Question 1

For Case (A)above,what is the Beginning Balance (BB)?

Accepted Answer

A) $52,000. 
B) $82,000. 
C) $67,000. 
D) $97,600. 
A) $52,000. 
B) $82,000. 
C) $67,000. 
D) $97,600.

Question 2

Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves?

Accepted Answer

A) Machine-hours. 
B) Power consumption. 
C) Direct labor-hours. 
D) Machine setups. 
A) Machine-hours. 
B) Power consumption. 
C) Direct labor-hours. 
D) Machine setups.

Question 3

Hospitals are more likely to use a process costing system than a job order costing system.Each procedure/patient will use different resources.

Accepted Answer

A) True 
 B)False

Question 4

It is important that cost management systems are designed using the cost-benefit principle so that the costs of gathering additional information are balanced against the benefits of that information.Cost-benefit analysis is a fundamental theme.

Accepted Answer

A) True 
 B)False

Question 5

The Super Supply Company manufactures cleaning spray for public schools.During 2012,the company spent $600,000 on prime costs and $800,000 on conversion costs.Overhead is applied at a rate of 150% of direct labor costs.How much did the company allocate (apply)for manufacturing overhead during 2012?

Accepted Answer

A) $480,000. 
B) $360,000. 
C) $320,000. 
D) $300,000. 
A) $480,000. 
B) $360,000. 
C) $320,000. 
D) $300,000.

Question 6

Fab Co.manufactures textiles.Among Fab's 2012 manufacturing costs were the following salaries and wages:   What was the amount of Fab's 2012 direct labor? (CPA adapted)

Accepted Answer

A) $195,000. 
B) $165,000. 
C) $150,000. 
D) $120,000. 
A) $195,000. 
B) $165,000. 
C) $150,000. 
D) $120,000.

Question 7

In computing its predetermined overhead rate,Marple Company inadvertently left its indirect labor costs out of the computation.This oversight will cause:

Accepted Answer

A) Manufacturing Overhead to be overapplied. 
B) the Cost of Goods Manufactured to be understated. 
C) the debits to the Manufacturing Overhead account to be understated. 
D) the ending balance in Work-in-Process to be overstateD.The omission of an overhead item will cause the application to be less than it should be and Cost of Goods Manufactured will be less than it should be. 
A) Manufacturing Overhead to be overapplied. 
B) the Cost of Goods Manufactured to be understated. 
C) the debits to the Manufacturing Overhead account to be understated. 
D) the ending balance in Work-in-Process to be overstateD.The omission of an overhead item will cause the application to be less than it should be and Cost of Goods Manufactured will be less than it should be.

Question 8

For Case (C)above,what is the Transferred-In (TI)?

Accepted Answer

A) $146,700. 
B) $178,400. 
C) $190,790. 
D) $185,400. 
A) $146,700. 
B) $178,400. 
C) $190,790. 
D) $185,400.

For Case (A)above,what is the Beginning Balance (BB)?

Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves?

Hospitals are more likely to use a process costing system than a job order costing system.Each procedure/patient will use different resources.

It is important that cost management systems are designed using the cost-benefit principle so that the costs of gathering additional information are balanced against the benefits of that information.Cost-benefit analysis is a fundamental theme.

The Super Supply Company manufactures cleaning spray for public schools.During 2012,the company spent $600,000 on prime costs and $800,000 on conversion costs.Overhead is applied at a rate of 150% of direct labor costs.How much did the company allocate (apply)for manufacturing overhead during 2012?

Fab Co.manufactures textiles.Among Fab's 2012 manufacturing costs were the following salaries and wages: What was the amount of Fab's 2012 direct labor? (CPA adapted)

In computing its predetermined overhead rate,Marple Company inadvertently left its indirect labor costs out of the computation.This oversight will cause:

For Case (C)above,what is the Transferred-In (TI)?

Cost Accounting: Information for Decision Making

Cost Concepts and Behavior

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Job Costing

Process Costing

Activity-Based Costing

Fundamentals of Cost Management

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Fundamentals of Variance Analysis

Additional Topics in Variance Analysis

Performance Measurement to Support Business Strategy

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Exam 6: Fundamentals of Product and Service Costing

For Case (A)above,what is the Beginning Balance (BB)?

Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves?

Hospitals are more likely to use a process costing system than a job order costing system.Each procedure/patient will use different resources.

It is important that cost management systems are designed using the cost-benefit principle so that the costs of gathering additional information are balanced against the benefits of that information.Cost-benefit analysis is a fundamental theme.

The Super Supply Company manufactures cleaning spray for public schools.During 2012,the company spent $600,000 on prime costs and $800,000 on conversion costs.Overhead is applied at a rate of 150% of direct labor costs.How much did the company allocate (apply)for manufacturing overhead during 2012?

Fab Co.manufactures textiles.Among Fab's 2012 manufacturing costs were the following salaries and wages: What was the amount of Fab's 2012 direct labor? (CPA adapted)

In computing its predetermined overhead rate,Marple Company inadvertently left its indirect labor costs out of the computation.This oversight will cause:

For Case (C)above,what is the Transferred-In (TI)?

Cost Accounting: Information for Decision Making

Cost Concepts and Behavior

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Job Costing

Process Costing

Activity-Based Costing

Fundamentals of Cost Management

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Fundamentals of Variance Analysis

Additional Topics in Variance Analysis

Performance Measurement to Support Business Strategy

Filters