

Marsden Company has three departments occupying the following amount of floor space: \[\begin{array} { l l } \text { Departiment } 1 & 15,000 \text { sq. ft. } \\ \text { Department } 2 & 10,000 \text { sq. ft. } \\ \text { Department } 3 &25,000 \text { sq. ft. } \end{array}\] How much store rent should be allocated to Department 3 if total rent is equal to $200,000? (Do not round intermediate calculations.)

A) $100,000 B) $50,000 C) $66,667 D) None of the answers are correct. A) $100,000 B) $50,000 C) $66,667 D) None of the answers are correct.

A) Products. B) Services. C) Departments. D) All of the answers are correct. A) Products. B) Services. C) Departments. D) All of the answers are correct.

Marsden Company has three departments occupying the following amount of floor space: \[\begin{array} { l l } \text { Departiment } 1 & 21,000 \text { sq. ft. } \\ \text { Department } 2 & 11,500 \text { sq. ft. } \\ \text { Department } 3 & 31,000 \text { sq. ft. } \end{array}\] How much store rent should be allocated to Department 3 if total rent is equal to $106,000? (Do not round intermediate calculations.)

A) $51,748 B) $31,000 C) $19,197 D) None of the answers are correct. A) $51,748 B) $31,000 C) $19,197 D) None of the answers are correct.

Exam 12: Cost Accumulation, Tracing, and Allocation

Jessup Company expects to incur overhead costs of $20,000 per month and direct production costs of $125 per unit. The estimated production activity for the upcoming year is 1,000 units. If the company desires to earn a gross profit of $50 per unit, the sales price per unit would be which of the following amounts?

(Multiple Choice)

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Question 41

Michael & Co. expects overhead costs of $60,000 per month and direct production costs of $24 per unit. The estimated production activity for the current accounting period is as follows: Quarter Quarter Quarter Quarter Units produced 11,500 5,000 8,250 11,250 The predetermined overhead rate based on units produced is: (Round the answer to 2 decimal places.)

(Multiple Choice)

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Question 42

The following are Acme's production costs for the quarter ended September 30^th: Direct materials \1 50,000 Direct labor \1 75,000 Factory overhead \2 25,000 What amount of costs should be traced to specific products in the process?

(Multiple Choice)

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Question 43

Which of the following is not an example of a cost object and its related cost driver? Cost Object Cost Driver A. Rent Square feet B. Transportation Miles driven C. Direct labor hours Indirect labor D. Utilities Machine hours

(Multiple Choice)

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Question 44

The Flintstone Construction Company delivers dirt and stone from local quarries to its construction sites. A new truck that was purchased for a cost of $120,000 at the beginning of the year was expected to deliver 200,000 tons over its useful life. The following is a breakdown of the tons delivered during the year to each construction site: Construction Sites: A B C D Tons Delivered: 2,000 3,500 4,000 1,500 How much truck depreciation should be allocated to Site A? (Do not round intermediate calculations.)

(Multiple Choice)

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Question 45

Sheddon Industries produces two products. The products' identified costs are as follows: Product A Product B Direct materials \ 20,000 \ 15,000 Direct labor \ 12,000 24,000 The company's overhead costs of $108,000 are allocated based on direct labor cost. Assume 4,000 units of product A and 5,000 units of Product B are produced. What is the cost per unit for product B? (Do not round intermediate calculations.)

(Multiple Choice)

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Question 46

At the beginning of the year, Rangle Company expected to incur $54,000 of overhead costs in producing 6,000 units of product. The direct material cost is $20 per unit of product. Direct labor cost is $30 per unit. During January, 600 units were produced. The total cost of the units made in January was:

(Multiple Choice)

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Question 47

A chair manufacturer makes custom chairs using hand tools, wood, glue, and varnish. Which of the following statements is true?

(Multiple Choice)

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Question 48

Marsden Company has three departments occupying the following amount of floor space: Departiment 1 15,000 sq. ft. Department 2 10,000 sq. ft. Department 3 25,000 sq. ft. How much store rent should be allocated to Department 3 if total rent is equal to $200,000? (Do not round intermediate calculations.)

(Multiple Choice)

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Question 49

Which of the following is not a true statement regarding the pooling of indirect costs?

(Multiple Choice)

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Question 50

All of the following are examples of indirect costs that can be classified as being variable costs except:

(Multiple Choice)

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Question 51

Sometimes, volume-based cost drivers are used to allocate fixed indirect costs.

(True/False)

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Question 52

Cost objects may be:

(Multiple Choice)

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Question 53

Marsden Company has three departments occupying the following amount of floor space: Departiment 1 21,000 sq. ft. Department 2 11,500 sq. ft. Department 3 31,000 sq. ft. How much store rent should be allocated to Department 3 if total rent is equal to $106,000? (Do not round intermediate calculations.)

(Multiple Choice)

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Question 54

The first step in cost accumulation is to identify cost objects.

(True/False)

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Question 55

Which of the followings statements is correct regarding direct and indirect costs?

(Multiple Choice)

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Question 56

Blanton Company wishes to allocate rent expense of $24,000 to its three operating departments, A, B, and C. Assuming the three departments occupy 10,000, 20,000, and 30,000 square feet, respectively, the cost allocation rate for Department C is $0.80 per square foot.

(True/False)

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Question 57

How a particular cost behaves (fixed versus variable) is dependent on whether the cost is classified as direct or indirect.

(True/False)

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Question 58

Herald Manufacturing Company uses a predetermined overhead rate to allocate fixed manufacturing overhead to production on a monthly basis. At the end of the accounting period it was determined that actual overhead cost was less than the estimated overhead cost and that the actual volume of production was higher than estimated. Based on this information alone:

(Multiple Choice)

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Question 59

A factor having a "cause-and-effect" relationship with a cost object is called a(n):

(Multiple Choice)

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Question 60

The following are Acme's production costs for the quarter ended September 30^th: Direct materials \1 50,000 Direct labor \1 75,000 Factory overhead \2 25,000 What amount of costs should be traced to specific products in the process?

Which of the following is not an example of a cost object and its related cost driver? Cost Object Cost Driver A. Rent Square feet B. Transportation Miles driven C. Direct labor hours Indirect labor D. Utilities Machine hours

A chair manufacturer makes custom chairs using hand tools, wood, glue, and varnish. Which of the following statements is true?

Which of the following is not a true statement regarding the pooling of indirect costs?

All of the following are examples of indirect costs that can be classified as being variable costs except:

Sometimes, volume-based cost drivers are used to allocate fixed indirect costs.

Cost objects may be:

The first step in cost accumulation is to identify cost objects.

Which of the followings statements is correct regarding direct and indirect costs?

Blanton Company wishes to allocate rent expense of $24,000 to its three operating departments, A, B, and C. Assuming the three departments occupy 10,000, 20,000, and 30,000 square feet, respectively, the cost allocation rate for Department C is $0.80 per square foot.

How a particular cost behaves (fixed versus variable) is dependent on whether the cost is classified as direct or indirect.

A factor having a "cause-and-effect" relationship with a cost object is called a(n):

An Introduction to Accounting

Accounting for Accruals and Deferrals

Accounting for Merchandising Businesses

Internal Controls, Accounting for Cash, and Ethics

Accounting for Receivables and Inventory Cost Flow

Accounting for Long-Term Operational Assets

Accounting for Liabilities

Proprietorships, Partnerships, and Corporations

Financial Statement Analysis

An Introduction to Management Accounting

Cost Behavior, Operating Leverage, and Profitability Analysis

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Performance Evaluation

Planning for Capital Investments

Filters

Exam 12: Cost Accumulation, Tracing, and Allocation

The following are Acme's production costs for the quarter ended September 30th: Direct materials \1 50,000 Direct labor \1 75,000 Factory overhead \2 25,000 What amount of costs should be traced to specific products in the process?

Which of the following is not an example of a cost object and its related cost driver? Cost Object Cost Driver A. Rent Square feet B. Transportation Miles driven C. Direct labor hours Indirect labor D. Utilities Machine hours

A chair manufacturer makes custom chairs using hand tools, wood, glue, and varnish. Which of the following statements is true?

Which of the following is not a true statement regarding the pooling of indirect costs?

All of the following are examples of indirect costs that can be classified as being variable costs except:

Sometimes, volume-based cost drivers are used to allocate fixed indirect costs.

Cost objects may be:

The first step in cost accumulation is to identify cost objects.

Which of the followings statements is correct regarding direct and indirect costs?

Blanton Company wishes to allocate rent expense of $24,000 to its three operating departments, A, B, and C. Assuming the three departments occupy 10,000, 20,000, and 30,000 square feet, respectively, the cost allocation rate for Department C is $0.80 per square foot.

How a particular cost behaves (fixed versus variable) is dependent on whether the cost is classified as direct or indirect.

A factor having a "cause-and-effect" relationship with a cost object is called a(n):

An Introduction to Accounting

Accounting for Accruals and Deferrals

Accounting for Merchandising Businesses

Internal Controls, Accounting for Cash, and Ethics

Accounting for Receivables and Inventory Cost Flow

Accounting for Long-Term Operational Assets

Accounting for Liabilities

Proprietorships, Partnerships, and Corporations

Financial Statement Analysis

An Introduction to Management Accounting

Cost Behavior, Operating Leverage, and Profitability Analysis

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Performance Evaluation

Planning for Capital Investments

Filters

The following are Acme's production costs for the quarter ended September 30^th: Direct materials \1 50,000 Direct labor \1 75,000 Factory overhead \2 25,000 What amount of costs should be traced to specific products in the process?