Marsden Company has three departments occupying the following amount of floor space: \[\begin{array} { l l } \text { Department } 1 & 24,000 \text { sq.ft. } \\ \text { Department } 2 & 10,500 \text { sq. ft. } \\ \text { Department } 3 & 34,000 \text { sq. ft. } \end{array}\] How much store rent should be allocated to Department 3 if total rent is equal to $90,000? (Do not round intermediate calculations.)

A) $44,412 B) $34,000 C) $14,238 D) None of the answers are correct. A) $44,412 B) $34,000 C) $14,238 D) None of the answers are correct.

Bank's Department Store has three departments: Men's, Women's and Children's. The store incurred $24,000 of store rental costs during the current year. The departments identified the following cost drivers: $\begin{array}{lrrr} &\text { Men's }&\text {Women's}&\text { Children's }\\ \text { Labor dollars } & \$ 524,000 & \$ 769,000 & \$ 234,000 \\ \text { Number of employees } & 26 & 36 & 20 \\ \text { Square footage } & 2,400 & 7,400 & 1,500 \\ \text { Number of sales transactions } & 294,000 & 894,000 & 84,000 \end{array}$ Using the most appropriate cost driver, how much rental cost should be allocated to the Women's Department? (Do not round intermediate calculations. Round your answer to the nearest dollar.)

A) $15,717 B) $5,854 C) $3,678 D) $1,585 A) $15,717 B) $5,854 C) $3,678 D) $1,585

The following are Acme's production costs for the quarter ended September 30th: $\begin{array}{llr} \text {Direct materials } &\$160,000\\ \text { Direct labor} &\$110,000\\ \text {Factory overhead } &\$44,000 \end{array}$ What amount of costs should be traced to specific products in the process?

A) $160,000 B) $204,000 C) $314,000 D) $270,000 A) $160,000 B) $204,000 C) $314,000 D) $270,000

The following are Acme's production costs for the quarter ended September 30th: $\begin{array}{llr} \text {Direct materials } &\$100,000\\ \text {Direct labor } &\$190,000\\ \text { Factory overhead} &\$50,000 \end{array}$ What amount of costs should be traced to specific products in the process?

A) $100,000 B) $150,000 C) $340,000 D) $290,000 A) $100,000 B) $150,000 C) $340,000 D) $290,000

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 $54,000 are allocated based on labor cost. Assume 4,000 units of product A and 5,000 units of Product B are produced. What amount of production costs would be assigned to Product A? (Do not round intermediate calculations.)

A) $39,000 B) $93,000 C) $50,000 D) None of the answers are correct. A) $39,000 B) $93,000 C) $50,000 D) None of the answers are correct.

Sheddon Industries produces two products. The products' identified costs are as follows: \[\begin{array} { l c c } & \text { Product A } & \text { Product B } \\ \text { Direct materials } & \$ 24,000 & \$ 19,000 \\ \text { Direct labor } & 12,000 & 20,000 \end{array}\] The company's overhead costs of $58,000 are allocated based on labor cost. Assume 8,000 units of product A and 9,000 units of Product B are produced. What amount of production costs would be assigned to Product A? (Do not round intermediate calculations.)

A) $47,000 B) $105,000 C) $53,400 D) None of the answers are correct. A) $47,000 B) $105,000 C) $53,400 D) None of the answers are correct.

Exam 12: Cost Accumulation, Tracing, and Allocation

A cost object is anything for which management desires a separate tracking of costs, while a cost driver is the factor that causes the cost object to increase or decrease.

(True/False)

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Question 121

Which of the following statements is true?

(Multiple Choice)

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Question 122

Once indirect costs are pooled, they must remain pooled for all allocations.

(True/False)

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Question 123

Marsden Company has three departments occupying the following amount of floor space: Department 1 24,000 sq.ft. Department 2 10,500 sq. ft. Department 3 34,000 sq. ft. How much store rent should be allocated to Department 3 if total rent is equal to $90,000? (Do not round intermediate calculations.)

(Multiple Choice)

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Question 124

Bank's Department Store has three departments: Men's, Women's and Children's. The store incurred $24,000 of store rental costs during the current year. The departments identified the following cost drivers: Men's Women's Children's Labor dollars \ 524,000 \ 769,000 \ 234,000 Number of employees 26 36 20 Square footage 2,400 7,400 1,500 Number of sales transactions 294,000 894,000 84,000 Using the most appropriate cost driver, how much rental cost should be allocated to the Women's Department? (Do not round intermediate calculations. Round your answer to the nearest dollar.)

(Multiple Choice)

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Question 125

The following are Acme's production costs for the quarter ended September 30^th: Direct materials \1 60,000 Direct labor \1 10,000 Factory overhead \4 4,000 What amount of costs should be traced to specific products in the process?

(Multiple Choice)

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Question 126

Jiminez Company paid its annual property tax of $6,000 on its manufacturing facility in January. The company expects to make 4,000 units of product during the year. During January, 300 units of product were produced. Based on this information:

(Multiple Choice)

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Question 127

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 128

Which of the following statements is true?

(Multiple Choice)

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Question 129

Which of the following is an appropriate cost driver for allocating indirect costs to a human resources department in a service company?

(Multiple Choice)

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Question 130

Which of the following is an appropriate cost driver for allocating indirect costs to a human resources department in a service company?

(Multiple Choice)

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Question 131

The following are Acme's production costs for the quarter ended September 30^th: Direct materials \1 00,000 Direct labor \1 90,000 Factory overhead \5 0,000 What amount of costs should be traced to specific products in the process?

(Multiple Choice)

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Question 132

Which of the following is not a step in allocating indirect costs to cost objects?

(Multiple Choice)

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Question 133

Which of the following is not a step in allocating indirect costs to cost objects?

(Multiple Choice)

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Question 134

Which of the following costs generally can be traced directly to units of product?

(Multiple Choice)

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Question 135

Costs that can be traced to a cost object in a cost-effective way are called direct costs.

(True/False)

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Question 136

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 $54,000 are allocated based on labor cost. Assume 4,000 units of product A and 5,000 units of Product B are produced. What amount of production costs would be assigned to Product A? (Do not round intermediate calculations.)

(Multiple Choice)

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Question 137

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 hourly wages of sewing machine operators be classified?

(Multiple Choice)

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Question 138

During the current year, Kemp Construction Company built 23 custom homes that ranged in size from 2,500 square feet to 8,000 square feet. One home was completed each month during January, February, and March. Three homes were completed during April and May. Two homes were completed during each of the months from June through December. Based upon this information, the most appropriate allocation base (i.e., cost driver) for the assignment of indirect overhead costs to each house would be the:

(Multiple Choice)

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Question 139

Sheddon Industries produces two products. The products' identified costs are as follows: Product A Product B Direct materials \ 24,000 \ 19,000 Direct labor 12,000 20,000 The company's overhead costs of $58,000 are allocated based on labor cost. Assume 8,000 units of product A and 9,000 units of Product B are produced. What amount of production costs would be assigned to Product A? (Do not round intermediate calculations.)

(Multiple Choice)

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Question 140

Showing 121 - 140 of 211

A cost object is anything for which management desires a separate tracking of costs, while a cost driver is the factor that causes the cost object to increase or decrease.

Which of the following statements is true?

Once indirect costs are pooled, they must remain pooled for all allocations.

Marsden Company has three departments occupying the following amount of floor space: Department 1 24,000 sq.ft. Department 2 10,500 sq. ft. Department 3 34,000 sq. ft. How much store rent should be allocated to Department 3 if total rent is equal to $90,000? (Do not round intermediate calculations.)

The following are Acme's production costs for the quarter ended September 30^th: Direct materials \1 60,000 Direct labor \1 10,000 Factory overhead \4 4,000 What amount of costs should be traced to specific products in the process?

Jiminez Company paid its annual property tax of $6,000 on its manufacturing facility in January. The company expects to make 4,000 units of product during the year. During January, 300 units of product were produced. Based on this information:

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

Which of the following statements is true?

Which of the following is an appropriate cost driver for allocating indirect costs to a human resources department in a service company?

Which of the following is an appropriate cost driver for allocating indirect costs to a human resources department in a service company?

The following are Acme's production costs for the quarter ended September 30^th: Direct materials \1 00,000 Direct labor \1 90,000 Factory overhead \5 0,000 What amount of costs should be traced to specific products in the process?

Which of the following is not a step in allocating indirect costs to cost objects?

Which of the following is not a step in allocating indirect costs to cost objects?

Which of the following costs generally can be traced directly to units of product?

Costs that can be traced to a cost object in a cost-effective way are called direct costs.

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 hourly wages of sewing machine operators be classified?

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

A cost object is anything for which management desires a separate tracking of costs, while a cost driver is the factor that causes the cost object to increase or decrease.

Which of the following statements is true?

Once indirect costs are pooled, they must remain pooled for all allocations.

The following are Acme's production costs for the quarter ended September 30th: Direct materials \1 60,000 Direct labor \1 10,000 Factory overhead \4 4,000 What amount of costs should be traced to specific products in the process?

Jiminez Company paid its annual property tax of $6,000 on its manufacturing facility in January. The company expects to make 4,000 units of product during the year. During January, 300 units of product were produced. Based on this information:

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

Which of the following statements is true?

Which of the following is an appropriate cost driver for allocating indirect costs to a human resources department in a service company?

Which of the following is an appropriate cost driver for allocating indirect costs to a human resources department in a service company?

The following are Acme's production costs for the quarter ended September 30th: Direct materials \1 00,000 Direct labor \1 90,000 Factory overhead \5 0,000 What amount of costs should be traced to specific products in the process?

Which of the following is not a step in allocating indirect costs to cost objects?

Which of the following is not a step in allocating indirect costs to cost objects?

Which of the following costs generally can be traced directly to units of product?

Costs that can be traced to a cost object in a cost-effective way are called direct costs.

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 hourly wages of sewing machine operators be classified?

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 60,000 Direct labor \1 10,000 Factory overhead \4 4,000 What amount of costs should be traced to specific products in the process?

The following are Acme's production costs for the quarter ended September 30^th: Direct materials \1 00,000 Direct labor \1 90,000 Factory overhead \5 0,000 What amount of costs should be traced to specific products in the process?