26 The choice of an allocation base (denominator) in the predetermined manufacturing overhead rate in a job order costing environment yet farked out of 00 Select one O should be the one that drives manufacturing overhead costs should be direct labour hours should be the number of jobs produced should be machine hours -27 Campbell in manufactures custom made cabinets and applies manufacturing overhead on the basis of machine hours. At the start of the year. Doreen estimated that total manufacturing overhead would be $600,000 and total machine hours would be 60,000. At the end of the year, actual overhead was $660000 and actual machine hours was 70,000 hours. How much manufacturing overhead was applied to all jobs during the year? and out of - Select one 5600,000 O $700,000 5660,000 not enough information to determine this evious Net 28 ABC applies manufacturing overhead to products on the basis of direct labour hours. Estimated manufacturing overhead for the period was $1.000.000 and estimated direct labour hours was 200.000 hours. Actual manufacturing overhead was $1,400,000 and actual direct labour hours were 240,000 hours. The manufacturing overhead was 30 Tag Select one: Onone of these Overapplied by $200.000 underapplied by $200,000 Oneither underapplied nor overapplied evious page 29 You have to decide between renting apartment at a cost of 5 300 or apartment at a cost of $500. Because apartment is larger the utility bal will be $100 per month rather than the $50 for apartment A You need a parking space for your car. A parking space is included in the rent for apartment A If you rent apartment B, you will have to pay an additional SSO for parking Your food but is $200 and your cell phone costs you 550 What are the relevant costs in this decision tor Select one: o rent utilities and parking all the items are relevant rent and utilities rent ous page Ned page 30 If total variable costs are $900 for 100 units then what is the total variable cost at 40 units? Important: Enter your answer without $ signs and without commas. For example enter 1234 and not $1,234 d out of Answer: 31 Wu Company applies manufacturing overhead on the basis of direct labout hours. It estimated that total direct labor hours will be 250,000 hours and total manufacturing overhead will be $500,000. Job w123 has accumulated direct materials of $10.000 and direct labour of $30,000. The hourly rate paid for direct laboris 515 per hour. What is the total cost of Job $123 douto Select one 500.000 O 541,000 Not enough information to determine this S64000 vious page Nend -32 Company A applies manufacturing overhead on the basis of direct labor dollars. It estimates to spend a total of $5,000,000 on direct labor and 51.000.000 on manufacturing overhead. Actual direct labor costs were 54.000.000 and actual manufacturing overhead was $800.000 The predetermined overhead rate is ad out Select one ton 50.20 per direct labor dollar $0.50 per direct labor dollar O $5.00 per direct labour dollar $5.00 per direct labor dollar evious page 33 XYZ Company purchased $100,000 of direct materials and $10,000 of indirect materials on account. The entry to record these purchases is ed out of 19 Bion Select one: O Debit raw materials inventory $110,000 and credit accounts payable 5110,000 O Debit raw materials inventory $100,000, debit MOH $10,000 and credit accounts payable $110,000 O Debit raw materials inventory 5100,000 and credit accounts payable $110,000 O Debit raw materials inventory $100,000 and credit accounts payable $100,000 wious page Variable costs belong to which cost classification? Question 34 Not yet answered Marked out of 1.00 P Flag question Select one: O Cost classification by dollar value O Cost classification by traceability Cost classification by relevance Cost classification by behaviour 35 Which of the following statements is false? vered Red out of lag bon Select one: competitive boundaries have increased due to globalization o none of these the relevance and importance of managerial accounting information has greatly increased in the past four decades there are now more allegations of management misconduct in many businesses, governments and not-for-profit organizations evious page tion 36 wered ced out of Company LMNOP applies manufacturing overhead on the basis of direct labour cost. The following information is available for Job #100. Direct materials $10,000 Direct labour $20,000 Applied manufacturing overhead $5,000 lag tion It appears that the predetermined overhead rate used is Select one: O Not enough information is given to determine this O 40% of direct labour cost O 25% of direct labour cost 50% of direct labour costs on 37 wered ked out of Flag estion Outdoor Living produces patio furniture. The following cost information is available for the second quarter. indirect factory labour $640 Direct materials used $125 Factory rent $3146 Advertising $75 Direct factory labour $115 Factory insurance $1836 Property taxes on factory $2049 Required: Compute the indirect manufacturing costs Important: Enter your answer without $ signs and without commas. For example enter 1234 and not $1,234 Answer: estion 38 A direct cost is yet wered ked out of Flag estion Select one: o always fixed none of these O always variable always relevant