A) Cannot be traced to cost objects in a cost-effective manner, but are instead allocated to cost objects. B) Cannot be allocated to cost objects. C) Are always variable costs. D) Are only incurred by manufacturing companies. A) Cannot be traced to cost objects in a cost-effective manner, but are instead allocated to cost objects. B) Cannot be allocated to cost objects. C) Are always variable costs. D) Are only incurred by manufacturing companies.

The Western and Pacific Railroad has two divisions, the Western Division and the Pacific Division. The company recently invested $8,600,000 to maintain its railroad track. Pertinent data for the two divisions are as follows:Total Miles Traveled: $\begin{array}{lr} \text { Western Division } & 860,000 \mathrm{miles} \\ \text { Pacific Division } & 1,260,000 \mathrm{miles} \end{array}$ The amount of track improvement cost that should be allocated to the Western Division is: (Round intermediate calculation to 2 decimal places.)

A) $5,819,333. B) $3,491,600. C) $4,300,000. D) $860,000. A) $5,819,333. B) $3,491,600. C) $4,300,000. D) $860,000.

Alleghany Community College operates four departments. The square footage used by each department is shown below. $\begin{array}{lc} \text { Department } & \text { Square Footage }\\ \text { Accounting } & 4,000 \\ \text { Marketing } & 5,000 \\ \text { Technology } & 7,000 \\ \text { Sciences } & \underline{4,000}\\ \text {Total}&\underline{20,000} \end{array}$ Alleghany's annual building rental cost is $250,000. What amount of rent expense should be allocated to the Technology Department? (Do not round intermediate calculations.)

A) $50,000 B) $62,500 C) $87,500 D) $250,000 A) $50,000 B) $62,500 C) $87,500 D) $250,000

Alleghany Community College operates four departments. The square footage used by each department is shown below. $\begin{array}{lc} \text { Department }&\text {Square Footage }\\ \text { Accounting } & 3,000 \\ \text { Marketing } & 4,000 \\ \text { Technology } & 6,000 \\ \text { Sciences } & \underline{3,000}\\ \text { Total }& \underline{16,000} \end{array}$ Alleghany's annual building rental cost is $320,000. What amount of rent expense should be allocated to the Technology Department?

A) $60,000 B) $80,000 C) $120,000 D) $192,000 A) $60,000 B) $80,000 C) $120,000 D) $192,000

Exam 12: Cost Accumulation, Tracing, and Allocation

Jiminez Company paid its annual property tax of $12,400 on its manufacturing facility in January. The company expects to make 4,000 units of product during the year. During January, 700 units of product were produced. Based on this information: (Do not round intermediate calculations.)

(Multiple Choice)

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Question 61

Cost allocation involves:

(Multiple Choice)

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Question 62

At the beginning of the year, Rangle Company expected to incur $58,000 of overhead costs in producing 5,800 units of product. The direct material cost is $24 per unit of product. Direct labor cost is $34 per unit. During January, 540 units were produced. The total cost of the units made in January was:

(Multiple Choice)

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Question 63

Allocation of costs to various cost objects may:

(Multiple Choice)

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Question 64

Overhead costs:

(Multiple Choice)

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Question 65

Because Fenwick Company has significant swings in its monthly production, the best way to allocate its plant manager's $58,000 annual salary is to allocate 1/12^th of the cost each month.

(True/False)

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Question 66

A cost pool should be made up of costs with a common cost object.

(True/False)

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Question 67

Overhead costs include:

(Multiple Choice)

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Question 68

Each indirect cost should be allocated to products individually to provide the most useful cost information.

(True/False)

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Question 69

The Western and Pacific Railroad has two divisions, the Western Division and the Pacific Division. The company recently invested $8,600,000 to maintain its railroad track. Pertinent data for the two divisions are as follows:Total Miles Traveled: Western Division 860,000 Pacific Division 1,260,000 The amount of track improvement cost that should be allocated to the Western Division is: (Round intermediate calculation to 2 decimal places.)

(Multiple Choice)

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Question 70

Alleghany Community College operates four departments. The square footage used by each department is shown below. Department Square Footage Accounting 4,000 Marketing 5,000 Technology 7,000 Sciences Total Alleghany's annual building rental cost is $250,000. What amount of rent expense should be allocated to the Technology Department? (Do not round intermediate calculations.)

(Multiple Choice)

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Question 71

Alleghany Community College operates four departments. The square footage used by each department is shown below. Department Square Footage Accounting 3,000 Marketing 4,000 Technology 6,000 Sciences Total Alleghany's annual building rental cost is $320,000. What amount of rent expense should be allocated to the Technology Department?

(Multiple Choice)

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Question 72

Blankenship Company operates a factory with two departments, X and Y. The utilities to heat and light the manufacturing facility would most likely be allocated to departments X and Y on the basis of:

(Multiple Choice)

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Question 73

Overhead costs include:

(Multiple Choice)

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Question 74

Custom Quilters makes decorative comforters, quilted garments, and other products in a small sewing factory. The company expects to make 2,000 comforters during the current year. With respect to the comforters, how would the supervisory salaries be classified?

(Multiple Choice)

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Question 75

The terms "cost tracing" and "cost allocation" may be used interchangeably because they mean the same thing.

(True/False)

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Question 76

A predetermined overhead rate is calculated using estimated or predicted cost and volume data.

(True/False)

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Question 77

Sturbridge Company manufactures fine furniture and grandfather clocks. Sturbridge has an excellent reputation, and each grandfather clock sells for several thousand dollars. Which of the following is an indirect cost, assuming the cost object is the Clock Department?

(Multiple Choice)

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Question 78

Which of the following statements is true regarding the salary of the manager of a fast-food hamburger restaurant?

(Multiple Choice)

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Question 79

The accuracy of managerial accounting information usually is more important than timeliness.

(True/False)

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Question 80

Showing 61 - 80 of 211

Jiminez Company paid its annual property tax of $12,400 on its manufacturing facility in January. The company expects to make 4,000 units of product during the year. During January, 700 units of product were produced. Based on this information: (Do not round intermediate calculations.)

Cost allocation involves:

Allocation of costs to various cost objects may:

Overhead costs:

Because Fenwick Company has significant swings in its monthly production, the best way to allocate its plant manager's $58,000 annual salary is to allocate 1/12^th of the cost each month.

A cost pool should be made up of costs with a common cost object.

Overhead costs include:

Each indirect cost should be allocated to products individually to provide the most useful cost information.

Blankenship Company operates a factory with two departments, X and Y. The utilities to heat and light the manufacturing facility would most likely be allocated to departments X and Y on the basis of:

Overhead costs include:

Custom Quilters makes decorative comforters, quilted garments, and other products in a small sewing factory. The company expects to make 2,000 comforters during the current year. With respect to the comforters, how would the supervisory salaries be classified?

The terms "cost tracing" and "cost allocation" may be used interchangeably because they mean the same thing.

A predetermined overhead rate is calculated using estimated or predicted cost and volume data.

Sturbridge Company manufactures fine furniture and grandfather clocks. Sturbridge has an excellent reputation, and each grandfather clock sells for several thousand dollars. Which of the following is an indirect cost, assuming the cost object is the Clock Department?

Which of the following statements is true regarding the salary of the manager of a fast-food hamburger restaurant?

The accuracy of managerial accounting information usually is more important than timeliness.

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

Jiminez Company paid its annual property tax of $12,400 on its manufacturing facility in January. The company expects to make 4,000 units of product during the year. During January, 700 units of product were produced. Based on this information: (Do not round intermediate calculations.)

Cost allocation involves:

Allocation of costs to various cost objects may:

Overhead costs:

Because Fenwick Company has significant swings in its monthly production, the best way to allocate its plant manager's $58,000 annual salary is to allocate 1/12th of the cost each month.

A cost pool should be made up of costs with a common cost object.

Overhead costs include:

Each indirect cost should be allocated to products individually to provide the most useful cost information.

Blankenship Company operates a factory with two departments, X and Y. The utilities to heat and light the manufacturing facility would most likely be allocated to departments X and Y on the basis of:

Overhead costs include:

Custom Quilters makes decorative comforters, quilted garments, and other products in a small sewing factory. The company expects to make 2,000 comforters during the current year. With respect to the comforters, how would the supervisory salaries be classified?

The terms "cost tracing" and "cost allocation" may be used interchangeably because they mean the same thing.

A predetermined overhead rate is calculated using estimated or predicted cost and volume data.

Sturbridge Company manufactures fine furniture and grandfather clocks. Sturbridge has an excellent reputation, and each grandfather clock sells for several thousand dollars. Which of the following is an indirect cost, assuming the cost object is the Clock Department?

Which of the following statements is true regarding the salary of the manager of a fast-food hamburger restaurant?

The accuracy of managerial accounting information usually is more important than timeliness.

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

Because Fenwick Company has significant swings in its monthly production, the best way to allocate its plant manager's $58,000 annual salary is to allocate 1/12^th of the cost each month.