Exam 2: An Introduction to Cost Terms and Purposes

Use the information below to answer the following question(s). Frazer Inc.had the following activities in the year: -What is Frazer's cost of goods manufactured?

Which one of the following is a variable cost for an insurance company?

Overtime premium is normally considered as a component of direct labour.

Merchandising companies purchase products and sell them to customers without changing their basic form.

Use the information below to answer the following question(s). Macadamia Co.produced and sold 40,000 units last year.Per unit revenue and costs were as follows: Fixed manufacturing overhead and administrative salaries are fixed costs.The per unit amounts are based on last year's production. -Calculate this year's operating income if the company plans to produce and sell 60,000 units.

A manufacturing company contracts with the labour union to guarantee full employment for all employees with at least 10 years seniority.The Company expects to be working at capacity for the next 2 years (the life of the contract),so this was seen as a bargaining concession without any cost to the company.On average,an employee earns $30 per hour,including benefits.The work force consists of 800 employees,with seniority ranging from 1 year to 18 years. Required: Analyze the direct labour cost in term of variable costs,fixed costs,and the relevant range.

Use the information below to answer the following question(s). Ontario Industries Inc.had the following activities during the year: -What is the amount of the manufacturing overhead incurred at Ontario Industries Inc.?

Saskatchewan Industries Inc.had the following account balances at the end of the current year: Required: Determine the amounts for direct materials beginning inventory,manufacturing overhead,beginning work-in-process inventory,and ending finished goods inventory.

Combs,Inc. ,reports the following information for September: Required: If sales double in October,what is the projected operating income?

Answer the following question(s)using the information below. The following information pertains to Alleigh's Mannequins: -What is the average manufacturing cost per unit?

Actual costs are defined as

Cost tracing assigns indirect costs to the chosen cost object.

Generally,costs which are initially recorded as an asset and subsequently become an expense are called

A manufacturing plant produces two product lines: football equipment and hockey equipment.Direct costs for the football equipment line are the

Indirect costs cannot be economically traced directly to the cost objective.

Use the information below to answer the following question(s). The following information pertains to Payton's Shoe Manufacturing: 99,500 pairs of shoes are sold during the year for $18. -The following information pertains to the Stratford Company: What is the cost of goods sold?

An actual cost is a predicted cost.

Answer the following question(s)using the information below. The Singer Company manufactures several different products.Unit costs associated with Product ICT101 are as follows: -What are the inventoriable costs per unit associated with Product ICT101?

Period costs are never included as part of inventory.

For a manufacturing company,direct material costs may be included in